In today's rapidly changing and highly competitive business world, it is vital for investors and industry enthusiasts to carefully assess companies. In this article, we will perform a comprehensive industry comparison, evaluating Apple ( AAPL ) against its key competitors in the Technology Hardware, Storage & Peripherals industry. By analyzing important financial metrics, market position, and growth prospects, we aim 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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By analyzing Apple ( AAPL ), we can infer the following trends:

The Price to Earnings ratio of 33.3 is 0.85x lower than the industry average, indicating potential undervaluation for the stock.

It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 47.8 which exceeds the industry average by 6.8x.

The stock's relatively high Price to Sales ratio of 8.12, surpassing the industry average by 3.87x, may indicate an aspect of overvaluation in terms of sales performance.

The company has a higher Return on Equity (ROE) of 37.11%, which is 32.35% 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 $32.25 Billion, which is 129.0x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.

Compared to its industry, the company has higher gross profit of $44.87 Billion, which indicates 59.04x above the industry average, indicating 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 12.29%. This indicates a potential fall in the company's sales performance.

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 terms of the Debt-to-Equity ratio, Apple ( AAPL ) stands in comparison with its top 4 peers, leading to the following comparisons:

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 ratio is low compared to peers, indicating potential undervaluation. The high PB and PS ratios suggest that the market values Apple's ( AAPL ) assets and sales highly. Apple's ( AAPL ) high ROE, EBITDA, and gross profit reflect strong profitability and operational efficiency. However, the low revenue growth may indicate challenges in expanding market share compared to industry peers.

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