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華爾街日報Comparing Amazon.com With Industry Competitors In Broadline Retail Industry
In today's rapidly changing and fiercely competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies. In this article, we will conduct a comprehensive industry comparison, evaluating Amazon.com (NASDAQ:AMZN) against its key competitors in the Broadline Retail industry. By examining key 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 | 32.92 | 6.74 | 3.64 | 6.02% | $45.5 | $91.5 | 13.4% |
| Alibaba Group Holding Ltd | 20.89 | 2.53 | 2.59 | 2.05% | $27.26 | $97.01 | 4.77% |
| PDD Holdings Inc | 12.09 | 3.02 | 2.95 | 7.79% | $25.03 | $61.44 | 8.98% |
| MercadoLibre Inc | 52.44 | 17.52 | 4.16 | 7.06% | $0.88 | $3.21 | 39.48% |
| Sea Ltd | 61.04 | 8.12 | 4.19 | 3.77% | $0.48 | $2.6 | 38.3% |
| JD.com Inc | 9.75 | 1.27 | 0.24 | 2.3% | $7.36 | $50.47 | 14.85% |
| Coupang Inc | 109 | 8.82 | 1.27 | 2.02% | $0.32 | $2.72 | 17.81% |
| eBay Inc | 20.06 | 8.67 | 4 | 13.35% | $0.74 | $2.0 | 9.47% |
| Dillard's Inc | 17.56 | 4.93 | 1.53 | 6.55% | $0.21 | $0.66 | 2.74% |
| Vipshop Holdings Ltd | 9.38 | 1.52 | 0.61 | 3.06% | $1.55 | $4.91 | 3.36% |
| Ollie's Bargain Outlet Holdings Inc | 32.40 | 3.91 | 2.85 | 2.55% | $0.08 | $0.25 | 18.59% |
| Global E Online Ltd | 961.25 | 6.99 | 7.53 | 1.43% | $0.02 | $0.1 | 25.46% |
| Macy's Inc | 13.44 | 1.40 | 0.28 | 0.25% | $0.27 | $2.06 | 0.2% |
| MINISO Group Holding Ltd | 19.66 | 3.86 | 2.12 | 4.08% | $0.79 | $2.59 | 28.17% |
| Kohl's Corp | 12.36 | 0.61 | 0.15 | 0.2% | $0.25 | $1.52 | -3.64% |
| Hour Loop Inc | 60.77 | 8.36 | 0.46 | 7.15% | $0.0 | $0.02 | 7.56% |
| Average | 94.14 | 5.44 | 2.33 | 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 32.92 significantly below the industry average by 0.35x suggests undervaluation. This can make the stock appealing for those seeking growth.
The elevated Price to Book ratio of 6.74 relative to the industry average by 1.24x suggests company might be overvalued based on its book value.
With a relatively high Price to Sales ratio of 3.64, which is 1.56x the industry average, the stock might be considered overvalued based on 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.
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $45.5 Billion is 10.46x above the industry average, highlighting stronger profitability and robust cash flow generation.
The gross profit of $91.5 Billion is 5.93x above that of its industry, highlighting 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 gauges the extent to which a company has financed its operations through debt relative to 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 examining Amazon.com in comparison to its top 4 peers with respect to the Debt-to-Equity ratio, the following information becomes apparent:
Amazon.com is in a relatively stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.37.
This implies that the company relies less on debt financing and has a more favorable balance between debt and equity.
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.