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

In today's rapidly changing and fiercely competitive business landscape, it is vital for investors and industry enthusiasts to carefully evaluate companies. In this article, we will perform a comprehensive industry comparison, evaluating Amazon.com (NASDAQ:AMZN) against its key competitors in the Broadline Retail industry. By analyzing important 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	32.58	6.83	3.44	5.68%	$36.6	$86.89	13.33%
Alibaba Group Holding Ltd	15.75	1.99	2.05	1.23%	$21.8	$90.83	6.57%
PDD Holdings Inc	12.12	3.50	2.99	4.59%	$16.09	$54.73	10.21%
MercadoLibre Inc	59.47	21.37	5.07	10.56%	$0.92	$2.77	36.97%
Coupang Inc	149.50	11.59	1.72	2.53%	$0.36	$2.32	11.16%
JD.com Inc	7.66	1.39	0.29	4.6%	$14.27	$47.85	15.78%
eBay Inc	20.28	8.78	4.19	7.59%	$0.65	$1.95	6.14%
Ollie's Bargain Outlet Holdings Inc	42.59	4.91	3.66	2.78%	$0.07	$0.24	13.35%
Vipshop Holdings Ltd	7.97	1.42	0.55	4.85%	$2.45	$6.08	-4.98%
Dillard's Inc	12.82	3.89	1.13	8.97%	$0.26	$0.69	-1.64%
MINISO Group Holding Ltd	17.95	4.06	2.48	3.98%	$0.65	$1.96	18.89%
Macy's Inc	6.06	0.73	0.15	0.84%	$0.31	$2.0	-4.14%
Savers Value Village Inc	56.75	4.17	1.18	4.52%	$0.06	$0.23	7.9%
Kohl's Corp	10.55	0.34	0.08	-0.4%	$0.23	$1.4	-4.41%
Hour Loop Inc	174	10.52	0.44	11.93%	$0.0	$0.01	4.68%
Average	42.39	5.62	1.86	4.9%	$4.15	$15.22	8.32%

Through an analysis of Amazon.com, we can infer the following trends:

A Price to Earnings ratio of 32.58 significantly below the industry average by 0.77x suggests undervaluation. This can make the stock appealing for those seeking growth.
The elevated Price to Book ratio of 6.83 relative to the industry average by 1.22x suggests company might be overvalued based on its book value.
With a relatively high Price to Sales ratio of 3.44, which is 1.85x the industry average, the stock might be considered overvalued based on sales performance.
The Return on Equity (ROE) of 5.68% is 0.78% above the industry average, highlighting efficient use of equity to generate profits.
The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $36.6 Billion, which is 8.82x above the industry average, implying stronger profitability and robust cash flow generation.
Compared to its industry, the company has higher gross profit of $86.89 Billion, which indicates 5.71x above the industry average, indicating stronger profitability and higher earnings from its core operations.
With a revenue growth of 13.33%, which surpasses the industry average of 8.32%, the company is demonstrating robust sales expansion and gaining market share.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio gauges the extent to which a company has financed its operations through debt relative to equity.

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 evaluating Amazon.com alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:

When considering the debt-to-equity ratio, Amazon.com exhibits a stronger financial position compared to its top 4 peers.
This indicates that the company has a favorable balance between debt and equity, with a lower debt-to-equity ratio of 0.4, which can be perceived as a positive aspect by investors.

Key Takeaways

For Amazon.com in the Broadline Retail industry, the PE ratio is low compared to peers, indicating potential undervaluation. The PB and PS ratios are high, suggesting overvaluation relative to industry standards. In terms of ROE, EBITDA, gross profit, and revenue growth, Amazon.com demonstrates strong performance compared to its industry peers, reflecting robust financial health and growth potential.

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

AMZNAmazon.com Inc

$270.48-0.06%

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