In today's rapidly changing and fiercely competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies. In this article, we will conduct a comprehensive industry comparison, evaluating Apple ( AAPL ) against its key competitors in the Technology Hardware, Storage & Peripherals industry. By examining key financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.

Apple Background

Apple ( AAPL ) is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple's ( AAPL ) iPhone makes up a majority of the firm sales, and Apple's ( AAPL ) other products like Mac, iPad, and Watch are designed around the iPhone as the focal point of an expansive software ecosystem. Apple ( AAPL ) has progressively worked to add new applications, like streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors while working with subcontractors like Foxconn and TSMC to build its products and chips. Slightly less than half of Apple's ( AAPL ) sales come directly through its flagship stores, with a majority of sales coming indirectly through partnerships and distribution.

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When conducting a detailed analysis of Apple ( AAPL ), the following trends become clear:

At 36.07, the stock's Price to Earnings ratio is 0.65x less than the industry average, suggesting favorable growth potential.

The elevated Price to Book ratio of 53.92 relative to the industry average by 5.01x suggests company might be overvalued based on its book value.

The Price to Sales ratio of 9.7, which is 2.54x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

The company has a higher Return on Equity (ROE) of 39.36%, which is 31.2% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.

The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $35.55 Billion, which is 69.71x above the industry average, indicating stronger profitability and robust cash flow generation.

With higher gross profit of $48.34 Billion, which indicates 50.88x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.

With a revenue growth of 7.94%, which surpasses the industry average of 6.83%, the company is demonstrating robust sales expansion and gaining market share.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is a key indicator of a company's financial health and its reliance on debt financing.

Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.

When comparing Apple ( AAPL ) with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:

In terms of the debt-to-equity ratio, Apple ( AAPL ) is positioned in the middle among its top 4 peers.

This suggests a relatively balanced financial structure, where the company maintains a moderate level of debt while also utilizing equity financing with a debt-to-equity ratio of 1.34.

Key Takeaways

For Apple ( AAPL ) in the Technology Hardware, Storage & Peripherals industry, the PE, PB, and PS ratios indicate that the stock is relatively undervalued compared to its peers. However, the high ROE, EBITDA, gross profit, and revenue growth suggest that Apple ( AAPL ) is performing exceptionally well within its industry sector. These metrics highlight Apple's ( AAPL ) strong financial performance and growth potential in the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.