Amidst the fast-paced and highly competitive business environment of today, conducting comprehensive company analysis is essential for investors and industry enthusiasts. In this article, we will delve into an extensive industry comparison, evaluating Apple ( AAPL ) in comparison to its major competitors within the Technology Hardware, Storage & Peripherals industry. By analyzing critical financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in 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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After thoroughly examining Apple ( AAPL ), the following trends can be inferred:

At 34.47, the stock's Price to Earnings ratio is 0.92x less than the industry average, suggesting favorable growth potential.

With a Price to Book ratio of 51.21, which is 7.25x 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 8.39, surpassing the industry average by 3.7x, may indicate an aspect of overvaluation in terms of sales performance.

With a Return on Equity (ROE) of 35.34% that is 30.76% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.

The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $31.03 Billion, which is 124.12x above the industry average, implying stronger profitability and robust cash flow generation.

The company has higher gross profit of $43.72 Billion, which indicates 57.53x above the industry average, indicating stronger profitability and higher earnings from its core operations.

With a revenue growth of 9.63%, which surpasses the industry average of 4.87%, the company is demonstrating robust sales expansion and gaining market share.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is an important measure to assess the financial structure and risk profile of a company.

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 evaluating Apple ( AAPL ) alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:

As Apple ( AAPL ) is in the middle of the list in terms of the debt-to-equity ratio, it suggests that the company has a moderate debt-to-equity ratio of 1.54 compared to the other companies.

This position indicates a relatively balanced financial structure, where the company maintains a reasonable level of debt while also leveraging equity for financing its operations.

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 in terms of profitability and growth within the industry sector.

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