Investigating Apple's Standing In Technology Hardware, Storage & Peripherals Industry Compared To Competitors
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 | 35.52 | 52.77 | 8.65 | 35.34% | $31.03 | $43.72 | 9.63% |
| Western Digital Corp | 21.95 | 6.38 | 3.68 | 5.21% | $0.51 | $1.07 | 29.99% |
| Hewlett Packard Enterprise Co | 29.09 | 1.34 | 1 | 1.14% | $1.11 | $2.67 | 18.5% |
| Pure Storage Inc | 201.69 | 20.40 | 8.37 | 3.68% | $0.04 | $0.54 | 10.6% |
| Super Micro Computer Inc | 26.79 | 4.24 | 1.29 | 3.08% | $0.26 | $0.54 | 7.51% |
| NetApp Inc | 21.95 | 25.39 | 3.89 | 23.13% | $0.38 | $1.1 | 1.17% |
| Logitech International SA | 25.86 | 7.30 | 3.55 | 6.77% | $0.18 | $0.48 | 5.47% |
| Turtle Beach Corp | 15.41 | 2.56 | 0.89 | -2.47% | $0.0 | $0.02 | -25.76% |
| Average | 48.96 | 9.66 | 3.24 | 5.79% | $0.35 | $0.92 | 6.78% |
When closely examining Apple, the following trends emerge:
The stock's Price to Earnings ratio of 35.52 is lower than the industry average by 0.73x, suggesting potential value in the eyes of market participants.
With a Price to Book ratio of 52.77, which is 5.46x 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 high Price to Sales ratio of 8.65, which is 2.67x the industry average, the stock might be considered overvalued based on sales performance.
With a Return on Equity (ROE) of 35.34% that is 29.55% 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 $31.03 Billion, which is 88.66x above the industry average, indicating stronger profitability and robust cash flow generation.
The company has higher gross profit of $43.72 Billion, which indicates 47.52x above the industry average, indicating 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 6.78%.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio gauges the extent to which a company has financed its operations through debt relative to equity.
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 comparing Apple with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:
In terms of the debt-to-equity ratio, Apple is positioned in the middle among its top 4 peers.
This suggests a relatively balanced financial structure, where the company maintains a moderate level of debt while also utilizing equity financing with a debt-to-equity ratio of 1.54.
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. In terms of ROE, EBITDA, gross profit, and revenue growth, Apple demonstrates strong performance compared to its industry peers, reflecting favorable financial health and growth prospects.
This article was generated by Benzinga's automated content engine and reviewed by an editor.