Industry Comparison: Evaluating Apple Against Competitors In Technology Hardware, Storage & Peripherals Industry – Apple (NASDAQ:AAPL)

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 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 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 29.71 39.48 7.82 31.88% $30.74 $42.27 -4.31%
Super Micro Computer Inc 50.33 10.39 4.46 9.85% $0.4 $0.6 200.01%
NetApp Inc 25.58 23.31 3.89 35.49% $0.46 $1.15 5.24%
Hewlett Packard Enterprise Co 12.28 1.08 0.83 1.82% $1.23 $2.46 -13.5%
Pure Storage Inc 316.42 15.39 7.06 5.41% $0.11 $0.57 -2.52%
Eastman Kodak Co 7.57 0.42 0.42 2.66% $0.06 $0.05 -10.43%
AstroNova Inc 27.30 1.48 0.87 3.06% $0.01 $0.01 -0.65%
Transact Technologies Inc 58.67 0.91 0.58 -2.66% $-0.0 $0.01 -52.01%
Average 71.16 7.57 2.59 7.95% $0.32 $0.69 18.02%

When closely examining Apple, the following trends emerge:

  • The stock’s Price to Earnings ratio of 29.71 is lower than the industry average by 0.42x, suggesting potential value in the eyes of market participants.

  • It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 39.48 which exceeds the industry average by 5.22x.

  • The Price to Sales ratio of 7.82, which is 3.02x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

  • The Return on Equity (ROE) of 31.88% is 23.93% above the industry average, highlighting efficient use of equity to generate profits.

  • The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $30.74 Billion, which is 96.06x above the industry average, implying stronger profitability and robust cash flow generation.

  • The company has higher gross profit of $42.27 Billion, which indicates 61.26x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • The company’s revenue growth of -4.31% is significantly lower compared to the industry average of 18.02%. This indicates a potential fall in the company’s sales performance.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio provides insights into the proportion of debt a company has in relation to its equity and asset value.

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:

  • Apple holds a middle position in terms of the debt-to-equity ratio compared to its top 4 peers.

  • This indicates a balanced financial structure with a moderate level of debt and an appropriate reliance on equity financing with a debt-to-equity ratio of 1.41.

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 low revenue growth suggest that Apple is efficiently utilizing its resources and generating strong profits, but may be facing challenges in revenue expansion.

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

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