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 | 31.48 | 45.19 | 7.67 | 37.11% | $32.25 | $44.87 | 5.08% |
| Super Micro Computer Inc | 22.64 | 3.90 | 1.22 | 1.72% | $0.14 | $0.44 | 19.48% |
| Hewlett Packard Enterprise Co | 8.43 | 0.91 | 0.76 | 2.39% | $1.11 | $2.29 | 16.27% |
| NetApp Inc | 18.44 | 20.65 | 3.22 | 31.69% | $0.45 | $1.15 | 2.18% |
| Pure Storage Inc | 178.71 | 13.87 | 5.99 | 3.12% | $0.09 | $0.59 | 11.4% |
| Western Digital Corp | 16.95 | 3.34 | 1.11 | 5.86% | $0.28 | $0.91 | 30.94% |
| Eastman Kodak Co | 12.71 | 0.88 | 0.53 | -1.66% | $0.02 | $0.05 | -0.8% |
| Turtle Beach Corp | 15.03 | 1.85 | 0.62 | -0.55% | $0.0 | $0.02 | 14.42% |
| Average | 38.99 | 6.49 | 1.92 | 6.08% | $0.3 | $0.78 | 13.41% |
Through a meticulous analysis of Apple, we can observe the following trends:
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At 31.48, the stock's Price to Earnings ratio is 0.81x less than the industry average, suggesting favorable growth potential.
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With a Price to Book ratio of 45.19, which is 6.96x 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.
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The stock's relatively high Price to Sales ratio of 7.67, surpassing the industry average by 3.99x, may indicate an aspect of overvaluation in terms of sales performance.
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The Return on Equity (ROE) of 37.11% is 31.03% above the industry average, highlighting efficient use of equity to generate profits.
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The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $32.25 Billion, which is 107.5x above the industry average, implying stronger profitability and robust cash flow generation.
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Compared to its industry, the company has higher gross profit of $44.87 Billion, which indicates 57.53x above the industry average, indicating stronger profitability and higher earnings from its core operations.
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The company is witnessing a substantial decline in revenue growth, with a rate of 5.08% compared to the industry average of 13.41%, which indicates a challenging sales environment.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations.
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.
In light of the Debt-to-Equity ratio, a comparison between Apple and its top 4 peers reveals the following information:
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Among its top 4 peers, Apple is placed in the middle with a moderate debt-to-equity ratio of 1.47.
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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 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.
Latest Ratings for AAPL
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| May 2025 | Wedbush | Reiterates | Outperform | Outperform |
| May 2025 | Wedbush | Maintains | Outperform | Outperform |
| May 2025 | Rosenblatt | Downgrades | Buy | Neutral |
View More Analyst Ratings for AAPL
View the Latest Analyst Ratings
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