Amidst today's fast-paced and highly competitive business environment, it is crucial for investors and industry enthusiasts to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating Apple (NASDAQ:AAPL) in comparison to its major competitors within the Technology Hardware, Storage & Peripherals industry. By analyzing critical financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of 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 accounts for the majority of the firm's sales, and Apple's other products, such as the 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, such as streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors and works with subcontractors such as Foxconn and TSMC to build its products and chips. Slightly less than half of Apple's sales come directly through its flagship stores, with the majority 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 37.27 44.11 10.29 27.84% $39.02 $54.77 16.36%
SanDisk Corp 21.06 14.45 11.89 46.78% $7.89 $7.58 371.59%
Seagate Technology Holdings PLC 58.17 84.56 15.18 79.34% $1.64 $1.9 48.49%
Western Digital Corp 16.68 18.26 13.31 34.3% $3.36 $2.03 43.84%
Hewlett Packard Enterprise Co 48.44 2.71 1.79 2.38% $1.7 $3.9 40.0%
NetApp Inc 25.53 23.73 4.90 32.2% $0.59 $1.36 12.47%
Everpure Inc 126.62 19.94 7.52 4.97% $0.07 $0.72 12.63%
Super Micro Computer Inc 11.35 2.37 0.66 12.83% $1.57 $1.94 93.16%
Logitech International SA 18.19 6.04 2.97 10.33% $0.28 $0.61 6.93%
Diebold Nixdorf Inc 22.39 2.37 0.63 1.56% $0.09 $0.24 1.7%
Corsair Gaming Inc 39.03 1.97 0.90 1.04% $0.02 $0.1 -1.8%
Immersion Corp 53.86 0.84 0.14 1.26% $0.02 $1.36 -5.22%
Average 40.12 16.11 5.44 20.64% $1.57 $1.98 56.71%

When analyzing Apple, the following trends become evident:

  • The stock's Price to Earnings ratio of 37.27 is lower than the industry average by 0.93x, suggesting potential value in the eyes of market participants.

  • The elevated Price to Book ratio of 44.11 relative to the industry average by 2.74x suggests company might be overvalued based on its book value.

  • The Price to Sales ratio of 10.29, which is 1.89x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

  • The Return on Equity (ROE) of 27.84% is 7.2% 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 $39.02 Billion, which is 24.85x above the industry average, implying stronger profitability and robust cash flow generation.

  • With higher gross profit of $54.77 Billion, which indicates 27.66x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.

  • The company is witnessing a substantial decline in revenue growth, with a rate of 16.36% compared to the industry average of 56.71%, which indicates a challenging sales environment.

Debt To Equity Ratio

debt to equity

The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations.

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 0.78, 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 and PS ratios suggest a premium valuation based on book value and sales. In terms of profitability, Apple's high ROE, EBITDA, and gross profit margins outperform industry peers, reflecting strong operational efficiency. However, the low revenue growth rate may indicate challenges in expanding market share compared to competitors.

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