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华尔街日报Comparative Study: Amazon.com And Industry Competitors In Broadline Retail Industry
Amidst today's fast-paced and highly competitive business environment, it is crucial for investors and industry enthusiasts to conduct comprehensive company evaluations. 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 | 31.44 | 6.44 | 3.48 | 6.02% | $45.5 | $91.5 | 13.4% |
| Alibaba Group Holding Ltd | 20.13 | 2.43 | 2.49 | 2.05% | $27.26 | $97.01 | 4.77% |
| PDD Holdings Inc | 11.16 | 2.79 | 2.73 | 7.79% | $25.03 | $61.44 | 8.98% |
| MercadoLibre Inc | 47.20 | 15.77 | 3.74 | 7.06% | $0.88 | $3.21 | 39.48% |
| Sea Ltd | 54.27 | 7.22 | 3.73 | 3.77% | $0.48 | $2.6 | 38.3% |
| Coupang Inc | 110.43 | 8.93 | 1.29 | 2.02% | $0.32 | $2.72 | 17.81% |
| JD.com Inc | 9.57 | 1.25 | 0.23 | 2.3% | $7.36 | $50.47 | 14.85% |
| eBay Inc | 18.11 | 7.82 | 3.61 | 13.35% | $0.74 | $2.0 | 9.47% |
| Dillard's Inc | 17.73 | 4.98 | 1.55 | 6.55% | $0.21 | $0.66 | 2.74% |
| Vipshop Holdings Ltd | 10.14 | 1.65 | 0.66 | 3.06% | $1.55 | $4.91 | 3.36% |
| Ollie's Bargain Outlet Holdings Inc | 30.42 | 3.67 | 2.68 | 2.55% | $0.08 | $0.25 | 18.59% |
| Global E Online Ltd | 973.50 | 7.08 | 7.63 | 1.43% | $0.02 | $0.1 | 25.46% |
| Macy's Inc | 13.60 | 1.42 | 0.28 | 0.25% | $0.27 | $2.06 | 0.2% |
| MINISO Group Holding Ltd | 20.49 | 4.03 | 2.21 | 4.08% | $0.79 | $2.59 | 28.17% |
| Kohl's Corp | 13.27 | 0.66 | 0.17 | 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 | 94.4 | 5.25 | 2.23 | 4.24% | $4.35 | $15.44 | 14.41% |
After thoroughly examining Amazon.com, the following trends can be inferred:
The Price to Earnings ratio of 31.44 is 0.33x lower than the industry average, indicating potential undervaluation for the stock.
It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 6.44 which exceeds the industry average by 1.23x.
The stock's relatively high Price to Sales ratio of 3.48, surpassing the industry average by 1.56x, may indicate an aspect of overvaluation in terms of sales performance.
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.
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.
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 measures the financial leverage of a company by evaluating its debt relative 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.
In light of the Debt-to-Equity ratio, a comparison between Amazon.com and its top 4 peers reveals the following information:
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, the PE ratio is low compared to its peers in the Broadline Retail industry, indicating potential undervaluation. The high PB and PS ratios suggest that the market values Amazon.com's assets and sales highly. Amazon.com's high ROE, EBITDA, and gross profit reflect strong profitability and operational efficiency. However, the low revenue growth rate may raise concerns about future performance compared to industry peers.
This article was generated by Benzinga's automated content engine and reviewed by an editor.