In the dynamic and fiercely competitive business environment, conducting a thorough analysis of companies is crucial for investors and industry enthusiasts. In this article, we will perform an extensive industry comparison, evaluating Apple ( AAPL ) in relation to its major competitors in the Technology Hardware, Storage & Peripherals industry. By closely examining crucial financial metrics, market position, and growth prospects, we aim to offer 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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After thoroughly examining Apple ( AAPL ), the following trends can be inferred:

Notably, the current Price to Earnings ratio for this stock, 34.17, is 1.02x above the industry norm, reflecting a higher valuation relative to the industry.

The elevated Price to Book ratio of 48.43 relative to the industry average by 9.16x suggests company might be overvalued based on its book value.

The Price to Sales ratio of 8.32, which is 4.95x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

The company has a higher Return on Equity (ROE) of 58.74%, which is 50.21% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.

Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $45.91 Billion, which is 117.72x above the industry average, indicating stronger profitability and robust cash flow generation.

The gross profit of $58.27 Billion is 73.76x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.

The company's revenue growth of 3.95% is significantly lower compared to the industry average of 21.47%. This indicates a potential fall in the company's sales performance.

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

When compared to its top 4 peers, Apple ( AAPL ) has a moderate debt-to-equity ratio of 1.45.

This implies that the company maintains a balanced financial structure with a reasonable level of debt and an appropriate reliance on equity financing.

Key Takeaways

For Apple ( AAPL ) in the Technology Hardware, Storage & Peripherals industry, the PE, PB, and PS ratios are all high compared to its peers, indicating that the stock may be overvalued. On the other hand, Apple's ( AAPL ) high ROE, EBITDA, and gross profit suggest strong profitability and operational efficiency. However, the low revenue growth rate may be a concern for the company's future performance relative to its industry peers.

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