In today's rapidly evolving and fiercely competitive business landscape, it is crucial for investors and industry analysts to conduct comprehensive company evaluations. In this article, we will undertake an in-depth industry comparison, assessing Apple ( AAPL ) alongside its primary competitors in the Technology Hardware, Storage & Peripherals industry. By meticulously examining crucial financial indicators, market positioning, and growth potential, we aim to provide valuable insights to 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 a meticulous analysis of Apple ( AAPL ), we can observe the following trends:

At 37.46, the stock's Price to Earnings ratio is 0.91x less than the industry average, suggesting favorable growth potential.

It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 53.11 which exceeds the industry average by 7.78x.

The stock's relatively high Price to Sales ratio of 9.12, surpassing the industry average by 4.15x, may indicate an aspect of overvaluation in terms of sales performance.

The company has a higher Return on Equity (ROE) of 58.74%, which is 51.31% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.

The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $45.91 Billion is 109.31x above the industry average, highlighting stronger profitability and robust cash flow generation.

The company has higher gross profit of $58.27 Billion, which indicates 71.06x above the industry average, indicating stronger profitability and higher earnings from its core operations.

With a revenue growth of 3.95%, which is much lower than the industry average of 21.69%, the company is experiencing a notable slowdown in sales expansion.

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.

When comparing Apple ( AAPL ) with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:

As Apple ( AAPL ) is in the middle of the list in terms of the debt-to-equity ratio, it suggests that the company has a moderate debt-to-equity ratio of 1.45 compared to the other companies.

This position indicates a relatively balanced financial structure, where the company maintains a reasonable level of debt while also leveraging equity for financing its operations.

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 performing well financially and efficiently utilizing its resources within the industry sector.

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