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 35.08 41.53 9.69 27.84% $39.02 $54.77 16.36%
Seagate Technology Holdings PLC 70.03 101.81 18.28 79.34% $1.64 $1.9 48.49%
Western Digital Corp 20.96 19.79 15.08 34.46% $3.49 $1.68 12.29%
Hewlett Packard Enterprise Co 54.87 3.07 2.03 2.38% $1.7 $3.9 40.0%
NetApp Inc 32.61 30.08 6.01 32.2% $0.59 $1.36 12.47%
Everpure Inc 179.03 27.24 10.42 1.67% $0.07 $0.72 35.25%
Super Micro Computer Inc 20.97 3.40 0.79 6.64% $0.7 $1.02 122.68%
Logitech International SA 18.91 6.28 3.08 10.33% $0.28 $0.61 6.93%
Diebold Nixdorf Inc 24.19 2.56 0.68 1.56% $0.09 $0.24 1.7%
Corsair Gaming Inc 41.85 2.11 0.96 1.04% $0.02 $0.1 -1.8%
Immersion Corp 53.54 0.84 0.14 1.26% $0.02 $1.36 -5.22%
Average 51.7 19.72 5.75 17.09% $0.86 $1.29 27.28%

When conducting a detailed analysis of Apple, the following trends become clear:

  • The stock's Price to Earnings ratio of 35.08 is lower than the industry average by 0.68x, suggesting potential value in the eyes of market participants.

  • The elevated Price to Book ratio of 41.53 relative to the industry average by 2.11x suggests company might be overvalued based on its book value.

  • With a relatively high Price to Sales ratio of 9.69, which is 1.69x the industry average, the stock might be considered overvalued based on sales performance.

  • The Return on Equity (ROE) of 27.84% is 10.75% above the industry average, highlighting efficient use of equity to generate profits.

  • The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $39.02 Billion, which is 45.37x above the industry average, indicating stronger profitability and robust cash flow generation.

  • Compared to its industry, the company has higher gross profit of $54.77 Billion, which indicates 42.46x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • With a revenue growth of 16.36%, which is much lower than the industry average of 27.28%, the company is experiencing a notable slowdown in sales expansion.

Debt To Equity Ratio

debt to equity

The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage 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.

When examining Apple in comparison to its top 4 peers with respect to the Debt-to-Equity ratio, the following information becomes apparent:

  • 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 0.78.

  • 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 PB and PS ratios are high, suggesting overvaluation relative to industry standards. Apple's high ROE, EBITDA, and gross profit signify strong profitability, while the low revenue growth implies slower expansion compared to industry peers.

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