In the ever-changing and fiercely competitive business landscape, conducting thorough company analysis is crucial for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Apple ( AAPL ) and its primary competitors in the Technology Hardware, Storage & Peripherals industry. By closely examining key financial metrics, market position, and growth prospects, our aim is 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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Through an analysis of Apple ( AAPL ), we can infer the following trends:

At 37.35, the stock's Price to Earnings ratio significantly exceeds the industry average by 1.03x, suggesting a premium valuation relative to industry peers.

The elevated Price to Book ratio of 52.95 relative to the industry average by 10.34x suggests company might be overvalued based on its book value.

With a relatively high Price to Sales ratio of 9.1, which is 5.58x the industry average, the stock might be considered overvalued based on sales performance.

The Return on Equity (ROE) of 58.74% is 51.79% above the industry average, highlighting efficient use of equity to generate profits.

The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $45.91 Billion, which is 106.77x above the industry average, implying stronger profitability and robust cash flow generation.

With higher gross profit of $58.27 Billion, which indicates 70.2x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.

The company's revenue growth of 3.95% is significantly below the industry average of 22.95%. This suggests a potential struggle in generating increased sales volume.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations.

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 evaluating Apple ( AAPL ) against its top 4 peers in terms of the Debt-to-Equity ratio, the following observations arise:

Compared to its top 4 peers, Apple ( AAPL ) has a moderate debt-to-equity ratio of 1.45, 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 are all high compared to its peers, indicating that the stock may be overvalued. On the other hand, Apple's ( AAPL ) high ROE, EBITDA, and gross profit suggest strong profitability and operational efficiency relative to industry peers. However, the low revenue growth rate may be a concern for the company's future performance compared to its competitors in the sector.

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