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 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 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 | 48.51 | 9.21 | 3.91 | 6.19% | $32.08 | $31.0 | 11.04% |
| Alibaba Group Holding Ltd | 17.84 | 1.57 | 1.62 | 4.64% | $54.02 | $92.47 | 5.21% |
| PDD Holdings Inc | 9.81 | 3.60 | 2.85 | 9.38% | $29.18 | $59.65 | 44.33% |
| MercadoLibre Inc | 61.47 | 21.95 | 4.80 | 10.37% | $0.72 | $2.44 | 35.27% |
| JD.com Inc | 11.71 | 1.67 | 0.37 | 5.22% | $15.92 | $45.04 | 5.12% |
| Coupang Inc | 40.11 | 9.80 | 1.42 | 1.74% | $0.28 | $2.27 | 27.2% |
| eBay Inc | 16.07 | 5.64 | 3.17 | 11.59% | $0.95 | $1.85 | 3.04% |
| MINISO Group Holding Ltd | 25.47 | 6.02 | 4.15 | 6.68% | $0.88 | $2.03 | 19.29% |
| Vipshop Holdings Ltd | 6.54 | 1.36 | 0.49 | 2.76% | $1.47 | $4.96 | -9.18% |
| Ollie's Bargain Outlet Holdings Inc | 35.65 | 4.54 | 3.28 | 2.24% | $0.06 | $0.21 | 7.79% |
| Dillard's Inc | 11.71 | 3.68 | 1.10 | 6.37% | $0.21 | $0.63 | -3.53% |
| Macy's Inc | 29.67 | 1.21 | 0.22 | 0.66% | $0.29 | $2.04 | -3.79% |
| Nordstrom Inc | 15.33 | 4.05 | 0.27 | 4.75% | $0.3 | $1.31 | 4.34% |
| Savers Value Village Inc | 23.02 | 3.91 | 1.16 | 5.09% | $0.07 | $0.22 | 0.53% |
| Kohl's Corp | 6.69 | 0.43 | 0.10 | 0.58% | $0.28 | $1.57 | -8.49% |
| Groupon Inc | 17.41 | 11.94 | 0.89 | 34.72% | $0.03 | $0.1 | -9.48% |
| Average | 21.9 | 5.42 | 1.73 | 7.12% | $6.98 | $14.45 | 7.84% |
Upon a comprehensive analysis of Amazon.com, the following trends can be discerned:
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The Price to Earnings ratio of 48.51 for this company is 2.22x above the industry average, indicating a premium valuation associated with the stock.
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It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 9.21 which exceeds the industry average by 1.7x.
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With a relatively high Price to Sales ratio of 3.91, which is 2.26x the industry average, the stock might be considered overvalued based on sales performance.
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The Return on Equity (ROE) of 6.19% is 0.93% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.
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The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $32.08 Billion, which is 4.6x above the industry average, indicating stronger profitability and robust cash flow generation.
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With higher gross profit of $31.0 Billion, which indicates 2.15x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.
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The company is experiencing remarkable revenue growth, with a rate of 11.04%, outperforming the industry average of 7.84%.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio assesses the extent to which a company relies on borrowed funds compared to its equity.
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:
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When comparing the debt-to-equity ratio, Amazon.com is in a stronger financial position compared to its top 4 peers.
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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 0.52.
Key Takeaways
For Amazon.com, the PE, PB, and PS ratios are all high compared to its peers in the Broadline Retail industry, indicating potentially overvalued stock. The low ROE suggests lower profitability compared to industry peers. However, the high EBITDA, gross profit, and revenue growth indicate strong operational performance and growth potential relative to competitors in the industry.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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