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

In today's rapidly changing and fiercely competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies. In this article, we will conduct a comprehensive industry comparison, evaluating Apple (NASDAQ:AAPL) against its key competitors in the Technology Hardware, Storage & Peripherals industry. By examining key 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 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.

By closely studying Apple, we can observe the following trends:

• A Price to Earnings ratio of 39.87 significantly below the industry average by 0.75x suggests undervaluation. This can make the stock appealing for those seeking growth.

• The elevated Price to Book ratio of 59.24 relative to the industry average by 5.8x suggests company might be overvalued based on its book value.

• The stock's relatively high Price to Sales ratio of 9.71, surpassing the industry average by 2.76x, may indicate an aspect of overvaluation in terms of sales performance.

• With a Return on Equity (ROE) of 35.34% that is 29.55% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.

• The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $31.03 Billion is 86.19x above the industry average, highlighting stronger profitability and robust cash flow generation.

• The company has higher gross profit of $43.72 Billion, which indicates 47.01x above the industry average, indicating stronger profitability and higher earnings from its core operations.

• With a revenue growth of 9.63%, which surpasses the industry average of 7.09%, the company is demonstrating robust sales expansion and gaining market share.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is a key indicator of a company's financial health and its reliance on debt financing.

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:

• When compared to its top 4 peers, Apple has a moderate debt-to-equity ratio of 1.54.

• 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 revenue growth suggest that Apple is performing exceptionally well in terms of profitability and operational efficiency within the industry sector.

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