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.

Company P/E P/B P/S ROE EBITDA (in billions) Gross Profit (in billions) Revenue Growth
Apple Inc 32.39 42.60 8.77 52.0% $54.07 $69.23 15.65%
Western Digital Corp 27.88 14.06 10.15 27.66% $2.11 $1.38 25.24%
Seagate Technology Holdings PLC 48.52 209.56 9.48 299.49% $0.85 $1.18 21.51%
Everpure Inc 113.60 14.28 5.85 7.04% $0.15 $0.74 20.35%
NetApp Inc 17.34 17.61 3.13 31.16% $0.51 $1.21 4.39%
Super Micro Computer Inc 16.95 1.99 0.54 5.93% $0.55 $0.8 123.36%
Logitech International SA 19.28 5.77 2.88 11.36% $0.31 $0.61 6.06%
Diebold Nixdorf Inc 30.44 2.47 0.76 4.49% $0.11 $0.28 11.66%
Turtle Beach Corp 13.19 1.55 0.65 14.73% $0.02 $0.05 -18.69%
Average 35.9 33.41 4.18 50.23% $0.58 $0.78 24.23%

When conducting a detailed analysis of Apple, the following trends become clear:

  • A Price to Earnings ratio of 32.39 significantly below the industry average by 0.9x suggests undervaluation. This can make the stock appealing for those seeking growth.

  • With a Price to Book ratio of 42.6, which is 1.28x the industry average, Apple might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.

  • The stock's relatively high Price to Sales ratio of 8.77, surpassing the industry average by 2.1x, may indicate an aspect of overvaluation in terms of sales performance.

  • The Return on Equity (ROE) of 52.0% is 1.77% above the industry average, highlighting efficient use of equity to generate profits.

  • Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $54.07 Billion, which is 93.22x above the industry average, indicating stronger profitability and robust cash flow generation.

  • The gross profit of $69.23 Billion is 88.76x 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 15.65% compared to the industry average of 24.23%, which indicates a challenging sales environment.

Debt To Equity Ratio

debt to equity

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.

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

  • When evaluating the debt-to-equity ratio, Apple is in the middle position among its top 4 peers.

  • The company maintains a moderate level of debt relative to its equity with a debt-to-equity ratio of 1.03, suggesting a relatively balanced financial structure.

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 performing well financially but may face challenges in revenue expansion.

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