In today's rapidly changing and highly competitive business world, it is imperative for investors and industry observers to carefully assess companies before making investment choices. In this article, we will undertake a comprehensive industry comparison, evaluating Apple ( AAPL ) vis-à-vis its key competitors in the Technology Hardware, Storage & Peripherals industry. Through a detailed analysis of important financial indicators, market standing, and growth potential, our goal 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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By carefully studying Apple ( AAPL ), we can deduce the following trends:

At 31.25, the stock's Price to Earnings ratio is 0.88x 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 44.86 which exceeds the industry average by 6.75x.

The Price to Sales ratio of 7.62, which is 3.97x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

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.

With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $32.25 Billion, which is 124.04x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.

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

With a revenue growth of 5.08%, which is much lower than the industry average of 9.13%, the company is experiencing a notable slowdown in sales expansion.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is a measure that indicates the level of debt a company has taken on relative to the value of its assets net of liabilities.

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 evaluating Apple ( AAPL ) alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:

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 ratio is low compared to peers, indicating potential undervaluation. The PB and PS ratios are high, suggesting overvaluation relative to industry standards. In terms of ROE, EBITDA, gross profit, and revenue growth, Apple ( AAPL ) demonstrates strong performance compared to its industry peers, reflecting favorable financial health and operational efficiency.

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