In the ever-evolving and intensely competitive business landscape, conducting a thorough company analysis is of utmost importance for investors and industry followers. In this article, we will carry out an in-depth industry comparison, assessing Amazon.com (NASDAQ:AMZN) alongside its primary competitors in the Broadline Retail industry. By meticulously examining key financial metrics, market positioning, and growth prospects, we aim to offer 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 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 33.25 6.24 3.60 5.43% $46.76 $103.43 13.63%
MercadoLibre Inc 45.02 13.33 3.11 8.62% $1.07 $3.78 44.56%
eBay Inc 22.39 9.26 4.02 11.31% $0.8 $2.12 14.97%
Coupang Inc 179.64 7.81 1.06 -0.56% $0.17 $2.54 10.92%
Dillard's Inc 16.36 5.23 1.42 10.66% $0.3 $0.72 -3.03%
Ollie's Bargain Outlet Holdings Inc 23.11 2.90 2.10 4.6% $0.13 $0.31 16.82%
Global E Online Ltd 77.51 5.44 5.53 6.69% $0.13 $0.15 28.05%
Macy's Inc 8.13 1.02 0.23 11.04% $0.9 $2.97 -1.14%
Kohl's Corp 5.58 0.37 0.10 3.13% $0.39 $1.85 -4.15%
Savers Value Village Inc 57.71 2.88 0.78 5.28% $0.07 $0.26 15.59%
Hour Loop Inc 37.60 9.46 0.46 -8.96% $-0.0 $0.03 3.03%
Average 47.3 5.77 1.88 5.18% $0.4 $1.47 12.56%

Through a detailed examination of Amazon.com, we can deduce the following trends:

  • The stock's Price to Earnings ratio of 33.25 is lower than the industry average by 0.7x, suggesting potential value in the eyes of market participants.

  • With a Price to Book ratio of 6.24, which is 1.08x 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.

  • The Price to Sales ratio of 3.6, which is 1.91x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

  • The company has a higher Return on Equity (ROE) of 5.43%, which is 0.25% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.

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

  • With higher gross profit of $103.43 Billion, which indicates 70.36x above the industry average, the company demonstrates 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 is a measure that indicates the level of debt a company has taken on relative to the value of its assets net of liabilities.

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 comparing Amazon.com with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:

  • When comparing the debt-to-equity ratio, Amazon.com is in a stronger financial position compared to its top 4 peers.

  • The company has a lower level of debt relative to its equity, indicating a more favorable balance between the two with a lower debt-to-equity ratio of 0.37.

Key Takeaways

For Amazon.com, the PE ratio is low compared to its peers in the Broadline Retail industry, indicating potential undervaluation. The high PB and PS ratios suggest that the market values Amazon.com's assets and sales highly. Amazon.com's high ROE, EBITDA, gross profit, and revenue growth outperform its industry peers, reflecting strong financial performance and growth potential.

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