In today's fast-paced and highly competitive business world, it is crucial for investors and industry followers to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating Apple (NASDAQ:AAPL) in relation to its major competitors in the Technology Hardware, Storage & Peripherals industry. By closely examining key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and highlight company's performance in 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 33.51 38.18 9.10 52.0% $39.32 $54.78 15.65%
SanDisk Corp 42.92 13.50 14.46 8.2% $4.15 $4.66 61.25%
Seagate Technology Holdings PLC 70.07 151.23 15.11 96.27% $1.0 $1.45 10.16%
Western Digital Corp 26.47 15.75 14.13 27.66% $3.49 $1.68 25.24%
Everpure Inc 132.27 16.71 6.81 7.04% $0.15 $0.74 20.35%
NetApp Inc 18.61 18.90 3.36 31.16% $0.51 $1.21 4.39%
Super Micro Computer Inc 20.38 2.40 0.64 5.93% $0.55 $0.8 123.36%
Logitech International SA 21.28 6.37 3.18 11.36% $0.31 $0.61 6.06%
Diebold Nixdorf Inc 26.42 2.59 0.73 4.49% $0.07 $0.21 11.66%
Turtle Beach Corp 15.30 1.82 0.75 14.73% $0.02 $0.05 -18.69%
Average 41.52 25.47 6.57 22.98% $1.14 $1.27 27.09%

Through an analysis of Apple, we can infer the following trends:

  • At 33.51, the stock's Price to Earnings ratio is 0.81x less than the industry average, suggesting favorable growth potential.

  • The elevated Price to Book ratio of 38.18 relative to the industry average by 1.5x suggests company might be overvalued based on its book value.

  • With a relatively high Price to Sales ratio of 9.1, which is 1.39x the industry average, the stock might be considered overvalued based on sales performance.

  • The company has a higher Return on Equity (ROE) of 52.0%, which is 29.02% 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 $39.32 Billion is 34.49x above the industry average, highlighting stronger profitability and robust cash flow generation.

  • The company has higher gross profit of $54.78 Billion, which indicates 43.13x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • With a revenue growth of 15.65%, which is much lower than the industry average of 27.09%, the company is experiencing a notable slowdown in sales expansion.

Debt To Equity Ratio

debt to equity

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.

When comparing Apple with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:

  • In the context of the debt-to-equity ratio, Apple holds a middle position among its top 4 peers.

  • This indicates a moderate level of debt relative to its equity with a debt-to-equity ratio of 1.03, which implies a relatively balanced financial structure with a reasonable debt-equity mix.

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 efficiently utilizing its resources and generating strong profits, despite slower revenue growth. Overall, Apple's financial performance is solid, with room for potential growth in the future.

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