In today's rapidly changing and fiercely competitive business landscape, it is vital for investors and industry enthusiasts to carefully evaluate companies. In this article, we will perform a comprehensive industry comparison, evaluating Amazon.com 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 75% of total, followed by Amazon Web Services' cloud computing, storage, database, and other offerings (15%), advertising services (5% to 10%), and other the remainder. International segments constitute 25% to 30% of Amazon's non-AWS sales, 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 | 32.58 | 6.83 | 3.44 | 5.68% | $36.6 | $86.89 | 13.33% |
| Alibaba Group Holding Ltd | 15.75 | 1.99 | 2.05 | 1.23% | $21.8 | $90.83 | 6.57% |
| PDD Holdings Inc | 12.12 | 3.50 | 2.99 | 4.59% | $16.09 | $54.73 | 10.21% |
| MercadoLibre Inc | 59.47 | 21.37 | 5.07 | 10.56% | $0.92 | $2.77 | 36.97% |
| Coupang Inc | 149.50 | 11.59 | 1.72 | 2.53% | $0.36 | $2.32 | 11.16% |
| JD.com Inc | 7.66 | 1.39 | 0.29 | 4.6% | $14.27 | $47.85 | 15.78% |
| eBay Inc | 20.28 | 8.78 | 4.19 | 7.59% | $0.65 | $1.95 | 6.14% |
| Ollie's Bargain Outlet Holdings Inc | 42.59 | 4.91 | 3.66 | 2.78% | $0.07 | $0.24 | 13.35% |
| Vipshop Holdings Ltd | 7.97 | 1.42 | 0.55 | 4.85% | $2.45 | $6.08 | -4.98% |
| Dillard's Inc | 12.82 | 3.89 | 1.13 | 8.97% | $0.26 | $0.69 | -1.64% |
| MINISO Group Holding Ltd | 17.95 | 4.06 | 2.48 | 3.98% | $0.65 | $1.96 | 18.89% |
| Macy's Inc | 6.06 | 0.73 | 0.15 | 0.84% | $0.31 | $2.0 | -4.14% |
| Savers Value Village Inc | 56.75 | 4.17 | 1.18 | 4.52% | $0.06 | $0.23 | 7.9% |
| Kohl's Corp | 10.55 | 0.34 | 0.08 | -0.4% | $0.23 | $1.4 | -4.41% |
| Hour Loop Inc | 174 | 10.52 | 0.44 | 11.93% | $0.0 | $0.01 | 4.68% |
| Average | 42.39 | 5.62 | 1.86 | 4.9% | $4.15 | $15.22 | 8.32% |
Through an analysis of Amazon.com, we can infer the following trends:
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A Price to Earnings ratio of 32.58 significantly below the industry average by 0.77x suggests undervaluation. This can make the stock appealing for those seeking growth.
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The elevated Price to Book ratio of 6.83 relative to the industry average by 1.22x suggests company might be overvalued based on its book value.
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With a relatively high Price to Sales ratio of 3.44, which is 1.85x the industry average, the stock might be considered overvalued based on sales performance.
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The Return on Equity (ROE) of 5.68% is 0.78% above the industry average, highlighting efficient use of equity to generate profits.
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The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $36.6 Billion, which is 8.82x above the industry average, implying stronger profitability and robust cash flow generation.
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Compared to its industry, the company has higher gross profit of $86.89 Billion, which indicates 5.71x above the industry average, indicating stronger profitability and higher earnings from its core operations.
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With a revenue growth of 13.33%, which surpasses the industry average of 8.32%, the company is demonstrating robust sales expansion and gaining market share.
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 evaluating Amazon.com alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:
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When considering the debt-to-equity ratio, Amazon.com exhibits a stronger financial position compared to its top 4 peers.
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This indicates that the company has a favorable balance between debt and equity, with a lower debt-to-equity ratio of 0.4, 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, gross profit, and revenue growth, Amazon.com demonstrates strong performance compared to its industry peers, reflecting robust financial health and growth potential.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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