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 74% of total, followed by Amazon Web Services (17%), and advertising services (9%). International segments constitute 22% of Amazon's total revenue, 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 29.05 5.44 3.15 5.43% $46.76 $103.43 13.63%
MercadoLibre Inc 43.88 12.99 3.03 8.62% $1.07 $3.78 44.56%
eBay Inc 21.37 8.84 3.84 11.31% $0.8 $2.12 14.97%
Coupang Inc 171.64 7.47 1.01 -0.56% $0.17 $2.54 10.92%
Dillard's Inc 15.71 5.02 1.36 10.66% $0.3 $0.72 -3.03%
Ollie's Bargain Outlet Holdings Inc 23.66 2.97 2.15 4.6% $0.13 $0.31 16.82%
Global E Online Ltd 79.10 5.54 5.64 6.69% $0.13 $0.15 28.05%
Macy's Inc 7.80 0.98 0.22 11.04% $0.9 $2.97 -1.14%
Kohl's Corp 5.42 0.36 0.09 3.13% $0.39 $1.85 -4.15%
Savers Value Village Inc 53.14 2.65 0.72 5.28% $0.07 $0.26 15.59%
Hour Loop Inc 35.30 8.88 0.44 -8.96% $-0.0 $0.03 3.03%
Average 45.7 5.57 1.85 5.18% $0.4 $1.47 12.56%

By closely examining Amazon.com, we can identify the following trends:

  • A Price to Earnings ratio of 29.05 significantly below the industry average by 0.64x suggests undervaluation. This can make the stock appealing for those seeking growth.

  • With a Price to Book ratio of 5.44, significantly falling below the industry average by 0.98x, it suggests undervaluation and the possibility of untapped growth prospects.

  • The Price to Sales ratio of 3.15, which is 1.7x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

  • With a Return on Equity (ROE) of 5.43% that is 0.25% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.

  • The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $46.76 Billion is 116.9x above the industry average, highlighting stronger profitability and robust cash flow generation.

  • The gross profit of $103.43 Billion is 70.36x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.

  • The company's revenue growth of 13.63% exceeds the industry average of 12.56%, indicating strong sales performance and market outperformance.

Debt To Equity Ratio

debt to equity

The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations.

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 0.37.

  • 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 in the Broadline Retail industry, the PE and PB ratios are low compared to peers, indicating potential undervaluation. However, the high PS ratio suggests overvaluation based on revenue. In terms of profitability, Amazon.com shows high ROE, EBITDA, and gross profit, outperforming industry peers. Additionally, the high revenue growth further highlights Amazon.com's strong performance in the Broadline Retail sector.

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