In today's rapidly changing and fiercely competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies. In this article, we will conduct a comprehensive industry comparison, evaluating Apple ( AAPL ) against its key competitors in the Technology Hardware, Storage & Peripherals industry. By examining key 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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After a detailed analysis of Apple ( AAPL ), the following trends become apparent:

With a Price to Earnings ratio of 37.81, which is 0.8x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.

The elevated Price to Book ratio of 60.7 relative to the industry average by 9.03x suggests company might be overvalued based on its book value.

The stock's relatively high Price to Sales ratio of 9.06, surpassing the industry average by 4.16x, may indicate an aspect of overvaluation in terms of sales performance.

The Return on Equity (ROE) of 23.83% is 16.47% above the industry average, highlighting efficient use of equity to generate profits.

The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $32.5 Billion, which is 79.27x above the industry average, indicating stronger profitability and robust cash flow generation.

The gross profit of $43.88 Billion is 53.51x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.

With a revenue growth of 6.07%, which is much lower than the industry average of 22.64%, the company is experiencing a notable slowdown in sales expansion.

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 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 1.87, 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, despite slower revenue growth. Overall, Apple's ( AAPL ) financial performance is solid, with room for potential growth in the future.

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