Inquiry Into Amazon.com's Competitor Dynamics In Broadline Retail Industry - Amazon.com (NASDAQ:AMZN)

Amidst the fast-paced and highly competitive business environment of today, conducting comprehensive company analysis is essential for investors and industry enthusiasts. In this article, we will delve into an extensive industry comparison, evaluating Amazon.com (NASDAQ:AMZN) in comparison to its major competitors within the Broadline Retail industry. By analyzing critical financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of 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 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	42.39	7.88	3.13	5.95%	$27.87	$28.32	10.12%
PDD Holdings Inc	19.03	6.59	5.12	13.79%	$33.12	$54.12	130.66%
Alibaba Group Holding Ltd	18.19	1.37	1.54	0.33%	$19.81	$73.78	6.57%
MercadoLibre Inc	72.39	27.70	5.93	15.07%	$0.86	$2.37	41.51%
JD.com Inc	9.75	1.28	0.27	3.14%	$11.88	$39.77	7.04%
Coupang Inc	38.62	10.42	1.48	-1.94%	$0.15	$2.14	25.44%
eBay Inc	10.86	4.94	2.85	3.8%	$0.47	$1.84	1.26%
Vipshop Holdings Ltd	6.35	1.42	0.48	6.22%	$2.97	$6.55	0.4%
Ollie's Bargain Outlet Holdings Inc	29.80	3.77	2.72	3.05%	$0.07	$0.21	10.82%
Dillard's Inc	7.93	3.02	0.83	10.08%	$0.28	$0.71	-2.55%
MINISO Group Holding Ltd	14.88	3.71	2.42	6.39%	$0.78	$1.62	26.04%
Macy's Inc	566	1.12	0.20	1.49%	$0.34	$2.05	-3.34%
Nordstrom Inc	12.16	4.40	0.25	-4.63%	$0.18	$1.13	4.84%
Kohl's Corp	8.02	0.58	0.13	-0.7%	$0.23	$1.46	-5.29%
Savers Value Village Inc	38.65	3.41	0.98	2.38%	$0.05	$0.22	1.99%
D-MARKET Electronic Services & Trading	118.93	8.59	0.82	-3.74%	$0.72	$3.8	44.99%
Average	64.77	5.49	1.73	3.65%	$4.79	$12.78	19.36%

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

With a Price to Earnings ratio of 42.39, which is 0.65x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.
It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 7.88 which exceeds the industry average by 1.44x.
The Price to Sales ratio of 3.13, which is 1.81x 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 5.95%, which is 2.3% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.
With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $27.87 Billion, which is 5.82x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.
With higher gross profit of $28.32 Billion, which indicates 2.22x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.
The company's revenue growth of 10.12% is significantly lower compared to the industry average of 19.36%. This indicates a potential fall in the company's sales performance.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is a key indicator of a company's financial health and its reliance on debt financing.

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 light of the Debt-to-Equity ratio, a comparison between Amazon.com and its top 4 peers reveals the following information:

Amazon.com has a stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.56.
This suggests that the company has a more favorable balance between debt and equity, which can be perceived as a positive indicator by investors.

Key Takeaways

For Amazon.com in the Broadline Retail industry, the PE ratio is low compared to peers, indicating potential undervaluation. The PB and PS ratios are high, suggesting overvaluation relative to industry standards. In terms of ROE, EBITDA, gross profit, and revenue growth, Amazon.com demonstrates strong performance compared to its industry peers, reflecting favorable financial health and growth prospects.

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

AMZNAmazon.com Inc

$272.00-0.02%

Overview

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