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華爾街日報Insights Into Amazon.com's Performance Versus Peers In Broadline Retail Sector
Amidst the fast-paced and highly competitive business environment of today, conducting comprehensive company analysis is essential for investors and industry enthusiasts. In this article, we will delve into an extensive industry comparison, evaluating Amazon.com (NASDAQ:AMZN) in comparison to its major competitors within the Broadline Retail industry. By analyzing critical financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in 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 | 20.16 | 2.44 | 2.50 | 2.05% | $27.26 | $97.01 | 4.77% |
| PDD Holdings Inc | 11.57 | 2.89 | 2.83 | 7.79% | $25.03 | $61.44 | 8.98% |
| MercadoLibre Inc | 48.77 | 16.29 | 3.87 | 7.06% | $0.88 | $3.21 | 39.48% |
| Sea Ltd | 55.13 | 7.33 | 3.79 | 3.77% | $0.48 | $2.6 | 38.3% |
| JD.com Inc | 9.64 | 1.25 | 0.24 | 2.3% | $7.36 | $50.47 | 14.85% |
| Coupang Inc | 108.57 | 8.78 | 1.27 | 2.02% | $0.32 | $2.72 | 17.81% |
| eBay Inc | 18.76 | 8.10 | 3.74 | 13.35% | $0.74 | $2.0 | 9.47% |
| Vipshop Holdings Ltd | 10.33 | 1.68 | 0.68 | 3.06% | $1.55 | $4.91 | 3.36% |
| Dillard's Inc | 17.15 | 4.82 | 1.50 | 6.55% | $0.21 | $0.66 | 2.74% |
| Ollie's Bargain Outlet Holdings Inc | 30.80 | 3.72 | 2.71 | 2.55% | $0.08 | $0.25 | 18.59% |
| Global E Online Ltd | 993.25 | 7.23 | 7.78 | 1.43% | $0.02 | $0.1 | 25.46% |
| Macy's Inc | 13.13 | 1.37 | 0.27 | 0.25% | $0.27 | $2.06 | 0.2% |
| MINISO Group Holding Ltd | 19.65 | 3.87 | 2.12 | 4.08% | $0.79 | $2.59 | 28.17% |
| Kohl's Corp | 12.49 | 0.62 | 0.16 | 0.2% | $0.25 | $1.52 | -3.64% |
| Hour Loop Inc | 66 | 9.08 | 0.49 | 7.15% | $0.0 | $0.02 | 7.56% |
| Average | 95.69 | 5.3 | 2.26 | 4.24% | $4.35 | $15.44 | 14.41% |
By thoroughly analyzing Amazon.com, we can discern the following trends:
A Price to Earnings ratio of 32.82 significantly below the industry average by 0.34x suggests undervaluation. This can make the stock appealing for those seeking growth.
It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 6.72 which exceeds the industry average by 1.27x.
The stock's relatively high Price to Sales ratio of 3.63, surpassing the industry average by 1.61x, may indicate an aspect of overvaluation in terms of sales performance.
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.
With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $45.5 Billion, which is 10.46x above the industry average, the company demonstrates 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 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.
In terms of the Debt-to-Equity ratio, Amazon.com stands in comparison with its top 4 peers, leading to the following comparisons:
In terms of the debt-to-equity ratio, Amazon.com has a lower level of debt compared to its top 4 peers, indicating a stronger financial position.
This implies that the company relies less on debt financing and has a more favorable balance between debt and equity with a lower debt-to-equity ratio of 0.37.
Key Takeaways
For Amazon.com, the PE, PB, and PS ratios indicate that the stock is relatively undervalued compared to its peers in the Broadline Retail industry. On the other hand, the high ROE, EBITDA, and gross profit suggest strong profitability and operational efficiency for Amazon.com. However, the low revenue growth rate may raise concerns about the company's future performance compared to industry peers.
This article was generated by Benzinga's automated content engine and reviewed by an editor.