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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By closely examining Apple ( AAPL ), we can identify the following trends:

The current Price to Earnings ratio of 34.59 is 1.15x higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 49.03 which exceeds the industry average by 10.07x.

With a relatively high Price to Sales ratio of 8.42, which is 5.5x the industry average, the stock might be considered overvalued based on sales performance.

The Return on Equity (ROE) of 58.74% is 50.21% above the industry average, highlighting efficient use of equity to generate profits.

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

Compared to its industry, the company has higher gross profit of $58.27 Billion, which indicates 73.76x above the industry average, indicating stronger profitability and higher earnings from its core operations.

The company's revenue growth of 3.95% is significantly below the industry average of 22.16%. This suggests a potential struggle in generating increased sales volume.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio gauges the extent to which a company has financed its operations through debt relative to 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 examining Apple ( AAPL ) in comparison to its top 4 peers with respect to the Debt-to-Equity ratio, the following information becomes apparent:

When evaluating the debt-to-equity ratio, Apple ( AAPL ) is in the middle position among its top 4 peers.

The company maintains a moderate level of debt relative to its equity with a debt-to-equity ratio of 1.45, suggesting a relatively balanced financial structure.

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, gross profit, and low revenue growth suggest strong profitability and operational efficiency relative to its industry competitors.

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