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 closely examining Apple ( AAPL ), we can identify the following trends:

At 36.88, the stock's Price to Earnings ratio significantly exceeds the industry average by 1.1x, suggesting a premium valuation relative to industry peers.

With a Price to Book ratio of 59.52, which is 10.28x 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.

With a relatively high Price to Sales ratio of 8.84, which is 4.4x the industry average, the stock might be considered overvalued based on sales performance.

The Return on Equity (ROE) of 23.83% is 16.97% 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 $32.5 Billion, which is 85.53x above the industry average, implying stronger profitability and robust cash flow generation.

The gross profit of $43.88 Billion is 55.54x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.

The company's revenue growth of 6.07% is significantly lower compared to the industry average of 180.48%. 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:

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 1.87.

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, and gross profit suggest strong profitability and operational efficiency. However, the low revenue growth rate may be a concern for the company's future performance relative to its industry peers.

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