In today's rapidly changing and fiercely competitive business landscape, it is vital for investors and industry enthusiasts to carefully evaluate companies. In this article, we will perform a comprehensive industry comparison, evaluating Apple ( AAPL ) against its key competitors in the Technology Hardware, Storage & Peripherals industry. By analyzing important 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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Through a detailed examination of Apple ( AAPL ), we can deduce the following trends:

With a Price to Earnings ratio of 39.02, which is 0.88x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.

With a Price to Book ratio of 55.32, which is 7.51x the industry average, Apple ( AAPL ) might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.

The stock's relatively high Price to Sales ratio of 9.5, surpassing the industry average by 3.96x, may indicate an aspect of overvaluation in terms of sales performance.

The Return on Equity (ROE) of 58.74% is 51.31% above the industry average, highlighting efficient use of equity to generate profits.

With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $45.91 Billion, which is 109.31x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.

The company has higher gross profit of $58.27 Billion, which indicates 71.06x above the industry average, indicating stronger profitability and higher earnings from its core operations.

With a revenue growth of 3.95%, which is much lower than the industry average of 21.69%, the company is experiencing a notable slowdown in sales expansion.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is a financial metric that helps determine the level of financial risk associated with a company's capital structure.

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 the context of the debt-to-equity ratio, Apple ( AAPL ) holds a middle position among its top 4 peers.

This indicates a moderate level of debt relative to its equity with a debt-to-equity ratio of 1.45, which implies a relatively balanced financial structure with a reasonable debt-equity mix.

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 low revenue growth suggest that Apple ( AAPL ) is efficiently utilizing its resources and generating strong profits, but may be facing challenges in revenue expansion.

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