In the ever-changing and fiercely competitive business landscape, conducting thorough company analysis is crucial for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Apple ( AAPL ) and its primary competitors in the Technology Hardware, Storage & Peripherals industry. By closely examining key financial metrics, market position, and growth prospects, our aim is 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 carefully studying Apple ( AAPL ), we can deduce the following trends:

The stock's Price to Earnings ratio of 36.81 is lower than the industry average by 0.72x, suggesting potential value in the eyes of market participants.

With a Price to Book ratio of 59.1, which is 8.2x 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.

The Price to Sales ratio of 8.82, which is 3.74x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

The Return on Equity (ROE) of 23.83% is 16.47% 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 79.27x above the industry average, implying stronger profitability and robust cash flow generation.

With higher gross profit of $43.88 Billion, which indicates 53.51x 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 22.64%, the company is experiencing a notable slowdown in sales expansion.

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.

When examining Apple ( AAPL ) in comparison to its top 4 peers with respect to the Debt-to-Equity ratio, the following information becomes apparent:

Among its top 4 peers, Apple ( AAPL ) is placed in the middle with a moderate debt-to-equity ratio of 1.87.

This implies a balanced financial structure, with a reasonable proportion of debt and equity.

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 a premium valuation relative to industry competitors. In terms of ROE, EBITDA, gross profit, and revenue growth, Apple ( AAPL ) demonstrates strong performance compared to its peers, reflecting favorable financial health and operational efficiency.

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