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

In the dynamic and fiercely competitive business environment, conducting a thorough analysis of companies is crucial for investors and industry enthusiasts. In this article, we will perform an extensive industry comparison, evaluating Amazon.com (NASDAQ:AMZN) in relation to its major competitors in the Broadline Retail industry. By closely examining crucial financial metrics, market position, and growth prospects, we aim to offer 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	35.22	7.38	3.72	5.68%	$36.6	$86.89	13.33%
Alibaba Group Holding Ltd	16.23	2.05	2.11	1.23%	$21.8	$90.83	6.57%
PDD Holdings Inc	12.74	3.67	3.14	4.59%	$16.09	$54.73	10.21%
MercadoLibre Inc	59.08	21.23	5.03	9.76%	$0.95	$3.09	33.85%
Coupang Inc	140.70	10.95	1.62	0.71%	$0.34	$2.56	16.4%
eBay Inc	22.38	9.69	4.63	7.59%	$0.65	$1.95	6.14%
JD.com Inc	8.91	1.42	0.27	2.68%	$7.34	$56.64	22.4%
Vipshop Holdings Ltd	9.14	1.52	0.60	3.74%	$1.91	$6.05	-3.98%
Ollie's Bargain Outlet Holdings Inc	41.08	4.73	3.53	2.78%	$0.07	$0.24	13.35%
Dillard's Inc	14.24	4.19	1.24	8.97%	$0.26	$0.69	-1.64%
MINISO Group Holding Ltd	17.96	4.07	2.49	3.98%	$0.65	$1.96	18.89%
Macy's Inc	6.47	0.78	0.16	0.84%	$0.31	$2.0	-4.14%
Savers Value Village Inc	56.50	4.15	1.17	4.52%	$0.06	$0.23	7.9%
Kohl's Corp	12.63	0.41	0.10	-0.4%	$0.23	$1.4	-4.41%
Hour Loop Inc	58.50	8.62	0.45	18.14%	$0.0	$0.02	-3.45%
Average	34.04	5.53	1.9	4.94%	$3.62	$15.89	8.43%

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

At 35.22, the stock's Price to Earnings ratio significantly exceeds the industry average by 1.03x, suggesting a premium valuation relative to industry peers.
It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 7.38 which exceeds the industry average by 1.33x.
The stock's relatively high Price to Sales ratio of 3.72, surpassing the industry average by 1.96x, may indicate an aspect of overvaluation in terms of sales performance.
The Return on Equity (ROE) of 5.68% is 0.74% 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 10.11x above the industry average, indicating stronger profitability and robust cash flow generation.
Compared to its industry, the company has higher gross profit of $86.89 Billion, which indicates 5.47x above the industry average, indicating stronger profitability and higher earnings from its core operations.
The company's revenue growth of 13.33% is notably higher compared to the industry average of 8.43%, showcasing exceptional sales performance and strong demand for its products or services.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is a financial metric that helps determine the level of financial risk associated with a company's capital structure.

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:

Compared to its top 4 peers, Amazon.com has a stronger financial position indicated by its lower debt-to-equity ratio of 0.4.
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, PB, and PS ratios are all high compared to its peers in the Broadline Retail industry, indicating that the stock may be overvalued. On the other hand, Amazon.com's high ROE, EBITDA, gross profit, and revenue growth suggest strong operational performance and growth potential relative to industry competitors.

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

AMZNAmazon.com Inc

$242.560.36%

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