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 | 21.13 | 5.14 | 3.68 | 12.61% | $102.16 | $104.83 | 19.62% |
| MercadoLibre Inc | 50.18 | 11.94 | 2.66 | 6.17% | $0.96 | $4.16 | 49.76% |
| eBay Inc | 21.67 | 9.84 | 3.95 | 12.12% | $0.83 | $2.3 | 14.8% |
| Dillard's Inc | 12.85 | 4.13 | 1.33 | 4.71% | $0.27 | $0.72 | -3.66% |
| Global E Online Ltd | 48.12 | 7.87 | 6.83 | 5.26% | $0.05 | $0.13 | 39.15% |
| Macy's Inc | 9.67 | 1.27 | 0.28 | 1.3% | $0.33 | $2.03 | 2.07% |
| Ollie's Bargain Outlet Holdings Inc | 18.93 | 2.45 | 1.73 | 2.99% | $0.09 | $0.28 | 14.25% |
| Kohl's Corp | 8.07 | 0.54 | 0.14 | -0.35% | $0.22 | $1.36 | -2.04% |
| Savers Value Village Inc | 71.07 | 3.68 | 0.98 | 4.95% | $0.07 | $0.25 | 7.43% |
| Hour Loop Inc | 48.60 | 7.70 | 0.45 | 12.6% | $0.0 | $0.02 | 25.24% |
| Average | 32.13 | 5.49 | 2.04 | 5.53% | $0.31 | $1.25 | 16.33% |
By carefully studying Amazon.com, we can deduce the following trends:
-
The stock's Price to Earnings ratio of 21.13 is lower than the industry average by 0.66x, suggesting potential value in the eyes of market participants.
-
With a Price to Book ratio of 5.14, significantly falling below the industry average by 0.94x, it suggests undervaluation and the possibility of untapped growth prospects.
-
The Price to Sales ratio of 3.68, which is 1.8x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
-
The company has a higher Return on Equity (ROE) of 12.61%, which is 7.08% 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 $102.16 Billion, which is 329.55x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.
-
With higher gross profit of $104.83 Billion, which indicates 83.86x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.
-
The company's revenue growth of 19.62% exceeds the industry average of 16.33%, indicating strong sales performance and market outperformance.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio is an important measure to assess the financial structure and risk profile of a company.
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 assessing Amazon.com against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:
-
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 0.4, which can be perceived as a positive aspect by investors.
Key Takeaways
For Amazon.com in the Broadline Retail industry, the PE and PB ratios are low compared to peers, indicating potential undervaluation. However, the high PS ratio suggests overvaluation based on revenue. In terms of profitability, Amazon.com shows high ROE, EBITDA, and gross profit, outperforming industry peers. Additionally, the high revenue growth rate further highlights Amazon.com's strong performance in the Broadline Retail sector.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
Login to comment