Amidst today's fast-paced and highly competitive business environment, it is crucial for investors and industry enthusiasts to conduct comprehensive company evaluations. 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 a thorough examination of Apple ( AAPL ), we can discern the following trends:

The stock's Price to Earnings ratio of 31.99 is lower than the industry average by 0.99x, suggesting potential value in the eyes of market participants.

It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 45.92 which exceeds the industry average by 7.89x.

With a relatively high Price to Sales ratio of 7.8, which is 4.36x 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 27.26% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.

With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $45.91 Billion, which is 104.34x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.

The company has higher gross profit of $58.27 Billion, which indicates 64.74x above the industry average, indicating stronger profitability and higher earnings from its core operations.

The company is witnessing a substantial decline in revenue growth, with a rate of -23.28% compared to the industry average of 11.69%, which indicates a challenging sales environment.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio measures the financial leverage of a company by evaluating its debt relative to its equity.

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:

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, 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, despite slower revenue growth. Overall, Apple's ( AAPL ) financial performance is solid, with room for potential growth in the future.

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