In the ever-changing and fiercely competitive business landscape, conducting thorough company analysis is crucial for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Amazon.com (NASDAQ:AMZN) and its primary competitors in the Broadline Retail industry. By closely examining key financial metrics, market position, and growth prospects, our aim is 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 | 49.30 | 9.36 | 3.97 | 6.19% | $32.08 | $31.0 | 11.04% |
| Alibaba Group Holding Ltd | 17.74 | 1.56 | 1.61 | 4.64% | $54.02 | $92.47 | 5.21% |
| PDD Holdings Inc | 10.36 | 3.80 | 3.01 | 9.38% | $29.18 | $59.65 | 44.33% |
| MercadoLibre Inc | 65.08 | 23.24 | 5.09 | 10.37% | $0.72 | $2.44 | 35.27% |
| JD.com Inc | 12.51 | 1.79 | 0.39 | 5.22% | $15.92 | $45.04 | 5.12% |
| Coupang Inc | 39.01 | 9.53 | 1.38 | 1.74% | $0.28 | $2.27 | 27.2% |
| eBay Inc | 16.28 | 5.71 | 3.21 | 11.59% | $0.95 | $1.85 | 3.04% |
| Dillard’s Inc | 12.47 | 3.92 | 1.17 | 6.37% | $0.21 | $0.63 | -3.53% |
| MINISO Group Holding Ltd | 24.29 | 5.74 | 3.96 | 6.68% | $0.88 | $2.03 | 19.29% |
| Vipshop Holdings Ltd | 6.57 | 1.36 | 0.49 | 2.76% | $1.47 | $4.96 | -9.18% |
| Ollie’s Bargain Outlet Holdings Inc | 33.83 | 4.31 | 3.12 | 2.24% | $0.06 | $0.21 | 7.79% |
| Nordstrom Inc | 15.34 | 4.05 | 0.27 | 4.75% | $0.3 | $1.31 | 4.34% |
| Macy’s Inc | 23.57 | 0.96 | 0.17 | 0.66% | $0.29 | $2.04 | -2.68% |
| Savers Value Village Inc | 24.85 | 4.22 | 1.26 | 5.09% | $0.07 | $0.22 | 0.53% |
| Kohl’s Corp | 5.95 | 0.39 | 0.09 | 0.58% | $0.28 | $1.57 | -8.49% |
| Groupon Inc | 15.64 | 10.73 | 0.80 | 34.72% | $0.03 | $0.1 | -9.48% |
| Average | 21.57 | 5.42 | 1.73 | 7.12% | $6.98 | $14.45 | 7.92% |
When closely examining Amazon.com, the following trends emerge:
- Notably, the current Price to Earnings ratio for this stock, 49.3, is 2.29x above the industry norm, reflecting a higher valuation relative to the industry.
- With a Price to Book ratio of 9.36, which is 1.73x 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 3.97, which is 2.29x the industry average, the stock might be considered overvalued based on sales performance.
- With a Return on Equity (ROE) of 6.19% that is 0.93% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.
- The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $32.08 Billion is 4.6x above the industry average, highlighting stronger profitability and robust cash flow generation.
- Compared to its industry, the company has higher gross profit of $31.0 Billion, which indicates 2.15x 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 11.04%, outperforming the industry average of 7.92%.