In today's rapidly changing and fiercely competitive business landscape, it is vital for investors and industry enthusiasts to carefully evaluate 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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Upon closer analysis of Apple ( AAPL ), the following trends become apparent:

With a Price to Earnings ratio of 36.9, which is 0.88x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.

With a Price to Book ratio of 52.31, which is 7.52x 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 8.99, which is 4.0x 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 58.74% is 51.31% above the industry average, highlighting efficient use of equity to generate profits.

Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $45.91 Billion, which is 109.31x above the industry average, indicating stronger profitability and robust cash flow generation.

The gross profit of $58.27 Billion is 71.06x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.

The company's revenue growth of 3.95% is significantly below the industry average of 21.69%. This suggests a potential struggle in generating increased sales volume.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio gauges the extent to which a company has financed its operations through debt relative to 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.

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

In the context of the debt-to-equity ratio, Apple ( AAPL ) holds a middle position among its top 4 peers.

This indicates a moderate level of debt relative to its equity with a debt-to-equity ratio of 1.45, which implies a relatively balanced financial structure with a reasonable debt-equity mix.

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. Overall, Apple ( AAPL ) appears to be a solid performer in the industry based on these key financial metrics.

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