Comparing Amazon.com With Industry Competitors In Broadline Retail Industry - Amazon.com (NASDAQ:AMZN)

In today's rapidly changing and fiercely competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies. 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	34.75	7.28	3.67	5.68%	$36.6	$86.89	13.33%
Alibaba Group Holding Ltd	16.63	2.10	2.16	1.23%	$21.8	$90.83	6.57%
PDD Holdings Inc	13.90	3.61	3.32	4.59%	$16.09	$54.73	10.21%
MercadoLibre Inc	59.47	21.37	5.07	9.76%	$0.95	$3.09	33.85%
Coupang Inc	142.70	11.11	1.64	0.71%	$0.34	$2.56	16.4%
JD.com Inc	8.98	1.43	0.27	2.68%	$7.34	$56.64	22.4%
eBay Inc	21.90	9.48	4.53	7.59%	$0.65	$1.95	6.14%
Vipshop Holdings Ltd	9.13	1.52	0.60	3.74%	$1.91	$6.05	-3.98%
Dillard's Inc	14.77	4.35	1.29	3.85%	$0.26	$0.69	-0.71%
Ollie's Bargain Outlet Holdings Inc	40.05	4.62	3.44	2.78%	$0.07	$0.24	13.35%
MINISO Group Holding Ltd	24.28	5.17	3.06	4.56%	$0.73	$2.2	23.07%
Macy's Inc	6.70	0.81	0.16	0.84%	$0.31	$2.0	-4.14%
Savers Value Village Inc	56.10	4.12	1.16	4.52%	$0.06	$0.23	7.9%
Kohl's Corp	12.80	0.41	0.10	-0.4%	$0.23	$1.4	-4.41%
Hour Loop Inc	50.43	7.43	0.38	18.14%	$0.0	$0.02	-3.45%
Average	34.13	5.54	1.94	4.61%	$3.62	$15.9	8.8%

After thoroughly examining Amazon.com, the following trends can be inferred:

Notably, the current Price to Earnings ratio for this stock, 34.75, is 1.02x above the industry norm, reflecting a higher valuation relative to the industry.
The elevated Price to Book ratio of 7.28 relative to the industry average by 1.31x suggests company might be overvalued based on its book value.
The Price to Sales ratio of 3.67, which is 1.89x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
The Return on Equity (ROE) of 5.68% is 1.07% 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.
The gross profit of $86.89 Billion is 5.46x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
With a revenue growth of 13.33%, which surpasses the industry average of 8.8%, 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.

In terms of the Debt-to-Equity ratio, Amazon.com can be assessed by comparing it to its top 4 peers, resulting in the following observations:

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 a potentially overvalued stock. 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. It is important to consider both valuation multiples and operational metrics when evaluating Amazon.com within the Broadline Retail sector.

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

AMZNAmazon.com Inc

$242.100.24%

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