Assessing Apple's Performance Against Competitors In Technology Hardware, Storage & Peripherals Industry

In today's rapidly changing and highly competitive business world, it is vital for investors and industry enthusiasts to carefully assess companies. In this article, we will perform a comprehensive industry comparison, evaluating Apple AAPL against its key competitors in the Technology Hardware, Storage & Peripherals industry. By analyzing important financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.

Apple Background

Apple designs a wide variety of consumer electronic devices, including smartphones (iPhone), tablets (iPad), PCs (Mac), smartwatches (Apple Watch), and AirPods, among others. In addition, Apple offers its customers a variety of services such as Apple Music, iCloud, Apple Care, Apple TV+, Apple Arcade, Apple Fitness, Apple Card, and Apple Pay, among others. Apple's products include internally developed software and semiconductors, and the firm is well known for its integration of hardware, software, semiconductors, and services. Apple's products are distributed online as well as through company-owned stores and third-party retailers.

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

• The stock's Price to Earnings ratio of 30.03 is lower than the industry average by 0.45x, suggesting potential value in the eyes of market participants.

• The elevated Price to Book ratio of 46.43 relative to the industry average by 10.01x suggests company might be overvalued based on its book value.

• With a relatively high Price to Sales ratio of 7.42, which is 6.08x the industry average, the stock might be considered overvalued based on sales performance.

• The company has a higher Return on Equity (ROE) of 32.48%, which is 28.15% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.

• With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $26.78 Billion, which is 103.0x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.

• The gross profit of $36.41 Billion is 62.78x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.

• With a revenue growth of -1.4%, which is much lower than the industry average of 14.09%, the company is experiencing a notable slowdown in sales expansion.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio provides insights into the proportion of debt a company has in relation to its equity and asset value.

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.

In light of the Debt-to-Equity ratio, a comparison between Apple and its top 4 peers reveals the following information:

• In terms of the debt-to-equity ratio, Apple is positioned in the middle among its top 4 peers.

• This suggests a relatively balanced financial structure, where the company maintains a moderate level of debt while also utilizing equity financing with a debt-to-equity ratio of 1.81.

Key Takeaways

Apple's low PE ratio suggests that it is undervalued compared to its peers in the Technology Hardware, Storage & Peripherals industry. The high PB and PS ratios indicate that the market is willing to pay a premium for Apple's assets and sales. Apple's high ROE, EBITDA, gross profit, and low revenue growth suggest that it is efficiently utilizing its resources and generating strong profits. Overall, Apple's valuation analysis indicates that it is a financially sound company with potential for growth in the industry.

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