In the dynamic and fiercely competitive business environment, conducting a thorough analysis of companies is crucial for investors and industry enthusiasts. In this article, we will perform an extensive industry comparison, evaluating Apple ( AAPL ) in relation to its major competitors in the Technology Hardware, Storage & Peripherals industry. By closely examining crucial financial metrics, market position, and growth prospects, we aim to offer 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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By analyzing Apple ( AAPL ), we can infer the following trends:

The stock's Price to Earnings ratio of 41.86 is lower than the industry average by 0.91x, suggesting potential value in the eyes of market participants.

The elevated Price to Book ratio of 67.55 relative to the industry average by 10.2x suggests company might be overvalued based on its book value.

The stock's relatively high Price to Sales ratio of 10.03, surpassing the industry average by 4.69x, may indicate an aspect of overvaluation in terms of sales performance.

The company has a higher Return on Equity (ROE) of 23.83%, which is 16.47% 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 $32.5 Billion, which is 67.71x above the industry average, indicating stronger profitability and robust cash flow generation.

With higher gross profit of $43.88 Billion, which indicates 53.51x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.

The company is witnessing a substantial decline in revenue growth, with a rate of 6.07% compared to the industry average of 22.62%, which indicates a challenging sales environment.

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.

By analyzing Apple ( AAPL ) in relation to its top 4 peers based on the Debt-to-Equity ratio, the following insights can be derived:

Apple ( AAPL ) falls in the middle of the list when considering the debt-to-equity ratio.

This indicates that the company has a moderate level of debt relative to its equity with a debt-to-equity ratio of 1.87, suggesting a balanced financial structure with a reasonable debt-equitymix.

Key Takeaways

For Apple ( AAPL ) in the Technology Hardware, Storage & Peripherals industry, the PE ratio is low compared to peers, indicating potential undervaluation. The high PB and PS ratios suggest that the market values Apple's ( AAPL ) assets and sales highly. Apple's ( AAPL ) high ROE, EBITDA, and gross profit reflect strong profitability compared to industry peers. However, the low revenue growth may indicate challenges in expanding market share.

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