In the fast-paced and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Apple ( AAPL ) in comparison to its major competitors within the Technology Hardware, Storage & Peripherals industry. By analyzing crucial 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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By analyzing Apple ( AAPL ), we can infer the following trends:

With a Price to Earnings ratio of 34.99, which is 0.9x 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 51.98, which is 6.54x 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 stock's relatively high Price to Sales ratio of 8.52, surpassing the industry average by 3.19x, may indicate an aspect of overvaluation in terms of sales performance.

The Return on Equity (ROE) of 35.34% is 29.55% 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 $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 is a measure that indicates the level of debt a company has taken on relative to the value of its assets net of liabilities.

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:

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 1.54, 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 revenue growth suggest that Apple ( AAPL ) is performing exceptionally well in terms of profitability and growth within the industry sector.

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