Amidst the fast-paced and highly competitive business environment of today, conducting comprehensive company analysis is essential for investors and industry enthusiasts. 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 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 33.92 38.59 9.21 52.0% $54.07 $69.23 15.65%
SanDisk Corp 40.57 12.75 13.66 8.2% $1.0 $1.54 61.25%
Seagate Technology Holdings PLC 68.97 148.86 14.87 96.27% $1.0 $1.45 10.16%
Western Digital Corp 25.82 15.11 13.79 27.66% $2.11 $1.38 25.24%
Everpure Inc 130.22 16.37 6.71 7.04% $0.15 $0.74 20.35%
NetApp Inc 18.81 19.10 3.39 31.16% $0.51 $1.21 4.39%
Super Micro Computer Inc 19.77 2.33 0.62 5.93% $0.55 $0.8 123.36%
Logitech International SA 20.86 6.24 3.11 11.36% $0.31 $0.61 6.06%
Diebold Nixdorf Inc 26.85 2.65 0.74 4.49% $0.11 $0.28 11.66%
Turtle Beach Corp 14.58 1.73 0.72 14.73% $0.02 $0.05 -18.69%
Immersion Corp 10.94 0.68 0.12 3.98% $0.06 $0.14 5.51%
Average 37.74 22.58 5.77 21.08% $0.58 $0.82 24.93%

Upon closer analysis of Apple, the following trends become apparent:

  • The stock's Price to Earnings ratio of 33.92 is lower than the industry average by 0.9x, suggesting potential value in the eyes of market participants.

  • It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 38.59 which exceeds the industry average by 1.71x.

  • The stock's relatively high Price to Sales ratio of 9.21, surpassing the industry average by 1.6x, may indicate an aspect of overvaluation in terms of sales performance.

  • The Return on Equity (ROE) of 52.0% is 30.92% above the industry average, highlighting efficient use of equity to generate profits.

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

  • With higher gross profit of $69.23 Billion, which indicates 84.43x 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 15.65% compared to the industry average of 24.93%, which indicates a challenging sales environment.

Debt To Equity Ratio

debt to equity

The debt-to-equity (D/E) ratio is an important measure to assess the financial structure and risk profile of a company.

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 terms of the Debt-to-Equity ratio, Apple can be assessed by comparing it to its top 4 peers, resulting in the following observations:

  • When compared to its top 4 peers, Apple has a moderate debt-to-equity ratio of 1.03.

  • This implies that the company maintains a balanced financial structure with a reasonable level of debt and an appropriate reliance on equity financing.

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 competitively within the industry sector.

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