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

At 41.08, the stock's Price to Earnings ratio is 0.91x less than the industry average, suggesting favorable growth potential.

The elevated Price to Book ratio of 66.3 relative to the industry average by 10.2x suggests company might be overvalued based on its book value.

With a relatively high Price to Sales ratio of 9.84, which is 4.69x the industry average, the stock might be considered overvalued based on sales performance.

With a Return on Equity (ROE) of 23.83% that is 16.47% above the industry average, it appears that the company exhibits 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.

With higher gross profit of $43.88 Billion, which indicates 54.85x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.

With a revenue growth of 6.07%, which is much lower than the industry average of 21.95%, the company is experiencing a notable slowdown in sales expansion.

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 ) can be assessed by comparing it to its top 4 peers, resulting in the following observations:

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

This suggests a balanced financial structure, where the company maintains a moderate level of debt while also relying on 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 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, despite slower revenue growth. Overall, Apple's ( AAPL ) financial performance is solid, with room for potential growth in the future.

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