In the ever-evolving and intensely competitive business landscape, conducting a thorough company analysis is of utmost importance for investors and industry followers. In this article, we will carry out an in-depth industry comparison, assessing Apple (NASDAQ:AAPL) alongside its primary competitors in the Technology Hardware, Storage & Peripherals industry. By meticulously examining key financial metrics, market positioning, and growth prospects, we aim to offer 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 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 37.36 42.57 10.14 30.39% $39.32 $54.78 16.6%
SanDisk Corp 59.64 18.76 20.09 30.14% $4.15 $4.66 251.03%
Seagate Technology Holdings PLC 77.81 169.46 16.78 96.27% $1.0 $1.45 44.07%
Western Digital Corp 32.26 19.19 17.22 37.73% $3.49 $1.68 45.47%
Hewlett Packard Enterprise Co 38.53 2.16 1.43 2.38% $1.7 $3.9 40.0%
NetApp Inc 24.28 22.36 4.47 32.2% $0.59 $1.36 12.47%
Everpure Inc 110.17 16.76 6.41 1.67% $0.07 $0.72 35.25%
IonQ Inc 125.95 3.68 82.94 17.93% $-0.23 $0.02 754.72%
Super Micro Computer Inc 14.33 2.32 0.54 6.64% $0.7 $1.02 122.68%
Logitech International SA 19.58 6.10 2.88 6.31% $0.16 $0.48 7.44%
Diebold Nixdorf Inc 28.68 2.82 0.79 0.47% $0.07 $0.21 6.03%
Corsair Gaming Inc 98.89 1.47 0.65 1.85% $0.03 $0.12 -4.12%
Turtle Beach Corp 628.25 2.23 0.85 -12.65% $-0.01 $0.01 -34.0%
Average 104.86 22.28 12.92 18.41% $0.98 $1.3 106.75%

Upon analyzing Apple, the following trends can be observed:

  • At 37.36, the stock's Price to Earnings ratio is 0.36x less than the industry average, suggesting favorable growth potential.

  • With a Price to Book ratio of 42.57, which is 1.91x 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.

  • With a relatively low Price to Sales ratio of 10.14, which is 0.78x the industry average, the stock might be considered undervalued based on sales performance.

  • With a Return on Equity (ROE) of 30.39% that is 11.98% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.

  • Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $39.32 Billion, which is 40.12x above the industry average, indicating stronger profitability and robust cash flow generation.

  • With higher gross profit of $54.78 Billion, which indicates 42.14x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.

  • The company's revenue growth of 16.6% is significantly below the industry average of 106.75%. This suggests a potential struggle in generating increased sales volume.

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.

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 comparing the debt-to-equity ratio, Apple is in a stronger financial position compared to its top 4 peers.

  • The company has a lower level of debt relative to its equity, indicating a more favorable balance between the two with a lower debt-to-equity ratio of 0.8.

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.