In the ever-changing and fiercely competitive business landscape, conducting thorough company analysis is crucial for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Apple (NASDAQ:AAPL) and its primary competitors in the Technology Hardware, Storage & Peripherals industry. By closely examining key financial metrics, market position, and growth prospects, our aim is 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 36.51 41.59 9.91 30.39% $39.32 $54.78 16.6%
SanDisk Corp 56.12 17.65 18.90 30.14% $4.15 $4.66 251.03%
Seagate Technology Holdings PLC 83.19 181.16 17.94 96.27% $1.0 $1.45 44.07%
Western Digital Corp 31.53 18.76 16.83 37.73% $3.49 $1.68 45.47%
Hewlett Packard Enterprise Co 46.61 2.61 1.73 1.71% $1.46 $3.34 18.42%
NetApp Inc 26.82 24.70 4.94 32.2% $0.51 $1.21 13.72%
Super Micro Computer Inc 23.15 3.49 0.87 6.64% $0.7 $1.02 122.68%
Everpure Inc 111.77 17 6.51 1.67% $0.15 $0.74 -0.57%
IonQ Inc 161.03 4.71 106.04 17.93% $-0.23 $0.02 754.72%
Logitech International SA 23.61 7.36 3.47 6.31% $0.16 $0.48 7.44%
Diebold Nixdorf Inc 28.02 2.75 0.77 0.47% $0.07 $0.21 6.03%
Corsair Gaming Inc 96.39 1.43 0.63 1.85% $0.03 $0.12 -4.12%
Turtle Beach Corp 648.75 2.30 0.88 -12.65% $-0.01 $0.01 -34.0%
Average 111.42 23.66 14.96 18.36% $0.96 $1.24 102.07%

By conducting a comprehensive analysis of Apple, the following trends become evident:

  • The Price to Earnings ratio of 36.51 is 0.33x lower than the industry average, indicating potential undervaluation for the stock.

  • With a Price to Book ratio of 41.59, which is 1.76x 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 Price to Sales ratio is 9.91, which is 0.66x the industry average. This suggests a possible undervaluation based on sales performance.

  • The Return on Equity (ROE) of 30.39% is 12.03% above the industry average, highlighting efficient use of equity to generate profits.

  • The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $39.32 Billion, which is 40.96x above the industry average, implying stronger profitability and robust cash flow generation.

  • Compared to its industry, the company has higher gross profit of $54.78 Billion, which indicates 44.18x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • With a revenue growth of 16.6%, which is much lower than the industry average of 102.07%, the company is experiencing a notable slowdown in sales expansion.

Debt To Equity Ratio

debt to equity

The debt-to-equity (D/E) ratio assesses the extent to which a company relies on borrowed funds compared to its equity.

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 evaluating Apple alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:

  • Apple demonstrates a stronger financial position compared to its top 4 peers in the sector.

  • With a lower debt-to-equity ratio of 0.8, the company relies less on debt financing and maintains a healthier balance between debt and equity, which can be viewed positively by investors.

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 ratio suggests the market values Apple's assets highly. A low PS ratio implies that investors are paying less for each dollar of Apple's sales. Apple's high ROE, EBITDA, and gross profit reflect strong profitability and operational efficiency. However, the low revenue growth may raise concerns about Apple's future performance compared to industry peers.

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