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Analyzing Apple In Comparison To Competitors In Technology Hardware, Storage & Peripherals Industry - Apple (NASDAQ:AAPL)
Benzinga· 2025-09-16 15:01
Core Insights - The article emphasizes the importance of thorough company analysis for investors, particularly focusing on Apple Inc. within the Technology Hardware, Storage & Peripherals industry [1] Company Overview - Apple is one of the largest global companies with a diverse range of hardware and software products aimed at both consumers and businesses [2] - The iPhone constitutes the majority of Apple's sales, with other products like Mac, iPad, and Watch designed to complement the iPhone within a broader software ecosystem [2] - Nearly half of Apple's sales are generated through its flagship stores, while the majority comes from partnerships and distribution channels [2] Financial Metrics Comparison - Apple's Price to Earnings (P/E) ratio is 35.92, which is lower than the industry average by 0.71x, indicating potential value [3][6] - The Price to Book (P/B) ratio of 53.36 is significantly higher than the industry average by 5.4x, suggesting possible overvaluation based on book value [6] - The Price to Sales (P/S) ratio stands at 8.75, which is 2.62x the industry average, indicating potential overvaluation based on sales performance [6] - Apple has a Return on Equity (ROE) of 35.34%, which is 29.55% above the industry average, reflecting efficient use of equity to generate profits [6] - The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Apple is $31.03 billion, which is 88.66x above the industry average, showcasing stronger profitability [6] - Apple's gross profit is $43.72 billion, 47.52x above the industry average, indicating higher earnings from core operations [6] - The revenue growth rate for Apple is 9.63%, surpassing the industry average of 6.78%, demonstrating robust sales expansion [6] Debt-to-Equity Ratio Analysis - Apple's debt-to-equity (D/E) ratio is 1.54, indicating a balanced financial structure with a reasonable level of debt relative to equity [9][11] - The D/E ratio allows for a concise evaluation of Apple's financial health and risk profile compared to its peers [9] Summary of Performance - Overall, Apple's financial metrics indicate a mix of low and high values compared to its peers, with strong performance in ROE, EBITDA, gross profit, and revenue growth [9]