Amidst today's fast-paced and highly competitive business environment, it is crucial for investors and industry enthusiasts to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating Apple ( AAPL ) in comparison to its major competitors within the Technology Hardware, Storage & Peripherals industry. By analyzing critical financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in 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 carefully studying Apple ( AAPL ), we can deduce the following trends:

A Price to Earnings ratio of 32.5 significantly below the industry average by 0.86x suggests undervaluation. This can make the stock appealing for those seeking growth.

It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 46.65 which exceeds the industry average by 6.8x.

With a relatively high Price to Sales ratio of 7.92, which is 3.88x the industry average, the stock might be considered overvalued based on sales performance.

With a Return on Equity (ROE) of 37.11% that is 32.35% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.

The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $32.25 Billion is 129.0x above the industry average, highlighting stronger profitability and robust cash flow generation.

With higher gross profit of $44.87 Billion, which indicates 59.04x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.

The company's revenue growth of 5.08% is significantly below the industry average of 12.29%. This suggests a potential struggle in generating increased sales volume.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is a key indicator of a company's financial health and its reliance on debt financing.

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 assessing Apple ( AAPL ) against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:

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 1.47.

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.