In today's rapidly evolving and fiercely competitive business landscape, it is crucial for investors and industry analysts to conduct comprehensive company evaluations. In this article, we will undertake an in-depth industry comparison, assessing Apple (NASDAQ:AAPL) alongside its primary competitors in the Technology Hardware, Storage & Peripherals industry. By meticulously examining crucial financial indicators, market positioning, and growth potential, we aim to provide valuable insights to 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 33.69 44.31 9.12 52.0% $54.07 $69.23 15.65%
Western Digital Corp 36.28 18.30 13.21 27.66% $2.11 $1.38 25.24%
Seagate Technology Holdings PLC 63.27 273.27 12.36 299.49% $0.85 $1.18 21.51%
Everpure Inc 125.76 15.81 6.48 7.04% $0.15 $0.74 20.35%
NetApp Inc 18.76 19.05 3.38 31.16% $0.51 $1.21 4.39%
Super Micro Computer Inc 20.75 2.44 0.66 5.93% $0.55 $0.8 123.36%
Logitech International SA 20.58 6.16 3.07 11.36% $0.31 $0.61 6.06%
Diebold Nixdorf Inc 33.27 2.67 0.83 4.49% $0.11 $0.28 11.66%
Turtle Beach Corp 15.05 1.77 0.74 14.73% $0.02 $0.05 -18.69%
Immersion Corp 11.12 0.70 0.13 3.98% $0.06 $0.14 5.51%
Average 38.32 37.8 4.54 45.09% $0.52 $0.71 22.15%

By analyzing Apple, we can infer the following trends:

  • With a Price to Earnings ratio of 33.69, which is 0.88x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.

  • The elevated Price to Book ratio of 44.31 relative to the industry average by 1.17x suggests company might be overvalued based on its book value.

  • The Price to Sales ratio of 9.12, which is 2.01x 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 52.0% is 6.91% 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 103.98x above the industry average, indicating stronger profitability and robust cash flow generation.

  • With higher gross profit of $69.23 Billion, which indicates 97.51x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.

  • The company's revenue growth of 15.65% is significantly below the industry average of 22.15%. This suggests a potential struggle in generating increased sales volume.

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. Overall, Apple's strong profitability metrics outweigh the lower revenue growth, positioning it favorably within the industry sector.

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