In today's fast-paced and competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies before making investment decisions. 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 32.54 6.62 3.97 5.43% $59.58 $94.06 13.63%
MercadoLibre Inc 46.03 13.62 3.18 8.62% $1.07 $3.78 44.56%
eBay Inc 25.25 11 4.37 11.31% $0.77 $2.29 14.97%
Coupang Inc 184.18 7.92 1.09 -0.56% $0.17 $2.54 10.92%
Dillard's Inc 15.12 4.84 1.31 10.66% $0.3 $0.72 -3.03%
Global E Online Ltd 82.96 5.83 5.92 6.69% $0.13 $0.15 28.05%
Macy's Inc 8.24 1.04 0.23 11.04% $0.9 $2.97 -1.14%
Ollie's Bargain Outlet Holdings Inc 21.20 2.65 1.92 4.6% $0.13 $0.31 16.82%
Kohl's Corp 5.96 0.39 0.10 3.13% $0.39 $1.85 -4.15%
Savers Value Village Inc 58.93 2.93 0.80 5.28% $0.07 $0.26 15.59%
Hour Loop Inc 48.80 12.27 0.60 -8.96% $-0.0 $0.03 3.03%
Average 49.67 6.25 1.95 5.18% $0.39 $1.49 12.56%

Upon a comprehensive analysis of Amazon.com, the following trends can be discerned:

  • A Price to Earnings ratio of 32.54 significantly below the industry average by 0.66x suggests undervaluation. This can make the stock appealing for those seeking growth.

  • The elevated Price to Book ratio of 6.62 relative to the industry average by 1.06x suggests company might be overvalued based on its book value.

  • The Price to Sales ratio of 3.97, which is 2.04x 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 has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $59.58 Billion, which is 152.77x above the industry average, indicating stronger profitability and robust cash flow generation.

  • The gross profit of $94.06 Billion is 63.13x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.

  • The company's revenue growth of 13.63% is notably higher compared to the industry average of 12.56%, showcasing exceptional sales performance and strong demand for its products or services.

Debt To Equity Ratio

debt to equity

The debt-to-equity (D/E) ratio is an important measure to assess the financial structure and risk profile of a company.

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:

  • 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 peers, indicating potential undervaluation. The PB and PS ratios are high, suggesting overvaluation relative to industry peers. In terms of ROE, EBITDA, gross profit, and revenue growth, Amazon.com demonstrates strong performance compared to its industry counterparts.

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