Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In the dynamic and fiercely competitive business environment, conducting a thorough analysis of companies is crucial for investors and industry enthusiasts. In this article, we will perform an extensive industry comparison, evaluating Amazon.com (NASDAQ:AMZN) in relation to its major competitors in the Broadline Retail industry. By closely examining crucial financial metrics, market position, and growth prospects, we aim to offer valuable insights for investors and shed light on company's performance within 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.
CompanyP/EP/BP/SROEEBITDA (in billions)Gross Profit (in billions)Revenue Growth| Amazon.com Inc | 61.66 | 9.20 | 3.26 | 5.52% | $28.22 | $29.27 | 13.91% |
| Alibaba Group Holding Ltd | 13.62 | 1.30 | 1.46 | 1.41% | $37.55 | $104.13 | 5.08% |
| PDD Holdings Inc | 28 | 7.25 | 6.52 | 10.11% | $19.17 | $42.01 | 93.89% |
| MercadoLibre Inc | 80.40 | 25.83 | 5.51 | 5.68% | $0.45 | $1.96 | 41.94% |
| JD.com Inc | 12.76 | 1.31 | 0.28 | 1.47% | $4.23 | $43.5 | 23.57% |
| Coupang Inc | 24.68 | 8.12 | 1.37 | 29.43% | $0.26 | $1.68 | 23.16% |
| eBay Inc | 10.03 | 4.23 | 2.76 | 11.78% | $1.34 | $1.85 | 2.07% |
| Vipshop Holdings Ltd | 8.60 | 1.82 | 0.62 | 8.35% | $3.79 | $8.23 | 52.31% |
| Dillard's Inc | 9.80 | 4.19 | 1.05 | 14.27% | $0.33 | $0.81 | 43.52% |
| MINISO Group Holding Ltd | 22.53 | 5.18 | 3.55 | 7.0% | $0.86 | $1.58 | 36.74% |
| Macy's Inc | 56.58 | 1.43 | 0.25 | -1.71% | $0.16 | $3.3 | 66.24% |
| Ollie's Bargain Outlet Holdings Inc | 29.40 | 3.19 | 2.32 | 2.23% | $0.05 | $0.19 | 14.82% |
| Savers Value Village Inc | 53.35 | 7.78 | 1.89 | 12.73% | $0.06 | $0.22 | 4.35% |
| Nordstrom Inc | 23.78 | 3.92 | 0.19 | 9.55% | $0.29 | $1.24 | -6.37% |
| D-MARKET Electronic Services & Trading | 13.23 | 4.54 | 0.77 | -5.6% | $0.79 | $2.41 | 52.02% |
| Average | 27.63 | 5.72 | 2.04 | 7.62% | $4.95 | $15.22 | 32.38% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } After examining Amazon.com, the following trends can be inferred:
- Notably, the current Price to Earnings ratio for this stock, 61.66, is 2.23x above the industry norm, reflecting a higher valuation relative to the industry.
- With a Price to Book ratio of 9.2, which is 1.61x the industry average, Amazon.com might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.
- With a relatively high Price to Sales ratio of 3.26, which is 1.6x the industry average, the stock might be considered overvalued based on sales performance.
- With a Return on Equity (ROE) of 5.52% that is 2.1% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.
- With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $28.22 Billion, which is 5.7x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.
- The gross profit of $29.27 Billion is 1.92x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
- The company is witnessing a substantial decline in revenue growth, with a rate of 13.91% compared to the industry average of 32.38%, which indicates a challenging sales environment.
The debt-to-equity (D/E) ratio provides insights into the proportion of debt a company has in relation to its equity and asset value.
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 terms of the Debt-to-Equity ratio, Amazon.com stands in comparison with its top 4 peers, leading to the following comparisons:
- Amazon.com demonstrates a stronger financial position compared to its top 4 peers in the sector.
- With a lower debt-to-equity ratio of 0.67, the company relies less on debt financing and maintains a healthier balance between debt and equity, which can be viewed positively by investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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