In the fast-paced and highly competitive business world of today, conducting thorough company analysis is essential for investors and industry observers. In this article, we will conduct an extensive industry comparison, evaluating Apple ( AAPL ) in relation to its major competitors in the Technology Hardware, Storage & Peripherals industry. Through a detailed examination of key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and illuminate 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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Through an analysis of Apple ( AAPL ), we can infer the following trends:

A Price to Earnings ratio of 38.83 significantly below the industry average by 0.9x suggests undervaluation. This can make the stock appealing for those seeking growth.

It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 55.04 which exceeds the industry average by 7.81x.

The stock's relatively high Price to Sales ratio of 9.46, surpassing the industry average by 4.1x, may indicate an aspect of overvaluation in terms of sales performance.

The company has a higher Return on Equity (ROE) of 58.74%, which is 51.31% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.

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

Compared to its industry, 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.

The company's revenue growth of 3.95% is significantly lower compared to the industry average of 21.69%. This indicates a potential fall in the company's sales performance.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage 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.

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

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 1.45.

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 performing well financially but may face challenges in revenue expansion. Overall, Apple's ( AAPL ) strong profitability metrics outweigh the lower revenue growth, positioning it favorably within the industry sector.

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