In today's fast-paced and highly competitive business world, it is crucial for investors and industry followers to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating Amazon.com (NASDAQ:AMZN) in relation to its major competitors in the Broadline Retail industry. By closely examining key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and highlight company's performance in 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 31.46 6.40 3.84 5.43% $46.76 $103.43 13.63%
MercadoLibre Inc 44.85 13.28 3.10 8.62% $1.07 $3.78 44.56%
eBay Inc 23.97 10.54 4.15 11.31% $0.8 $2.12 14.97%
Coupang Inc 184.64 7.94 1.09 -0.56% $0.17 $2.54 10.92%
Dillard's Inc 15.43 4.93 1.34 10.66% $0.3 $0.72 -3.03%
Global E Online Ltd 80.51 5.65 5.74 6.69% $0.13 $0.15 28.05%
Ollie's Bargain Outlet Holdings Inc 21.95 2.76 1.99 4.6% $0.13 $0.31 16.82%
Macy's Inc 8.32 1.05 0.24 11.04% $0.9 $2.97 -1.14%
Kohl's Corp 5.87 0.39 0.10 3.13% $0.39 $1.85 -4.15%
Savers Value Village Inc 58.79 2.92 0.80 5.28% $0.07 $0.26 15.59%
Hour Loop Inc 38.70 9.73 0.48 -8.96% $-0.0 $0.03 3.03%
Average 48.3 5.92 1.9 5.18% $0.4 $1.47 12.56%

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

  • At 31.46, the stock's Price to Earnings ratio is 0.65x less than the industry average, suggesting favorable growth potential.

  • With a Price to Book ratio of 6.4, 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.

  • With a relatively high Price to Sales ratio of 3.84, which is 2.02x the industry average, the stock might be considered overvalued based on sales performance.

  • 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 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 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.

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

  • 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 0.37, 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.