Insights Into Amazon.com's Performance Versus Peers In Broadline Retail Sector - Amazon.com (NASDAQ:AMZN)

In today's fast-paced and competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies before making investment decisions. 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 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	43.72	8.30	3.52	6.19%	$32.08	$31.0	11.04%
Alibaba Group Holding Ltd	17.91	1.58	1.62	4.64%	$54.02	$92.47	5.21%
PDD Holdings Inc	12.67	4.66	3.66	13.54%	$37.97	$63.36	85.65%
MercadoLibre Inc	67.99	24.28	5.31	10.37%	$0.72	$2.44	35.27%
JD.com Inc	11.31	1.61	0.35	5.22%	$15.92	$45.04	5.12%
Coupang Inc	42.52	10.39	1.51	1.74%	$0.28	$2.27	27.2%
eBay Inc	15.39	5.40	3.04	11.59%	$0.95	$1.85	3.04%
Vipshop Holdings Ltd	6.32	1.31	0.47	5.1%	$2.32	$6.34	-3.6%
Dillard's Inc	11.01	3.46	1.03	6.37%	$0.15	$0.58	-4.19%
MINISO Group Holding Ltd	17.67	4.10	2.88	6.26%	$0.79	$1.77	24.08%
Ollie's Bargain Outlet Holdings Inc	27.26	3.45	2.50	3.14%	$0.08	$0.22	12.41%
Macy's Inc	23.29	0.98	0.18	3.53%	$0.44	$2.16	-3.48%
Nordstrom Inc	13.10	3.93	0.25	13.68%	$0.4	$1.49	3.23%
Kohl's Corp	6.67	0.49	0.11	1.73%	$0.35	$1.6	-4.18%
Savers Value Village Inc	18.93	3.22	0.96	5.09%	$0.07	$0.22	0.53%
Groupon Inc	12.87	8.83	0.66	34.72%	$0.03	$0.1	-9.48%
Average	20.33	5.18	1.64	8.45%	$7.63	$14.79	11.79%

After a detailed analysis of Amazon.com, the following trends become apparent:

Notably, the current Price to Earnings ratio for this stock, 43.72, is 2.15x above the industry norm, reflecting a higher valuation relative to the industry.
It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 8.3 which exceeds the industry average by 1.6x.
The Price to Sales ratio of 3.52, which is 2.15x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
The company has a lower Return on Equity (ROE) of 6.19%, which is 2.26% below the industry average. This indicates potential inefficiency in utilizing equity to generate profits, which could be attributed to various factors.
The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $32.08 Billion, which is 4.2x above the industry average, implying stronger profitability and robust cash flow generation.
The company has higher gross profit of $31.0 Billion, which indicates 2.1x above the industry average, indicating stronger profitability and higher earnings from its core operations.
The company's revenue growth of 11.04% is significantly lower compared to the industry average of 11.79%. This indicates a potential fall in the company's sales performance.

Debt To Equity Ratio

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 terms of the Debt-to-Equity ratio, Amazon.com stands in comparison with its top 4 peers, leading to the following comparisons:

Amazon.com is in a relatively stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.52.
This implies that the company relies less on debt financing and has a more favorable balance between debt and equity.

Key Takeaways

For Amazon.com, the PE, PB, and PS ratios are all high compared to its peers in the Broadline Retail industry, indicating that the stock may be overvalued. The low ROE suggests that Amazon.com is not generating significant returns on shareholder equity. However, the high EBITDA and gross profit margins show strong operational performance. The low revenue growth rate may be a concern for Amazon.com compared to its industry peers.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

AMZNAmazon.com Inc

$277.05-%

Overview

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