Apple (AAPL), Dominant in Profit...Revenue Growth Rate Less Than 'One-Third' of Industry Average

▲ Apple (AAPL), iPhone, MacBook, AirPods, Apple Watch/AI-generated image

Apple (AAPL) demonstrated overwhelming profit-generating power despite a stock price higher than the industry average, but its revenue growth rate was less than one-third of the average of its competitors.

According to Benzinga on September 15 (local time), Apple's price-to-earnings (P/E) ratio was 38.2x, which was 1.07 times higher than the technology hardware, storage, and peripherals industry average of 35.72x. Its price-to-book (P/B) ratio was 45.21x, 2.8 times the industry average of 16.16x, and its price-to-sales (P/S) ratio was 10.54x, 1.94 times the average of 5.42x. Benzinga evaluated that all three indicators exceeded the industry average, reflecting a significant premium on Apple's stock.

Profitability supporting the high stock price was evident. Apple's return on equity (ROE) was 27.84%, 7.42 percentage points higher than the industry average of 20.42%. Earnings before interest, taxes, depreciation, and amortization (EBITDA) was $39.02 billion, 24.09 times the industry average of $1.62 billion. Gross profit was also $54.77 billion, 26.33 times more than the average of $2.08 billion.

On the other hand, weaknesses emerged in terms of growth speed. Apple's revenue growth rate was 16.36%, significantly below the industry average of 60%. In the comparison group, companies such as those with 371.59%, 93.16%, 48.49%, and 43.84% revenue growth rates, higher than Apple, were identified. Benzinga pointed out that despite Apple's high profitability and operational efficiency, relatively slow revenue expansion could be a burden in future competitiveness evaluations.

Its financial structure was assessed as more stable than its competitors. Apple's debt-to-equity ratio was 0.78, lower than its four major competitors. Benzinga analyzed that the relatively good balance between debt and equity is a positive factor in terms of financial health and risk management. Apple has built an ecosystem of Mac, iPad, Apple Watch, and software, centered around the iPhone, and also possesses its own semiconductor and software design capabilities.

Ultimately, Apple maintains a high stock price based on profits and cash generation significantly exceeding the industry average, but in terms of revenue growth rate, it lags behind competitors that are rapidly expanding their size. Benzinga evaluated that with high P/E, P/B, and P/S ratios co-occurring with strong ROE, EBITDA, and gross profit, a revenue growth rate of 16.36% is a key indicator that will determine future performance.

[Key Summary of the Article]

-Apple's P/E ratio was 38.2x, and its P/B ratio was 45.21x, both exceeding the industry average.

-EBITDA was $39.02 billion, and gross profit was $54.77 billion, both overwhelmingly surpassing the industry average.

-Apple's revenue growth rate was 16.36%, significantly falling short of the industry average of 60%, indicating growth speed as a key weakness.

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