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華爾街日報Comparative Study: Amazon.com And Industry Competitors In Broadline Retail Industry
In the ever-evolving and intensely competitive business landscape, conducting a thorough company analysis is of utmost importance for investors and industry followers. In this article, we will carry out an in-depth industry comparison, assessing Amazon.com (NASDAQ:AMZN) alongside its primary competitors in the Broadline Retail industry. By meticulously examining key financial metrics, market positioning, and growth prospects, we aim to offer 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 | 32.03 | 6.56 | 3.54 | 6.02% | $45.5 | $91.5 | 13.4% |
| Alibaba Group Holding Ltd | 19.83 | 2.40 | 2.46 | 2.05% | $27.26 | $97.01 | 4.77% |
| PDD Holdings Inc | 10.81 | 2.70 | 2.64 | 7.79% | $25.03 | $61.44 | 8.98% |
| MercadoLibre Inc | 47.95 | 16.02 | 3.80 | 7.06% | $0.88 | $3.21 | 39.48% |
| Sea Ltd | 52.60 | 6.99 | 3.61 | 3.77% | $0.48 | $2.6 | 38.3% |
| JD.com Inc | 9.54 | 1.24 | 0.23 | 2.3% | $7.36 | $50.47 | 14.85% |
| Coupang Inc | 108.05 | 8.74 | 1.26 | 2.02% | $0.32 | $2.72 | 17.81% |
| eBay Inc | 18.55 | 8.01 | 3.70 | 13.35% | $0.74 | $2.0 | 9.47% |
| Dillard's Inc | 17.74 | 4.98 | 1.55 | 6.55% | $0.21 | $0.66 | 2.74% |
| Vipshop Holdings Ltd | 10.22 | 1.66 | 0.67 | 3.06% | $1.55 | $4.91 | 3.36% |
| Global E Online Ltd | 1027.25 | 7.47 | 8.05 | 1.43% | $0.02 | $0.1 | 25.46% |
| Ollie's Bargain Outlet Holdings Inc | 29.90 | 3.61 | 2.63 | 2.55% | $0.08 | $0.25 | 18.59% |
| Macy's Inc | 13.74 | 1.44 | 0.29 | 0.25% | $0.27 | $2.06 | 0.2% |
| MINISO Group Holding Ltd | 19.92 | 3.92 | 2.15 | 4.08% | $0.79 | $2.59 | 28.17% |
| Kohl's Corp | 13.10 | 0.65 | 0.16 | 0.2% | $0.25 | $1.52 | -3.64% |
| Hour Loop Inc | 66.23 | 9.11 | 0.50 | 7.15% | $0.0 | $0.02 | 7.56% |
| Average | 97.7 | 5.26 | 2.25 | 4.24% | $4.35 | $15.44 | 14.41% |
When conducting a detailed analysis of Amazon.com, the following trends become clear:
At 32.03, the stock's Price to Earnings ratio is 0.33x less than the industry average, suggesting favorable growth potential.
The elevated Price to Book ratio of 6.56 relative to the industry average by 1.25x suggests company might be overvalued based on its book value.
The Price to Sales ratio of 3.54, which is 1.57x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
With a Return on Equity (ROE) of 6.02% that is 1.78% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.
Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $45.5 Billion, which is 10.46x above the industry average, indicating stronger profitability and robust cash flow generation.
The company has higher gross profit of $91.5 Billion, which indicates 5.93x above the industry average, indicating stronger profitability and higher earnings from its core operations.
The company's revenue growth of 13.4% is significantly lower compared to the industry average of 14.41%. This indicates a potential fall in the company's sales performance.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio assesses the extent to which a company relies on borrowed funds compared to its equity.
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 comparing Amazon.com with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:
When considering the debt-to-equity ratio, Amazon.com exhibits a stronger financial position compared to its top 4 peers.
This indicates that the company has a favorable balance between debt and equity, with a lower debt-to-equity ratio of 0.37, which can be perceived as a positive aspect by investors.
Key Takeaways
For Amazon.com in the Broadline Retail industry, the PE, PB, and PS ratios indicate that the stock is relatively undervalued compared to its peers. However, the high ROE, EBITDA, gross profit, and low revenue growth suggest strong profitability and operational efficiency, positioning Amazon.com favorably within the industry sector.
This article was generated by Benzinga's automated content engine and reviewed by an editor.