In the dynamic and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Amazon.com AMZN and its primary competitors in the Broadline Retail industry. By closely examining key financial metrics, market position, and growth prospects, our aim is 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 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 | 50.18 | 9.53 | 4.05 | 6.19% | $32.08 | $31.0 | 11.04% |
| Alibaba Group Holding Ltd | 18.46 | 1.62 | 1.67 | 4.64% | $54.02 | $92.47 | 5.21% |
| PDD Holdings Inc | 11.04 | 4.05 | 3.21 | 9.38% | $29.18 | $59.65 | 44.33% |
| MercadoLibre Inc | 65.39 | 23.35 | 5.11 | 10.37% | $0.72 | $2.44 | 35.27% |
| JD.com Inc | 13.18 | 1.88 | 0.41 | 5.22% | $15.92 | $45.04 | 5.12% |
| Coupang Inc | 39.66 | 9.69 | 1.40 | 1.74% | $0.28 | $2.27 | 27.2% |
| eBay Inc | 16.32 | 5.73 | 3.22 | 11.59% | $0.95 | $1.85 | 3.04% |
| Vipshop Holdings Ltd | 7.06 | 1.46 | 0.53 | 2.76% | $1.47 | $4.96 | -9.18% |
| Dillard's Inc | 12.02 | 3.78 | 1.13 | 6.37% | $0.21 | $0.63 | -3.53% |
| MINISO Group Holding Ltd | 23.47 | 5.54 | 3.83 | 6.68% | $0.88 | $2.03 | 19.29% |
| Ollie's Bargain Outlet Holdings Inc | 33.60 | 4.28 | 3.10 | 2.24% | $0.06 | $0.21 | 7.79% |
| Macy's Inc | 25.18 | 1.03 | 0.18 | 0.66% | $0.29 | $2.04 | -2.68% |
| Nordstrom Inc | 15.30 | 4.04 | 0.27 | 4.75% | $0.3 | $1.31 | 4.34% |
| Savers Value Village Inc | 24.24 | 4.12 | 1.22 | 5.09% | $0.07 | $0.22 | 0.53% |
| Kohl's Corp | 6.13 | 0.40 | 0.09 | 0.58% | $0.28 | $1.57 | -8.49% |
| Groupon Inc | 15.38 | 10.55 | 0.79 | 34.72% | $0.03 | $0.1 | -9.48% |
| Average | 21.76 | 5.43 | 1.74 | 7.12% | $6.98 | $14.45 | 7.92% |
After thoroughly examining Amazon.com, the following trends can be inferred:
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The current Price to Earnings ratio of 50.18 is 2.31x higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.
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With a Price to Book ratio of 9.53, which is 1.76x 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.
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The Price to Sales ratio of 4.05, which is 2.33x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
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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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Compared to its industry, 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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With a revenue growth of 11.04%, which surpasses the industry average of 7.92%, the company is demonstrating robust sales expansion and gaining market share.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage 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.
When evaluating Amazon.com alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:
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Among its top 4 peers, Amazon.com has a stronger financial position with a lower debt-to-equity ratio of 0.52.
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This indicates that the company relies less on debt financing and maintains a more favorable balance between debt and equity, which can be viewed positively by investors.
Key Takeaways
For Amazon.com, the PE, PB, and PS ratios are all high compared to its peers in the Broadline Retail industry, indicating that the stock may be overvalued. The low ROE suggests that Amazon.com is not generating significant returns on shareholder equity. However, the high EBITDA, gross profit, and revenue growth show that the company is performing well in terms of operational and financial metrics compared to its industry peers.
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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