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

In today's rapidly changing and fiercely competitive business landscape, it is vital for investors and industry enthusiasts to carefully evaluate companies. In this article, we will perform a comprehensive industry comparison, evaluating Amazon.com (NASDAQ:AMZN) against its key competitors in the Broadline Retail industry. By analyzing important 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 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	40.30	8.26	3.75	7.34%	$38.55	$37.37	10.49%
Alibaba Group Holding Ltd	19.87	2.35	2.46	4.64%	$54.02	$92.47	5.21%
PDD Holdings Inc	12.32	4.52	3.58	9.38%	$29.18	$59.65	44.33%
MercadoLibre Inc	74.87	26.74	5.85	10.37%	$0.72	$2.44	35.27%
JD.com Inc	13.32	1.90	0.42	5.22%	$15.92	$45.04	5.12%
Coupang Inc	44.17	10.79	1.56	1.74%	$0.28	$2.27	27.2%
eBay Inc	17.50	6.14	3.45	11.59%	$0.95	$1.85	3.04%
Dillard's Inc	12.99	4.08	1.22	6.37%	$0.21	$0.63	-3.53%
Vipshop Holdings Ltd	6.96	1.44	0.52	2.76%	$1.47	$4.96	-9.18%
MINISO Group Holding Ltd	22.96	5.42	3.75	6.68%	$0.88	$2.03	19.29%
Ollie's Bargain Outlet Holdings Inc	30.51	3.88	2.81	2.24%	$0.06	$0.21	7.79%
Macy's Inc	25.87	1.06	0.19	0.66%	$0.29	$2.04	-2.68%
Nordstrom Inc	15.41	4.07	0.27	4.75%	$0.3	$1.31	4.34%
Savers Value Village Inc	24.48	4.16	1.24	5.09%	$0.07	$0.22	0.53%
Kohl's Corp	5.41	0.35	0.08	0.58%	$0.28	$1.57	-8.49%
Groupon Inc	18.81	12.91	0.97	34.72%	$0.03	$0.1	-9.48%
Hour Loop Inc	38.20	10.04	0.47	7.3%	$0.0	$0.02	6.6%
Average	23.98	6.24	1.8	7.13%	$6.54	$13.55	7.83%

By conducting a comprehensive analysis of Amazon.com, the following trends become evident:

At 40.3, the stock's Price to Earnings ratio significantly exceeds the industry average by 1.68x, suggesting a premium valuation relative to industry peers.
With a Price to Book ratio of 8.26, which is 1.32x 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.
The Price to Sales ratio of 3.75, which is 2.08x 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 7.34%, which is 0.21% 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 $38.55 Billion, which is 5.89x above the industry average, indicating stronger profitability and robust cash flow generation.
The gross profit of $37.37 Billion is 2.76x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
With a revenue growth of 10.49%, which surpasses the industry average of 7.83%, the company is demonstrating robust sales expansion and gaining market share.

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 terms of the Debt-to-Equity ratio, Amazon.com stands in comparison with its top 4 peers, leading to the following comparisons:

Compared to its top 4 peers, Amazon.com has a stronger financial position indicated by its lower debt-to-equity ratio of 0.46.
This suggests that the company relies less on debt financing and has a more favorable balance between debt and equity, which can be seen as a positive attribute 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 based on these metrics. On the other hand, Amazon.com's high ROE, EBITDA, gross profit, and revenue growth suggest strong operational performance and growth potential relative to industry competitors.

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

AMZNAmazon.com Inc

$264.19-0.31%

Overview

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