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 is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple's iPhone makes up a majority of the firm sales, and Apple's other products like Mac, iPad, and Watch are designed around the iPhone as the focal point of an expansive software ecosystem. Apple 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 sales come directly through its flagship stores, with a majority of sales coming indirectly through partnerships and distribution.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Apple Inc | 36.95 | 52.39 | 9 | 58.74% | $45.91 | $58.27 | 3.95% |
| Hewlett Packard Enterprise Co | 10.79 | 1.10 | 0.92 | 5.72% | $1.44 | $2.61 | 15.06% |
| NetApp Inc | 22.36 | 27.67 | 3.97 | 32.84% | $0.44 | $1.18 | 6.15% |
| Pure Storage Inc | 175.26 | 15.81 | 7.91 | 4.44% | $0.11 | $0.58 | 8.94% |
| Western Digital Corp | 18.44 | 1.83 | 1.40 | 4.89% | $0.96 | $1.52 | 41.33% |
| Super Micro Computer Inc | 14.51 | 3.12 | 1.18 | 6.68% | $0.4 | $0.6 | 37.87% |
| Eastman Kodak Co | 10.99 | 0.63 | 0.67 | 1.34% | $0.04 | $0.04 | -2.97% |
| Turtle Beach Corp | 55.74 | 3.41 | 1.03 | 3.3% | $0.01 | $0.03 | 59.51% |
| AstroNova Inc | 21.88 | 0.91 | 0.55 | 0.26% | $0.0 | $0.01 | 7.65% |
| Average | 41.25 | 6.81 | 2.2 | 7.43% | $0.42 | $0.82 | 21.69% |
By conducting a comprehensive analysis of Apple, the following trends become evident:
-
With a Price to Earnings ratio of 36.95, which is 0.9x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.
-
The elevated Price to Book ratio of 52.39 relative to the industry average by 7.69x suggests company might be overvalued based on its book value.
-
The Price to Sales ratio of 9.0, which is 4.09x 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 58.74% that is 51.31% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.
-
With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $45.91 Billion, which is 109.31x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.
-
The gross profit of $58.27 Billion is 71.06x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
-
The company is witnessing a substantial decline in revenue growth, with a rate of 3.95% compared to the industry average of 21.69%, which indicates a challenging sales environment.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations.
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.
By considering the Debt-to-Equity ratio, Apple can be compared to its top 4 peers, leading to the following observations:
-
When compared to its top 4 peers, Apple 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 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 is efficiently utilizing its resources and generating strong profits, but may be facing challenges in revenue expansion. Overall, Apple's financial performance is solid, but there may be room for improvement in revenue growth to align with industry trends.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
