Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In today's fast-paced and highly competitive business world, it is crucial for investors and industry followers to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating Amazon.com (NASDAQ:AMZN) in relation to its major competitors in the Broadline Retail industry. By closely examining key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and highlight company's performance in the industry.
Amazon.com Background Amazon is a leading online retailer and one of the highest-grossing e-commerce aggregators, with $386 billion in net sales and approximately $578 billion in estimated physical/digital online gross merchandise volume in 2021. Retail-related revenue represents approximately 80% of the total, followed by Amazon Web Services' cloud computing, storage, database, and other offerings (10%-15%), advertising services (5%), and other. International segments constitute 25%-30% of Amazon's non-AWS sales, led by Germany, the United Kingdom, and Japan.
| Amazon.com Inc | 54.92 | 8.15 | 2.91 | 5.62% | $25.13 | $24.54 | 12.57% |
| Alibaba Group Holding Ltd | 10.15 | 1.24 | 1.46 | 2.7% | $42.54 | $85.13 | 8.5% |
| PDD Holdings Inc | 28.45 | 7.37 | 6.62 | 10.11% | $19.17 | $42.01 | 93.89% |
| MercadoLibre Inc | 89.20 | 32.25 | 6.69 | 14.38% | $0.78 | $2.0 | 39.78% |
| JD.com Inc | 10.48 | 1.08 | 0.23 | 3.51% | $11.51 | $38.75 | 1.71% |
| Coupang Inc | 57.96 | 8.49 | 1.08 | 3.2% | $0.2 | $1.57 | 21.21% |
| eBay Inc | 8.37 | 3.67 | 2.23 | 23.37% | $1.76 | $1.79 | 5.04% |
| Vipshop Holdings Ltd | 8.86 | 1.87 | 0.64 | 3.65% | $1.57 | $5.38 | 5.32% |
| Dillard's Inc | 8.52 | 3.52 | 0.96 | 8.82% | $0.24 | $0.67 | -4.38% |
| MINISO Group Holding Ltd | 19.09 | 4.39 | 3.01 | 7.0% | $0.86 | $1.58 | 36.74% |
| Macy's Inc | 7.53 | 1.22 | 0.21 | 1.03% | $0.31 | $2.14 | -7.85% |
| Ollie's Bargain Outlet Holdings Inc | 29.30 | 3.18 | 2.31 | 2.23% | $0.05 | $0.19 | 14.82% |
| Savers Value Village Inc | 86.57 | 9.86 | 2.08 | -10.39% | $0.03 | $0.23 | 3.81% |
| Nordstrom Inc | 24.68 | 4.07 | 0.20 | 9.55% | $0.29 | $1.24 | -6.37% |
| Qurate Retail Inc | 4.60 | 0.58 | 0.03 | 0.17% | $0.26 | $0.88 | -9.66% |
| D-MARKET Electronic Services & Trading | 12.27 | 4.21 | 0.71 | -5.6% | $0.79 | $2.41 | 52.02% |
| Average | 27.07 | 5.8 | 1.9 | 4.92% | $5.36 | $12.4 | 16.97% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } When analyzing Amazon.com, the following trends become evident:
- Notably, the current Price to Earnings ratio for this stock, 54.92, is 2.03x above the industry norm, reflecting a higher valuation relative to the industry.
- The elevated Price to Book ratio of 8.15 relative to the industry average by 1.41x suggests company might be overvalued based on its book value.
- The Price to Sales ratio of 2.91, which is 1.53x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
- The Return on Equity (ROE) of 5.62% is 0.7% above the industry average, highlighting efficient use of equity to generate profits.
- Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $25.13 Billion, which is 4.69x above the industry average, indicating stronger profitability and robust cash flow generation.
- The company has higher gross profit of $24.54 Billion, which indicates 1.98x above the industry average, indicating stronger profitability and higher earnings from its core operations.
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The company's revenue growth of 12.57% is significantly below the industry average of 16.97%. This suggests a potential struggle in generating increased sales volume.
The debt-to-equity (D/E) ratio is a measure that indicates the level of debt a company has taken on relative to the value of its assets net of liabilities.
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:
- Among its top 4 peers, Amazon.com has a stronger financial position with a lower debt-to-equity ratio of 0.75.
- This indicates that the company relies less on debt financing and maintains a more favorable balance between debt and equity, which can be viewed positively by investors.
In terms of ROE, EBITDA, and gross profit, Amazon.com performs well with high values. This indicates that the company is efficient in generating profits from its equity, operating income, and sales.
However, Amazon.com's revenue growth is relatively low compared to its industry peers. This suggests that the company may be experiencing slower expansion in its sales compared to its competitors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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