In the ever-evolving and intensely competitive business landscape, conducting a thorough company analysis is of utmost importance for investors and industry followers. In this article, we will carry out an in-depth industry comparison, assessing Apple ( AAPL ) alongside its primary competitors in the Technology Hardware, Storage & Peripherals industry. By meticulously examining key financial metrics, market positioning, and growth prospects, we aim to offer valuable insights to 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:

The stock's Price to Earnings ratio of 35.92 is lower than the industry average by 0.71x, suggesting potential value in the eyes of market participants.

The elevated Price to Book ratio of 53.36 relative to the industry average by 5.4x suggests company might be overvalued based on its book value.

With a relatively high Price to Sales ratio of 8.75, which is 2.62x the industry average, the stock might be considered overvalued based on sales performance.

With a Return on Equity (ROE) of 35.34% that is 29.55% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.

Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $31.03 Billion, which is 88.66x above the industry average, indicating stronger profitability and robust cash flow generation.

The gross profit of $43.72 Billion is 47.52x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.

With a revenue growth of 9.63%, which surpasses the industry average of 6.78%, the company is demonstrating robust sales expansion and gaining market share.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio assesses the extent to which a company relies on borrowed funds compared to its equity.

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 assessing Apple ( AAPL ) against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:

Compared to its top 4 peers, Apple ( AAPL ) has a moderate debt-to-equity ratio of 1.54, indicating a balanced financial structure.

This suggests that the company maintains a reasonable level of debt while also leveraging equity financing.

Key Takeaways

For Apple ( AAPL ), the PE, PB, and PS ratios are indicating a mix of low and high values compared to its peers in the Technology Hardware, Storage & Peripherals industry. The high ROE, EBITDA, gross profit, and revenue growth suggest strong performance relative to industry standards. Apple's ( AAPL ) valuation appears to be influenced by a combination of earnings multiples and operational efficiency metrics, positioning it uniquely within the sector.

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