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華爾街日報Performance Comparison: Amazon.com And Competitors In Broadline Retail Industry
In today's rapidly evolving and fiercely competitive business landscape, it is crucial for investors and industry analysts to conduct comprehensive company evaluations. In this article, we will undertake an in-depth industry comparison, assessing Amazon.com (NASDAQ:AMZN) alongside its primary competitors in the Broadline Retail industry. By meticulously examining crucial financial indicators, market positioning, and growth potential, we aim to provide valuable insights to 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 | 32.82 | 6.72 | 3.63 | 6.02% | $45.5 | $91.5 | 13.4% |
| Alibaba Group Holding Ltd | 21.36 | 2.58 | 2.65 | 2.05% | $27.26 | $97.01 | 4.77% |
| PDD Holdings Inc | 12.02 | 3.01 | 2.94 | 7.79% | $25.03 | $61.44 | 8.98% |
| MercadoLibre Inc | 51.74 | 17.28 | 4.10 | 7.06% | $0.88 | $3.21 | 39.48% |
| Sea Ltd | 58.97 | 7.84 | 4.05 | 3.77% | $0.48 | $2.6 | 38.3% |
| Coupang Inc | 126.48 | 10.23 | 1.48 | 2.02% | $0.32 | $2.72 | 17.81% |
| JD.com Inc | 9.93 | 1.29 | 0.24 | 2.3% | $7.36 | $50.47 | 14.85% |
| eBay Inc | 18.18 | 7.85 | 3.63 | 13.35% | $0.74 | $2.0 | 9.47% |
| Dillard's Inc | 18.62 | 5.22 | 1.63 | 6.55% | $0.14 | $0.58 | -2.93% |
| Vipshop Holdings Ltd | 10.48 | 1.70 | 0.69 | 3.06% | $1.55 | $4.91 | 3.36% |
| Ollie's Bargain Outlet Holdings Inc | 34.31 | 4.06 | 3 | 3.49% | $0.09 | $0.27 | 17.49% |
| Global E Online Ltd | 1028.38 | 7.48 | 8.06 | 1.43% | $0.02 | $0.1 | 25.46% |
| Macy's Inc | 13.21 | 1.37 | 0.28 | 1.95% | $0.36 | $2.1 | -1.9% |
| MINISO Group Holding Ltd | 19.72 | 3.88 | 2.13 | 4.08% | $0.79 | $2.59 | 28.17% |
| Kohl's Corp | 13.28 | 0.66 | 0.17 | 0.2% | $0.45 | $1.53 | 0.82% |
| Hour Loop Inc | 69.67 | 9.59 | 0.52 | 7.15% | $0.0 | $0.02 | 7.56% |
| Average | 100.42 | 5.6 | 2.37 | 4.42% | $4.36 | $15.44 | 14.11% |
By conducting a comprehensive analysis of Amazon.com, the following trends become evident:
At 32.82, the stock's Price to Earnings ratio is 0.33x less than the industry average, suggesting favorable growth potential.
With a Price to Book ratio of 6.72, which is 1.2x 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.
The Price to Sales ratio of 3.63, which is 1.53x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
The company has a higher Return on Equity (ROE) of 6.02%, which is 1.6% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.
The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $45.5 Billion, which is 10.44x above the industry average, indicating stronger profitability and robust cash flow generation.
With higher gross profit of $91.5 Billion, which indicates 5.93x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.
The company's revenue growth of 13.4% is significantly below the industry average of 14.11%. This suggests a potential struggle in generating increased sales volume.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio is a measure that indicates the level of debt a company has taken on relative to the value of its assets net of liabilities.
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 Amazon.com and its top 4 peers reveals the following information:
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 future performance compared to industry peers.
This article was generated by Benzinga's automated content engine and reviewed by an editor.