Market Analysis: Apple And Competitors In Technology Hardware, Storage & Peripherals Industry

In today's rapidly evolving and fiercely competitive business landscape, it is crucial for investors and industry analysts to conduct comprehensive company evaluations. In this article, we will undertake an in-depth industry comparison, assessing Apple AAPL alongside its primary competitors in the Technology Hardware, Storage & Peripherals industry. By meticulously examining crucial financial indicators, market positioning, and growth potential, we aim to provide valuable insights to investors and shed light on company's performance within 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 26.19 35.10 6.86 49.79% $43.22 $54.85 2.07%
Super Micro Computer Inc 72.62 17.66 5.72 11.29% $0.37 $0.56 103.25%
Hewlett Packard Enterprise Co 12.51 1.10 0.85 1.82% $1.23 $2.46 -13.5%
NetApp Inc 24.10 21.97 3.66 35.49% $0.46 $1.15 5.24%
Pure Storage Inc 282.89 13.75 6.32 5.41% $0.11 $0.57 -2.52%
Corsair Gaming Inc 398.67 1.85 0.87 0.94% $0.03 $0.1 4.65%
Eastman Kodak Co 7.88 0.45 0.43 0.21% $0.03 $0.05 -9.84%
AstroNova Inc 28.48 1.48 0.91 3.06% $0.0 $0.01 5.45%
Transact Technologies Inc 10.65 1.27 0.69 -0.16% $0.0 $0.01 -26.13%
Average 104.72 7.44 2.43 7.26% $0.28 $0.61 8.33%

Through a detailed examination of Apple, we can deduce the following trends:

  • With a Price to Earnings ratio of 26.19, which is 0.25x 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 35.1 relative to the industry average by 4.72x suggests company might be overvalued based on its book value.

  • With a relatively high Price to Sales ratio of 6.86, which is 2.82x the industry average, the stock might be considered overvalued based on sales performance.

  • The company has a higher Return on Equity (ROE) of 49.79%, which is 42.53% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.

  • The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $43.22 Billion is 154.36x above the industry average, highlighting stronger profitability and robust cash flow generation.

  • The company has higher gross profit of $54.85 Billion, which indicates 89.92x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • The company's revenue growth of 2.07% is significantly below the industry average of 8.33%. This suggests a potential struggle in generating increased sales volume.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is an important measure to assess the financial structure and risk profile of a company.

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 in comparison to its top 4 peers with respect to the Debt-to-Equity ratio, the following information becomes apparent:

  • 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 1.46, suggesting a balanced financial structure with a reasonable debt-equitymix.

Key Takeaways

For Apple in the Technology Hardware, Storage & Peripherals industry, the PE ratio is low compared to peers, indicating potential undervaluation. The high PB and PS ratios suggest a premium valuation based on assets and sales. In terms of ROE, EBITDA, and gross profit, Apple demonstrates strong performance relative to industry peers. However, the low revenue growth rate may raise concerns about future prospects compared to competitors.

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

Market News and Data brought to you by Benzinga APIs
Posted In: NewsMarketsTrading IdeasBZI-IA
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!