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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Through an analysis of Apple ( AAPL ), we can infer the following trends:

The Price to Earnings ratio of 33.34 is 0.82x lower than the industry average, indicating potential undervaluation for the stock.

With a Price to Book ratio of 47.86, which is 6.57x 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 Price to Sales ratio of 8.13, which is 3.73x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

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

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 below the industry average of 12.29%. This suggests a potential struggle in generating increased sales volume.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio provides insights into the proportion of debt a company has in relation to its equity and asset value.

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 analyzing Apple ( AAPL ) in relation to its top 4 peers based on the Debt-to-Equity ratio, the following insights can be derived:

In terms of the debt-to-equity ratio, Apple ( AAPL ) is positioned in the middle among its top 4 peers.

This suggests a relatively balanced financial structure, where the company maintains a moderate level of debt while also utilizing equity financing with a debt-to-equity ratio of 1.47.

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.