In the fast-paced and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Apple ( AAPL ) in comparison to its major competitors within the Technology Hardware, Storage & Peripherals industry. By analyzing crucial financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of 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 conducting a comprehensive analysis of Apple ( AAPL ), the following trends become evident:

A Price to Earnings ratio of 41.48 significantly below the industry average by 0.92x suggests undervaluation. This can make the stock appealing for those seeking growth.

The elevated Price to Book ratio of 66.94 relative to the industry average by 10.28x suggests company might be overvalued based on its book value.

The Price to Sales ratio of 9.94, which is 4.71x 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 23.83% that is 16.47% above the industry average, it appears that the company exhibits 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.

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 below the industry average of 22.62%. This suggests a potential struggle in generating increased sales volume.

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 assessing Apple ( AAPL ) against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:

Apple ( AAPL ) holds a middle position in terms of the debt-to-equity ratio compared to its top 4 peers.

This indicates a balanced financial structure with a moderate level of debt and an appropriate reliance on equity financing with a debt-to-equity ratio of 1.87.

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, but may be facing challenges in revenue expansion.

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