In-Depth Analysis: Apple Versus Competitors In Technology Hardware, Storage & Peripherals Industry

In the ever-evolving and intensely competitive business landscape, conducting a thorough company analysis is of utmost importance for investors and industry followers. In this article, we will carry out an in-depth industry comparison, assessing Apple AAPL alongside its primary competitors in the Technology Hardware, Storage & Peripherals industry. By meticulously examining key financial metrics, market positioning, and growth prospects, we aim to offer valuable insights to 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 conducting an in-depth analysis of Apple, we can identify the following trends:

• With a Price to Earnings ratio of 31.23, which is 0.76x 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 47.91 relative to the industry average by 11.57x suggests company might be overvalued based on its book value.

• With a relatively high Price to Sales ratio of 7.9, which is 7.12x the industry average, the stock might be considered overvalued based on sales performance.

• The Return on Equity (ROE) of 37.5% is 34.25% above the industry average, highlighting efficient use of equity to generate profits.

• The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $30.65 Billion is 133.26x above the industry average, highlighting stronger profitability and robust cash flow generation.

• Compared to its industry, the company has higher gross profit of $40.43 Billion, which indicates 70.93x above the industry average, indicating stronger profitability and higher earnings from its core operations.

• With a revenue growth of -0.72%, which is much lower than the industry average of 1.93%, the company is experiencing a notable slowdown in sales expansion.

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.

In terms of the Debt-to-Equity ratio, Apple can be assessed by comparing it to its top 4 peers, resulting in the following observations:

• Apple falls in the middle of the list when considering the debt-to-equity ratio.

• This indicates that the company has a moderate level of debt relative to its equity with a debt-to-equity ratio of 1.79, suggesting a balanced financial structure with a reasonable debt-equitymix.

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, and gross profit ratios demonstrate its strong profitability and efficiency. However, the low revenue growth suggests that Apple's sales growth is slower compared to its industry peers.

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