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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Through an analysis of Apple ( AAPL ), we can infer the following trends:

The stock's Price to Earnings ratio of 35.29 is lower than the industry average by 0.76x, suggesting potential value in the eyes of market participants.

The elevated Price to Book ratio of 52.43 relative to the industry average by 5.69x suggests company might be overvalued based on its book value.

The stock's relatively high Price to Sales ratio of 8.59, surpassing the industry average by 2.79x, may indicate an aspect of overvaluation in terms of sales performance.

The company has a higher Return on Equity (ROE) of 35.34%, which is 29.55% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.

Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $31.03 Billion, which is 100.1x above the industry average, indicating stronger profitability and robust cash flow generation.

The company has higher gross profit of $43.72 Billion, which indicates 52.05x above the industry average, indicating stronger profitability and higher earnings from its core operations.

The company's revenue growth of 9.63% is notably higher compared to the industry average of 8.12%, showcasing exceptional sales performance and strong demand for its products or services.

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 considering the Debt-to-Equity ratio, Apple ( AAPL ) can be compared to its top 4 peers, leading to the following observations:

When compared to its top 4 peers, Apple ( AAPL ) has a moderate debt-to-equity ratio of 1.54.

This implies that the company maintains a balanced financial structure with a reasonable level of debt and an appropriate reliance on equity financing.

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 strong market sentiment and revenue multiples. Apple's ( AAPL ) high ROE, EBITDA, gross profit, and revenue growth outperform industry peers, reflecting strong financial performance and growth potential.

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