Comprehensive Analysis of Amazon.com and Its Rivals
Insights into the Broadline Retail Industry
In today's fast-paced and competitive business realm, understanding company dynamics is crucial for investors and market analysts. This analysis provides a detailed industry comparison, focusing particularly on Amazon.com (NASDAQ: AMZN) and its significant competitors in the Broadline Retail sector. We will delve into vital financial metrics, market standings, and prospects for growth, aiming to equip stakeholders with essential insights regarding Amazon's performance within this arena.
Understanding Amazon.com
Amazon stands as a premier online retailer and a platform for third-party sellers. Notably, retail-related revenue accounts for about 75% of its total earnings, followed by Amazon Web Services, contributing around 15%. The remaining share comes from advertising services and other offerings. International revenues contribute significantly, with key markets including Germany, the United Kingdom, and Japan.
Key Financial Indicators
The following critical metrics provide a snapshot of Amazon's position compared to competitors within the Broadline Retail industry:
Valuation Ratios
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Amazon.com Inc | 37.18 | 7.92 | 3.77 | 5.79% | $36.48 | $78.69 | 8.62% |
| Alibaba Group Holding Ltd | 16.41 | 2.08 | 2.13 | 1.23% | $21.8 | $90.83 | 6.57% |
| PDD Holdings Inc | 12.69 | 3.66 | 3.13 | 4.59% | $16.09 | $54.73 | 10.21% |
| MercadoLibre Inc | 58.90 | 24.26 | 5.42 | 10.56% | $0.92 | $2.77 | 36.97% |
| Coupang Inc | 218.14 | 12.68 | 1.80 | 2.53% | $0.36 | $2.32 | 11.16% |
| JD.com Inc | 8.25 | 1.50 | 0.31 | 4.6% | $14.27 | $47.85 | 15.78% |
| eBay Inc | 19.69 | 7.63 | 3.89 | 9.95% | $0.77 | $1.86 | 1.13% |
| Vipshop Holdings Ltd | 8.50 | 1.51 | 0.59 | 4.85% | $2.45 | $6.08 | -4.98% |
| Ollie's Bargain Outlet Holdings Inc | 40.60 | 4.68 | 3.48 | 2.78% | $0.07 | $0.24 | 13.35% |
| Dillard's Inc | 13.69 | 4.16 | 1.21 | 8.97% | $0.26 | $0.69 | -1.64% |
| MINISO Group Holding Ltd | 15.99 | 3.62 | 2.21 | 3.98% | $0.65 | $1.96 | 18.89% |
| Macy's Inc | 6.45 | 0.78 | 0.16 | 0.84% | $0.31 | $2.0 | -4.14% |
| Savers Value Village Inc | 74.50 | 3.91 | 1.11 | -1.13% | $0.03 | $0.2 | 4.51% |
| Kohl's Corp | 11.28 | 0.36 | 0.09 | -0.4% | $0.23 | $1.4 | -4.41% |
| Hour Loop Inc | 194 | 11.73 | 0.49 | 11.93% | $0.0 | $0.01 | 4.68% |
From these metrics, Amazon demonstrates distinct traits among its industry peers:
The Price to Earnings ratio of 37.18 shows it is potentially undervalued compared to the industry average.
A high Price to Book ratio of 7.92 may indicate that the company appears overvalued in relation to its book value.
The Price to Sales ratio of 3.77 suggests it is priced higher than competitors based on sales performance, an indication of possible overvaluation.
The Return on Equity at 5.79% underscores Amazon's proficient use of equity in generating profit.
EBITDA stands at $36.48 billion, reflecting robust profitability and cash flow when considered against others in the market.
Amazon's gross profit of $78.69 billion signifies strong earnings relative to its industry.
Lastly, an impressive revenue growth of 8.62% outpaces the industry, showcasing Amazon's strong economic momentum.
Debt Management and Financial Stability
The debt-to-equity (D/E) ratio is an important gauge of a company's financial health, representing how much debt it has taken on compared to its equity.
When considering this ratio among major competitors, Amazon's position stands out as particularly strong, marked by a lower D/E ratio of 0.44.
This indicates Amazon maintains a more balanced approach of debt management relative to its equity.
Summarizing Amazon's Financial Landscape
In summary, while Amazon.com presents a low P/E ratio, its high P/B and P/S ratios indicate significant market valuation of its assets and sales. The company's strong performances in ROE, EBITDA, gross profit, and revenue growth reflect its leading position and robust potential within the Broadline Retail industry.
Frequently Asked Questions
What is the primary focus of this analysis?
This analysis focuses on comparing Amazon.com with its competitors in the Broadline Retail industry, highlighting financial metrics and market performance.
How does Amazon's P/E ratio compare to the industry average?
Amazon's P/E ratio of 37.18 is below the industry average, suggesting potential undervaluation.
What is the significance of the debt-to-equity ratio?
The debt-to-equity ratio indicates the level of a company's debt compared to its equity, reflecting financial stability.
How does Amazon's revenue growth compare to its peers?
Amazon boasts a revenue growth rate of 8.62%, outperforming the industry average of 7.72%.
Why is Amazon's market capitalization important?
Amazon's market capitalization reflects investor confidence and the company's overall value in the retail sector.
About The Author
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