In the dynamic and fiercely competitive business environment, conducting a thorough analysis of companies is crucial for investors and industry enthusiasts. In this article, we will perform an extensive industry comparison, evaluating Apple ( AAPL ) in relation to its major competitors in the Technology Hardware, Storage & Peripherals industry. By closely examining crucial financial metrics, market position, and growth prospects, we aim to offer 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.

table {

width: 100%;

border-collapse: collapse;

font-family: Arial, sans-serif;

font-size: 14px;

}

th, td {

padding: 8px;

text-align: left;

}

th {

background-color: #293a5a;

color: #fff;

text-align: left;

}

tr:nth-child(even) {

background-color: #f2f4f8;

}

tr:hover {

background-color: #e1e4ea;

}

td:nth-child(3), td:nth-child(5) {

text-align: left;

}

.dividend-amount {

font-weight: bold;

color: #0d6efd;

}

.dividend-frequency {

font-size: 12px;

color: #6c757d;

}

By thoroughly analyzing Apple ( AAPL ), we can discern the following trends:

Notably, the current Price to Earnings ratio for this stock, 32.25, is 1.19x above the industry norm, reflecting a higher valuation relative to the industry.

With a Price to Book ratio of 45.72, which is 10.34x 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 7.86, which is 5.7x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

With a Return on Equity (ROE) of 58.74% that is 50.21% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.

The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $45.91 Billion, which is 117.72x above the industry average, indicating stronger profitability and robust cash flow generation.

The company has higher gross profit of $58.27 Billion, which indicates 73.76x 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 3.95% compared to the industry average of 22.16%, which indicates a challenging sales environment.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage of a company.

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 1.45, 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, gross profit, and low revenue growth suggest strong profitability and operational efficiency relative to its industry competitors.

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