In today's rapidly evolving and fiercely competitive business landscape, it is crucial for investors and industry analysts to conduct comprehensive company evaluations. In this article, we will undertake an in-depth industry comparison, assessing Apple ( AAPL ) alongside its primary competitors in the Technology Hardware, Storage & Peripherals industry. By meticulously examining crucial financial indicators, market positioning, and growth potential, we aim to provide 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 31.29, which is 0.94x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.

It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 44.91 which exceeds the industry average by 7.05x.

With a relatively high Price to Sales ratio of 7.63, which is 4.1x the industry average, the stock might be considered overvalued based on sales performance.

The company has a higher Return on Equity (ROE) of 37.11%, which is 31.38% 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 $32.25 Billion is 107.5x above the industry average, highlighting stronger profitability and robust cash flow generation.

The gross profit of $44.87 Billion is 57.53x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.

The company's revenue growth of 5.08% is significantly lower compared to the industry average of 10.62%. 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 considering the Debt-to-Equity ratio, Apple ( AAPL ) can be compared to its top 4 peers, leading to the following observations:

Apple ( AAPL ) falls in the middle of the list when considering the debt-to-equity ratio.

This indicates that the company has a moderate level of debt relative to its equity with a debt-to-equity ratio of 1.47, suggesting a balanced financial structure with a reasonable debt-equitymix.

Key Takeaways

For Apple ( AAPL ) in the Technology Hardware, Storage & Peripherals industry, the PE ratio is low compared to peers, indicating potential undervaluation. The PB and PS ratios are high, suggesting overvaluation relative to industry standards. In terms of ROE, EBITDA, gross profit, and revenue growth, Apple ( AAPL ) demonstrates strong performance compared to its peers, reflecting a solid financial position and growth potential within the industry sector.

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