Understanding Amazon.com's Position In Broadline Retail Industry Compared To Competitors - Amazon.com (NA

In the dynamic and cutthroat world of business, conducting thorough company analysis is essential 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	35.73	7.61	3.63	5.79%	$36.48	$78.69	8.62%
Alibaba Group Holding Ltd	15.18	1.92	1.97	1.23%	$21.8	$90.83	6.57%
PDD Holdings Inc	11.20	3.23	2.76	4.59%	$16.09	$54.73	10.21%
MercadoLibre Inc	64.30	26.48	5.92	10.56%	$0.92	$2.77	36.97%
Coupang Inc	214	12.44	1.77	2.53%	$0.36	$2.32	11.16%
JD.com Inc	7.94	1.44	0.30	4.6%	$14.27	$47.85	15.78%
eBay Inc	17.90	6.93	3.54	9.95%	$0.77	$1.86	1.13%
Ollie's Bargain Outlet Holdings Inc	40.55	4.67	3.48	2.78%	$0.07	$0.24	13.35%
Vipshop Holdings Ltd	7.77	1.38	0.54	4.85%	$2.45	$6.08	-4.98%
Dillard's Inc	11.57	3.52	1.02	8.97%	$0.26	$0.69	-1.64%
MINISO Group Holding Ltd	16.59	3.76	2.30	3.98%	$0.65	$1.96	18.89%
Macy's Inc	5.89	0.71	0.14	0.84%	$0.31	$2.0	-4.14%
Savers Value Village Inc	72.86	3.83	1.09	-1.13%	$0.03	$0.2	4.51%
Kohl's Corp	7.78	0.25	0.06	-0.4%	$0.23	$1.4	-4.41%
Hour Loop Inc	143	8.65	0.36	11.93%	$0.0	$0.01	4.68%
Average	45.47	5.66	1.8	4.66%	$4.16	$15.21	7.72%

By analyzing Amazon.com, we can infer the following trends:

At 35.73, the stock's Price to Earnings ratio is 0.79x less than the industry average, suggesting favorable growth potential.
It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 7.61 which exceeds the industry average by 1.34x.
The stock's relatively high Price to Sales ratio of 3.63, surpassing the industry average by 2.02x, may indicate an aspect of overvaluation in terms of sales performance.
The Return on Equity (ROE) of 5.79% is 1.13% above the industry average, highlighting efficient use of equity to generate profits.
With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $36.48 Billion, which is 8.77x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.
The company has higher gross profit of $78.69 Billion, which indicates 5.17x 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 8.62%, outperforming the industry average of 7.72%.

Debt To Equity Ratio

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.

When assessing Amazon.com against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:

Compared to its top 4 peers, Amazon.com has a stronger financial position indicated by its lower debt-to-equity ratio of 0.44.
This suggests that the company relies less on debt financing and has a more favorable balance between debt and equity, which can be seen as a positive attribute by investors.

Key Takeaways

For Amazon.com, the PE ratio is low compared to its peers in the Broadline Retail industry, indicating potential undervaluation. The high PB and PS ratios suggest that the market values Amazon.com's assets and sales highly. In terms of ROE, EBITDA, gross profit, and revenue growth, Amazon.com outperforms its industry peers, reflecting strong financial performance and growth potential.

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

AMZNAmazon.com Inc

$231.90-0.34%

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