Performance Comparison: Amazon.com And Competitors 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	34.85	7.14	3.24	7.34%	$38.55	$37.37	10.49%
Alibaba Group Holding Ltd	19.28	2.28	2.39	5.01%	$59.0	$117.63	7.61%
PDD Holdings Inc	11.50	3.87	3.28	9.28%	$29.18	$59.65	11.33%
MercadoLibre Inc	54.34	23.86	5	15.3%	$0.96	$2.75	37.42%
JD.com Inc	11.24	1.83	0.40	4.21%	$15.92	$45.04	33.26%
Coupang Inc	279.50	9.84	1.35	3.76%	$0.44	$2.49	21.4%
eBay Inc	17	6.07	3.27	12.84%	$0.76	$1.86	0.66%
Vipshop Holdings Ltd	8.16	1.51	0.58	6.31%	$1.47	$4.96	60.69%
Ollie's Bargain Outlet Holdings Inc	35.06	4.09	3.08	4.14%	$0.1	$0.27	2.79%
MINISO Group Holding Ltd	16.05	4.03	2.47	8.12%	$0.88	$2.03	4.2%
Dillard's Inc	9.75	3.17	0.88	11.41%	$0.21	$0.63	41.38%
Nordstrom Inc	14.06	3.58	0.28	15.61%	$0.44	$1.69	-2.17%
Macy's Inc	6.19	0.78	0.16	7.86%	$0.68	$3.02	-4.39%
Savers Value Village Inc	41.18	2.63	0.76	-0.44%	$0.04	$0.22	5.02%
Kohl's Corp	8.64	0.25	0.06	1.26%	$0.31	$1.92	-9.39%
Hour Loop Inc	31.40	8.25	0.38	7.3%	$0.0	$0.02	6.6%
Average	37.56	5.07	1.62	7.46%	$7.36	$16.28	14.43%

By closely examining Amazon.com, we can identify the following trends:

At 34.85, the stock's Price to Earnings ratio is 0.93x less than the industry average, suggesting favorable growth potential.
The elevated Price to Book ratio of 7.14 relative to the industry average by 1.41x suggests company might be overvalued based on its book value.
The stock's relatively high Price to Sales ratio of 3.24, surpassing the industry average by 2.0x, may indicate an aspect of overvaluation in terms of sales performance.
The Return on Equity (ROE) of 7.34% is 0.12% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.
Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $38.55 Billion, which is 5.24x above the industry average, indicating stronger profitability and robust cash flow generation.
With higher gross profit of $37.37 Billion, which indicates 2.3x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.
With a revenue growth of 10.49%, which is much lower than the industry average of 14.43%, the company is experiencing a notable slowdown in sales expansion.

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.

By considering the Debt-to-Equity ratio, Amazon.com can be compared to its top 4 peers, leading to 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 0.46.

Key Takeaways

For Amazon.com in the Broadline Retail industry, the PE ratio is low compared to peers, indicating potential undervaluation. The high PB and PS ratios suggest a premium valuation based on book value and sales. In terms of profitability, the low ROE reflects lower returns on equity, while high EBITDA and gross profit signify strong operational performance. The low revenue growth rate implies slower expansion compared to industry peers.

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

AMZNAmazon.com Inc

$262.83-1.64%

Overview

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