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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Upon a comprehensive analysis of Apple ( AAPL ), the following trends can be discerned:

The Price to Earnings ratio of 36.79 is 0.72x lower than the industry average, indicating potential undervaluation for the stock.

It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 59.06 which exceeds the industry average by 8.18x.

The stock's relatively high Price to Sales ratio of 8.81, surpassing the industry average by 3.72x, may indicate an aspect of overvaluation in terms of sales performance.

The Return on Equity (ROE) of 23.83% is 16.47% above the industry average, highlighting efficient use of equity to generate profits.

The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $32.5 Billion is 79.27x above the industry average, highlighting stronger profitability and robust cash flow generation.

The company has higher gross profit of $43.88 Billion, which indicates 53.51x above the industry average, indicating stronger profitability and higher earnings from its core operations.

The company's revenue growth of 6.07% is significantly lower compared to the industry average of 22.64%. This indicates a potential fall in the company's sales performance.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio assesses the extent to which a company relies on borrowed funds compared to its equity.

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:

Compared to its top 4 peers, Apple ( AAPL ) has a moderate debt-to-equity ratio of 1.87, indicating a balanced financial structure.

This suggests that the company maintains a reasonable level of debt while also leveraging equity financing.

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.