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華爾街日報Comparative Study: Amazon.com And Industry Competitors In Broadline Retail Industry
In today's rapidly changing and highly competitive business world, it is vital for investors and industry enthusiasts to carefully assess companies. In this article, we will perform a comprehensive industry comparison, evaluating Amazon.com (NASDAQ:AMZN) against its key competitors in the Broadline Retail industry. By analyzing important financial metrics, market position, and growth prospects, we aim 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 | 6.72 | 3.63 | 6.02% | $45.5 | $91.5 | 13.4% |
| Alibaba Group Holding Ltd | 20.45 | 2.47 | 2.53 | 2.05% | $27.26 | $97.01 | 4.77% |
| PDD Holdings Inc | 11.73 | 2.93 | 2.87 | 7.79% | $25.03 | $61.44 | 8.98% |
| MercadoLibre Inc | 48.96 | 16.35 | 3.88 | 7.06% | $0.88 | $3.21 | 39.48% |
| Sea Ltd | 55.83 | 7.42 | 3.84 | 3.77% | $0.48 | $2.6 | 38.3% |
| Coupang Inc | 115.57 | 9.35 | 1.35 | 2.02% | $0.32 | $2.72 | 17.81% |
| JD.com Inc | 9.72 | 1.26 | 0.24 | 2.3% | $7.36 | $50.47 | 14.85% |
| eBay Inc | 18.89 | 8.16 | 3.77 | 13.35% | $0.74 | $2.0 | 9.47% |
| Vipshop Holdings Ltd | 10.27 | 1.67 | 0.67 | 3.06% | $1.55 | $4.91 | 3.36% |
| Dillard's Inc | 17.13 | 4.81 | 1.50 | 6.55% | $0.21 | $0.66 | 2.74% |
| Ollie's Bargain Outlet Holdings Inc | 31.11 | 3.76 | 2.74 | 2.55% | $0.08 | $0.25 | 18.59% |
| Global E Online Ltd | 990 | 7.20 | 7.75 | 1.43% | $0.02 | $0.1 | 25.46% |
| Macy's Inc | 13.22 | 1.38 | 0.28 | 0.25% | $0.27 | $2.06 | 0.2% |
| MINISO Group Holding Ltd | 19.82 | 3.90 | 2.14 | 4.08% | $0.79 | $2.59 | 28.17% |
| Kohl's Corp | 12.47 | 0.62 | 0.16 | 0.2% | $0.25 | $1.52 | -3.64% |
| Hour Loop Inc | 64 | 8.81 | 0.48 | 7.15% | $0.0 | $0.02 | 7.56% |
| Average | 95.94 | 5.34 | 2.28 | 4.24% | $4.35 | $15.44 | 14.41% |
Through a thorough examination of Amazon.com, we can discern 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.
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 1.26x.
The Price to Sales ratio of 3.63, which is 1.59x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
The Return on Equity (ROE) of 6.02% is 1.78% above the industry average, highlighting efficient use of equity to generate profits.
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 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 light of the Debt-to-Equity ratio, a comparison between Amazon.com and its top 4 peers reveals the following information:
Amazon.com exhibits a stronger financial position compared to its top 4 peers in the sector, as indicated 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 seen as a positive aspect for 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, revenue growth is relatively low, which may impact future valuation compared to competitors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.