4AAPL : Evaluating Apple Against Peers In Technology Hardware, Storage

In today’s rapidly changing and fiercely competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies. In this article, we will conduct a comprehensive industry comparison, evaluating Apple AAPL against its key competitors in the Technology Hardware, Storage & Peripherals industry. By examining key financial metrics, market position, and growth prospects, we aim to provide valuable insights for 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 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.

When closely examining Apple, the following trends emerge:

• The Price to Earnings ratio of 35.04 is 0.88x lower than the industry average, indicating potential undervaluation for the stock.

• With a Price to Book ratio of 52.05, which is 6.49x 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 stock’s relatively high Price to Sales ratio of 8.53, surpassing the industry average by 3.16x, may indicate an aspect of overvaluation in terms of sales performance.

• The Return on Equity (ROE) of 35.34% is 29.55% above the industry average, highlighting efficient use of equity to generate profits.

• With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $31.03 Billion, which is 100.1x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.

• With higher gross profit of $43.72 Billion, which indicates 52.05x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.

• The company is experiencing remarkable revenue growth, with a rate of 9.63%, outperforming the industry average of 8.12%.

Debt To Equity Ratio

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.

By analyzing Apple in relation to its top 4 peers based on the Debt-to-Equity ratio, the following insights can be derived:

• Among its top 4 peers, Apple is placed in the middle with a moderate debt-to-equity ratio of 1.54.

• This implies a balanced financial structure, with a reasonable proportion of debt and equity.

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 revenue growth suggest that Apple is performing exceptionally well in terms of profitability and operational efficiency within the industry sector.

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