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 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 35.48 41.99 9.79 27.84% $39.02 $54.77 16.36%
SanDisk Corp 48.79 15.35 16.43 30.14% $4.15 $4.66 251.03%
Seagate Technology Holdings PLC 60.82 88.55 15.87 79.34% $1.0 $1.45 16.61%
Western Digital Corp 32.83 19.53 17.53 37.73% $3.49 $1.68 45.47%
Hewlett Packard Enterprise Co 48.96 2.74 1.81 2.38% $1.7 $3.9 40.0%
NetApp Inc 29.99 27.66 5.53 32.2% $0.59 $1.36 12.47%
Everpure Inc 127.15 19.34 7.40 1.67% $0.07 $0.72 35.25%
Super Micro Computer Inc 16.68 2.71 0.63 6.64% $0.7 $1.02 122.68%
Logitech International SA 19.99 6.63 3.26 10.33% $0.28 $0.61 6.93%
IonQ Inc 106.97 3.13 70.45 17.93% $-0.23 $0.02 754.72%
Diebold Nixdorf Inc 25.44 2.69 0.72 1.56% $0.09 $0.24 1.7%
Corsair Gaming Inc 126.33 1.88 0.83 1.85% $0.03 $0.12 -4.12%
Turtle Beach Corp 697 2.47 0.94 -12.65% $-0.01 $0.01 -34.0%
Average 111.75 16.06 11.78 17.43% $0.99 $1.32 104.06%

Upon analyzing Apple, the following trends can be observed:

  • The Price to Earnings ratio of 35.48 is 0.32x lower than the industry average, indicating potential undervaluation for the stock.

  • The elevated Price to Book ratio of 41.99 relative to the industry average by 2.61x suggests company might be overvalued based on its book value.

  • Based on its sales performance, the stock could be deemed undervalued with a Price to Sales ratio of 9.79, which is 0.83x the industry average.

  • The company has a higher Return on Equity (ROE) of 27.84%, which is 10.41% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.

  • The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $39.02 Billion, which is 39.41x above the industry average, indicating stronger profitability and robust cash flow generation.

  • With higher gross profit of $54.77 Billion, which indicates 41.49x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.

  • The company's revenue growth of 16.36% is significantly lower compared to the industry average of 104.06%. This indicates a potential fall in the company's sales performance.

Debt To Equity Ratio

debt to equity

The debt-to-equity (D/E) ratio is a measure that indicates the level of debt a company has taken on relative to the value of its assets net of liabilities.

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 assessing Apple against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:

  • Among its top 4 peers, Apple has a stronger financial position with a lower debt-to-equity ratio of 0.78.

  • This indicates that the company relies less on debt financing and maintains a more favorable 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 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 indicate challenges in expanding market share.

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