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In the fast-paced and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Amazon.com (NASDAQ:AMZN) in comparison to its major competitors within the Broadline Retail industry. By analyzing crucial 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 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 | 33.97 | 7.12 | 3.58 | 5.68% | $36.6 | $86.89 | 13.33% |
| Alibaba Group Holding Ltd | 20.02 | 2.91 | 2.96 | 4.26% | $53.52 | $111.22 | 1.82% |
| PDD Holdings Inc | 14.60 | 3.79 | 3.49 | 8.89% | $25.79 | $58.13 | 7.14% |
| MercadoLibre Inc | 58.30 | 20.95 | 4.97 | 9.76% | $0.95 | $3.09 | 33.85% |
| Sea Ltd | 80.38 | 9.54 | 5.01 | 4.36% | $0.58 | $2.41 | 38.16% |
| Coupang Inc | 159.75 | 12.43 | 1.84 | 0.71% | $0.34 | $2.56 | 16.4% |
| JD.com Inc | 9.28 | 1.48 | 0.28 | 2.68% | $7.34 | $56.64 | 22.4% |
| eBay Inc | 18.57 | 8.11 | 3.70 | 13.35% | $0.65 | $1.95 | 3.3% |
| Dillard's Inc | 16.48 | 4.86 | 1.44 | 3.86% | $0.14 | $0.58 | 1.41% |
| Vipshop Holdings Ltd | 9.40 | 1.56 | 0.62 | 3.74% | $1.91 | $6.05 | -3.98% |
| Ollie's Bargain Outlet Holdings Inc | 35.20 | 4.17 | 3.07 | 3.49% | $0.09 | $0.27 | 17.49% |
| MINISO Group Holding Ltd | 20.06 | 4.25 | 2.53 | 4.56% | $0.73 | $2.2 | 23.07% |
| Macy's Inc | 11.10 | 1.18 | 0.24 | 1.95% | $0.36 | $2.1 | -1.9% |
| Savers Value Village Inc | 66.15 | 4.86 | 1.37 | 4.52% | $0.06 | $0.23 | 7.9% |
| Kohl's Corp | 8.48 | 0.45 | 0.11 | 3.97% | $0.45 | $1.53 | -4.98% |
| Hour Loop Inc | 69.33 | 10.21 | 0.53 | 18.14% | $0.0 | $0.02 | -3.45% |
| Average | 39.81 | 6.05 | 2.14 | 5.88% | $6.19 | $16.6 | 10.58% |
After a detailed analysis of Amazon.com, the following trends become apparent:
The stock's Price to Earnings ratio of 33.97 is lower than the industry average by 0.85x, suggesting potential value in the eyes of market participants.
It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 7.12 which exceeds the industry average by 1.18x.
The Price to Sales ratio of 3.58, which is 1.67x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
With a Return on Equity (ROE) of 5.68% that is 0.2% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.
The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $36.6 Billion, which is 5.91x above the industry average, implying stronger profitability and robust cash flow generation.
The company has higher gross profit of $86.89 Billion, which indicates 5.23x above the industry average, indicating stronger profitability and higher earnings from its core operations.
The company is experiencing remarkable revenue growth, with a rate of 13.33%, outperforming the industry average of 10.58%.
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.
By evaluating Amazon.com against its top 4 peers in terms of the Debt-to-Equity ratio, the following observations arise:
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 0.4.
This implies that the company relies less on debt financing and has a more favorable balance between debt and equity.
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 the company's assets and sales highly. In terms of ROE, Amazon.com's performance is lower than its industry peers, reflecting less efficient use of shareholder equity. However, the high EBITDA, gross profit, and revenue growth signify strong operational and financial performance relative to competitors in the industry.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
Posted In: AMZN
