- LIVE QUOTES
- LEARN
- HELP
Nasdaq
Wall Street JournalEN
Inquiry Into Amazon.com's Competitor Dynamics In Broadline Retail Industry
In the dynamic and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Amazon.com (NASDAQ:AMZN) and its primary competitors in the Broadline Retail industry. By closely examining key financial metrics, market position, and growth prospects, our aim is to provide valuable insights for investors and shed light on company's performance within the industry.
Amazon.com Background
Amazon is the leading online retailer and marketplace for third party sellers. Retail related revenue represents approximately 74% of total, followed by Amazon Web Services (17%), and advertising services (9%). International segments constitute 22% of Amazon's total revenue, led by Germany, the United Kingdom, and Japan.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Amazon.com Inc | 32.84 | 6.73 | 3.63 | 6.02% | $45.5 | $91.5 | 13.4% |
| Alibaba Group Holding Ltd | 19.80 | 2.39 | 2.45 | 2.05% | $27.26 | $97.01 | 4.77% |
| PDD Holdings Inc | 11.61 | 2.90 | 2.84 | 7.79% | $25.03 | $61.44 | 8.98% |
| MercadoLibre Inc | 49.33 | 16.48 | 3.91 | 7.06% | $0.88 | $3.21 | 39.48% |
| Sea Ltd | 56.05 | 7.45 | 3.85 | 3.77% | $0.48 | $2.6 | 38.3% |
| Coupang Inc | 114.90 | 9.30 | 1.34 | 2.02% | $0.32 | $2.72 | 17.81% |
| JD.com Inc | 9.49 | 1.23 | 0.23 | 2.3% | $7.36 | $50.47 | 14.85% |
| eBay Inc | 19.31 | 8.34 | 3.85 | 13.35% | $0.74 | $2.0 | 9.47% |
| Dillard's Inc | 16.65 | 4.68 | 1.45 | 6.55% | $0.21 | $0.66 | 2.74% |
| Vipshop Holdings Ltd | 9.51 | 1.55 | 0.62 | 3.06% | $1.55 | $4.91 | 3.36% |
| Ollie's Bargain Outlet Holdings Inc | 30.33 | 3.66 | 2.67 | 2.55% | $0.08 | $0.25 | 18.59% |
| Global E Online Ltd | 988.25 | 7.19 | 7.74 | 1.43% | $0.02 | $0.1 | 25.46% |
| Macy's Inc | 13.02 | 1.36 | 0.27 | 0.25% | $0.27 | $2.06 | 0.2% |
| MINISO Group Holding Ltd | 19.12 | 3.76 | 2.07 | 4.08% | $0.79 | $2.59 | 28.17% |
| Kohl's Corp | 11.76 | 0.58 | 0.15 | 0.2% | $0.25 | $1.52 | -3.64% |
| Hour Loop Inc | 63 | 8.67 | 0.47 | 7.15% | $0.0 | $0.02 | 7.56% |
| Average | 95.48 | 5.3 | 2.26 | 4.24% | $4.35 | $15.44 | 14.41% |
By carefully studying Amazon.com, we can deduce the following trends:
At 32.84, the stock's Price to Earnings ratio is 0.34x less than the industry average, suggesting favorable growth potential.
With a Price to Book ratio of 6.73, which is 1.27x the industry average, Amazon.com 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 3.63, which is 1.61x the industry average, the stock might be considered overvalued based on sales performance.
The Return on Equity (ROE) of 6.02% is 1.78% above the industry average, highlighting efficient use of equity to generate profits.
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $45.5 Billion is 10.46x above the industry average, highlighting stronger profitability and robust cash flow generation.
The gross profit of $91.5 Billion is 5.93x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
The company is witnessing a substantial decline in revenue growth, with a rate of 13.4% compared to the industry average of 14.41%, which indicates a challenging sales environment.
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.
When assessing Amazon.com against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:
Amazon.com has a stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.37.
This suggests that the company has a more favorable balance between debt and equity, which can be perceived as a positive indicator by investors.
Key Takeaways
For Amazon.com, the PE ratio is low compared to its peers in the Broadline Retail industry, indicating potential undervaluation. The high PB and PS ratios suggest that the market values Amazon.com's assets and sales highly. Amazon.com's high ROE, EBITDA, and gross profit reflect strong profitability and operational efficiency. However, the low revenue growth rate may raise concerns about Amazon.com's future performance compared to industry peers.
This article was generated by Benzinga's automated content engine and reviewed by an editor.