In today's fast-paced and highly competitive business world, it is crucial for investors and industry followers to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating Apple ( AAPL ) in relation to its major competitors in the Technology Hardware, Storage & Peripherals industry. By closely examining key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and highlight 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.

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When closely examining Apple ( AAPL ), the following trends emerge:

At 30.62, 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 43.96 which exceeds the industry average by 6.79x.

The stock's relatively high Price to Sales ratio of 7.46, surpassing the industry average by 3.66x, may indicate an aspect of overvaluation in terms of sales performance.

With a Return on Equity (ROE) of 37.11% that is 32.1% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.

With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $32.25 Billion, which is 134.38x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.

Compared to its industry, the company has higher gross profit of $44.87 Billion, which indicates 62.32x above the industry average, indicating stronger profitability and higher earnings from its core operations.

The company's revenue growth of 5.08% is significantly lower compared to the industry average of 10.74%. This indicates a potential fall in the company's sales performance.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio provides insights into the proportion of debt a company has in relation to its equity and asset value.

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.

By considering the Debt-to-Equity ratio, Apple ( AAPL ) can be compared to its top 4 peers, leading to the following observations:

When evaluating the debt-to-equity ratio, Apple ( AAPL ) is in the middle position among its top 4 peers.

The company maintains a moderate level of debt relative to its equity with a debt-to-equity ratio of 1.47, suggesting a relatively balanced financial structure.

Key Takeaways

For Apple ( AAPL ) in the Technology Hardware, Storage & Peripherals industry, the PE ratio is low compared to peers, indicating potential undervaluation. The high PB and PS ratios suggest that the market values Apple's ( AAPL ) assets and sales highly. Apple's ( AAPL ) high ROE, EBITDA, and gross profit reflect strong profitability, while the low revenue growth may indicate a need for expansion strategies to align with industry trends.

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