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

In today's rapidly evolving and fiercely competitive business landscape, it is crucial for investors and industry analysts to conduct comprehensive company evaluations. In this article, we will undertake an in-depth industry comparison, assessing Amazon.com (NASDAQ:AMZN) alongside its primary competitors in the Broadline Retail industry. By meticulously examining crucial financial indicators, market positioning, and growth potential, we aim to provide valuable insights to 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	33.76	7.08	3.56	5.68%	$36.6	$86.89	13.33%
Alibaba Group Holding Ltd	16.40	2.08	2.13	1.23%	$21.8	$90.83	6.57%
PDD Holdings Inc	12.48	3.60	3.07	4.59%	$16.09	$54.73	10.21%
MercadoLibre Inc	58.06	20.86	4.95	9.76%	$0.95	$3.09	33.85%
Coupang Inc	140.70	10.95	1.62	0.71%	$0.34	$2.56	16.4%
JD.com Inc	7.82	1.42	0.29	4.6%	$14.27	$47.85	15.78%
eBay Inc	21.57	9.34	4.46	7.59%	$0.65	$1.95	6.14%
Ollie's Bargain Outlet Holdings Inc	40.90	4.71	3.51	2.78%	$0.07	$0.24	13.35%
Vipshop Holdings Ltd	8.11	1.44	0.56	4.85%	$2.45	$6.08	-4.98%
Dillard's Inc	13.25	4.02	1.17	8.97%	$0.26	$0.69	-1.64%
MINISO Group Holding Ltd	18.26	4.14	2.53	3.98%	$0.65	$1.96	18.89%
Macy's Inc	6.43	0.78	0.16	0.84%	$0.31	$2.0	-4.14%
Savers Value Village Inc	56.35	4.14	1.17	4.52%	$0.06	$0.23	7.9%
Kohl's Corp	11.77	0.38	0.09	-0.4%	$0.23	$1.4	-4.41%
Hour Loop Inc	182	11	0.46	11.93%	$0.0	$0.01	4.68%
Average	42.44	5.63	1.87	4.71%	$4.15	$15.26	8.47%

Upon closer analysis of Amazon.com, the following trends become apparent:

A Price to Earnings ratio of 33.76 significantly below the industry average by 0.8x suggests undervaluation. This can make the stock appealing for those seeking growth.
With a Price to Book ratio of 7.08, which is 1.26x 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 3.56, which is 1.9x the industry average, the stock might be considered overvalued based on sales performance.
The Return on Equity (ROE) of 5.68% is 0.97% above the industry average, highlighting efficient use of equity to generate profits.
Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $36.6 Billion, which is 8.82x above the industry average, indicating stronger profitability and robust cash flow generation.
The company has higher gross profit of $86.89 Billion, which indicates 5.69x above the industry average, indicating stronger profitability and higher earnings from its core operations.
The company's revenue growth of 13.33% exceeds the industry average of 8.47%, indicating strong sales performance and market outperformance.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio assesses the extent to which a company relies on borrowed funds compared to its 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.

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

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

The low P/E ratio suggests Amazon.com may be undervalued compared to its peers in the Broadline Retail industry. However, the high P/B and P/S ratios indicate that the market values the company's assets and sales more highly. Amazon.com's high ROE, EBITDA, gross profit, and revenue growth reflect strong financial performance relative to industry peers.

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

AMZNAmazon.com Inc

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