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 35.83 40.82 9.73 30.39% $39.32 $54.78 16.6%
SanDisk Corp 66.94 21.06 22.55 30.14% $4.15 $4.66 251.03%
Western Digital Corp 42.62 25.36 22.75 37.73% $3.49 $1.68 45.47%
Seagate Technology Holdings PLC 101.15 220.27 21.81 96.27% $1.0 $1.45 44.07%
Hewlett Packard Enterprise Co 45.05 2.52 1.67 1.71% $1.46 $3.34 18.42%
NetApp Inc 24.38 22.45 4.49 32.2% $0.59 $1.36 12.47%
Everpure Inc 110.11 16.75 6.41 1.67% $0.07 $0.72 35.25%
IonQ Inc 140.23 4.10 92.35 17.93% $-0.23 $0.02 754.72%
Super Micro Computer Inc 14.62 2.37 0.55 6.64% $0.7 $1.02 122.68%
Logitech International SA 22.07 6.88 3.24 6.31% $0.16 $0.48 7.44%
Diebold Nixdorf Inc 27.89 2.74 0.77 0.47% $0.07 $0.21 6.03%
Corsair Gaming Inc 94.22 1.40 0.62 1.85% $0.03 $0.12 -4.12%
Turtle Beach Corp 624 2.21 0.85 -12.65% $-0.01 $0.01 -34.0%
Average 109.44 27.34 14.84 18.36% $0.96 $1.26 104.96%

By analyzing Apple, we can infer the following trends:

  • The stock's Price to Earnings ratio of 35.83 is lower than the industry average by 0.33x, suggesting potential value in the eyes of market participants.

  • With a Price to Book ratio of 40.82, which is 1.49x 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 9.73, which is 0.66x the industry average. This suggests a possible undervaluation based on sales performance.

  • With a Return on Equity (ROE) of 30.39% that is 12.03% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.

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

  • With higher gross profit of $54.78 Billion, which indicates 43.48x 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 16.6% compared to the industry average of 104.96%, 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 stands in comparison with its top 4 peers, leading to the following comparisons:

  • Apple exhibits a stronger financial position compared to its top 4 peers in the sector, as indicated by its lower debt-to-equity ratio of 0.8.

  • This suggests that the company has a more favorable balance between debt and equity, which can be seen as a positive aspect for 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. With a low PS ratio, Apple's sales are relatively inexpensive. Apple's high ROE, EBITDA, and gross profit reflect strong profitability. However, the low revenue growth may raise concerns about future performance compared to industry peers.

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