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 thorough examination of Apple ( AAPL ), we can discern the following trends:

With a Price to Earnings ratio of 31.14, which is 0.92x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.

With a Price to Book ratio of 44.71, which is 6.85x the industry average, Apple ( AAPL ) might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.

The Price to Sales ratio of 7.59, which is 4.04x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

The company has a higher Return on Equity (ROE) of 37.11%, which is 31.63% 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 $32.25 Billion, which is 107.5x above the industry average, indicating stronger profitability and robust cash flow generation.

Compared to its industry, the company has higher gross profit of $44.87 Billion, which indicates 57.53x above the industry average, indicating stronger profitability and higher earnings from its core operations.

The company's revenue growth of 5.08% is significantly below the industry average of 10.14%. This suggests a potential struggle in generating increased sales volume.

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.

In light of the Debt-to-Equity ratio, a comparison between Apple ( AAPL ) and its top 4 peers reveals the following information:

Compared to its top 4 peers, Apple ( AAPL ) has a moderate debt-to-equity ratio of 1.47, 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 ) 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, but may be experiencing slower revenue growth compared to industry peers.

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