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華爾街日報Understanding Amazon.com's Position In Broadline Retail Industry Compared To Competitors
In the dynamic and fiercely competitive business environment, conducting a thorough analysis of companies is crucial for investors and industry enthusiasts. In this article, we will perform an extensive industry comparison, evaluating Amazon.com (NASDAQ:AMZN) in relation to its major competitors in the Broadline Retail industry. By closely examining crucial financial metrics, market position, and growth prospects, we aim to offer 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 | 32.79 | 6.71 | 3.63 | 6.02% | $45.5 | $91.5 | 13.4% |
| Alibaba Group Holding Ltd | 20.35 | 2.46 | 2.52 | 2.05% | $27.26 | $97.01 | 4.77% |
| PDD Holdings Inc | 11.45 | 2.86 | 2.80 | 7.79% | $25.03 | $61.44 | 8.98% |
| MercadoLibre Inc | 48.70 | 16.27 | 3.86 | 7.06% | $0.88 | $3.21 | 39.48% |
| Sea Ltd | 54.92 | 7.30 | 3.77 | 3.77% | $0.48 | $2.6 | 38.3% |
| JD.com Inc | 9.63 | 1.25 | 0.24 | 2.3% | $7.36 | $50.47 | 14.85% |
| Coupang Inc | 106.81 | 8.64 | 1.25 | 2.02% | $0.32 | $2.72 | 17.81% |
| eBay Inc | 18.64 | 8.05 | 3.72 | 13.35% | $0.74 | $2.0 | 9.47% |
| Vipshop Holdings Ltd | 10.31 | 1.67 | 0.67 | 3.06% | $1.55 | $4.91 | 3.36% |
| Dillard's Inc | 17 | 4.77 | 1.48 | 6.55% | $0.21 | $0.66 | 2.74% |
| Global E Online Ltd | 993.50 | 7.23 | 7.78 | 1.43% | $0.02 | $0.1 | 25.46% |
| Ollie's Bargain Outlet Holdings Inc | 30.17 | 3.64 | 2.65 | 2.55% | $0.08 | $0.25 | 18.59% |
| Macy's Inc | 13.28 | 1.39 | 0.28 | 0.25% | $0.27 | $2.06 | 0.2% |
| MINISO Group Holding Ltd | 19.81 | 3.90 | 2.14 | 4.08% | $0.79 | $2.59 | 28.17% |
| Kohl's Corp | 12.38 | 0.61 | 0.15 | 0.2% | $0.25 | $1.52 | -3.64% |
| Hour Loop Inc | 67 | 9.22 | 0.50 | 7.15% | $0.0 | $0.02 | 7.56% |
| Average | 95.6 | 5.28 | 2.25 | 4.24% | $4.35 | $15.44 | 14.41% |
Upon a comprehensive analysis of Amazon.com, the following trends can be discerned:
At 32.79, 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 6.71, 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.
The Price to Sales ratio of 3.63, which is 1.61x 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 1.78% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.
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.
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 14.41%. 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 terms of the Debt-to-Equity ratio, Amazon.com can be assessed by comparing it to its top 4 peers, resulting in the following observations:
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 ratio is low compared to peers, indicating potential undervaluation. The PB and PS ratios are high, suggesting overvaluation relative to industry standards. In terms of ROE, EBITDA, and gross profit, Amazon.com demonstrates strong performance compared to industry peers. However, the revenue growth rate is lower than that of its competitors, which may impact future valuation.
This article was generated by Benzinga's automated content engine and reviewed by an editor.