Inquiry Into Amazon.com's Competitor Dynamics In Broadline Retail Industry

In the dynamic and fiercely competitive business environment, conducting a thorough analysis of companies is crucial for investors and industry enthusiasts. In this article, we will perform an extensive industry comparison, evaluating Amazon.com (NASDAQ:AMZN) in relation to its major competitors in the Broadline Retail industry. By closely examining crucial financial metrics, market position, and growth prospects, we aim to offer 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	37.82	8.06	3.84	5.79%	$36.48	$78.69	8.62%
Alibaba Group Holding Ltd	16.22	2.05	2.11	1.23%	$21.8	$90.83	6.57%
PDD Holdings Inc	12.66	3.65	3.12	4.59%	$16.09	$54.73	10.21%
MercadoLibre Inc	58.82	24.22	5.42	10.56%	$0.92	$2.77	36.97%
Coupang Inc	215.29	12.52	1.78	2.53%	$0.36	$2.32	11.16%
JD.com Inc	8.14	1.48	0.31	4.6%	$14.27	$47.85	15.78%
eBay Inc	19.82	7.68	3.92	9.95%	$0.77	$1.86	1.13%
Vipshop Holdings Ltd	8.33	1.48	0.57	4.85%	$2.45	$6.08	-4.98%
Ollie's Bargain Outlet Holdings Inc	40.54	4.67	3.48	2.78%	$0.07	$0.24	13.35%
Dillard's Inc	13.79	4.19	1.21	8.97%	$0.26	$0.69	-1.64%
MINISO Group Holding Ltd	17.22	3.90	2.38	3.98%	$0.65	$1.96	18.89%
Macy's Inc	6.41	0.77	0.16	0.84%	$0.31	$2.0	-4.14%
Savers Value Village Inc	73.36	3.85	1.10	-1.13%	$0.03	$0.2	4.51%
Kohl's Corp	12.50	0.40	0.09	-0.4%	$0.23	$1.4	-4.41%
Hour Loop Inc	183	11.06	0.46	11.93%	$0.0	$0.01	4.68%
Average	49.01	5.85	1.87	4.66%	$4.16	$15.21	7.72%

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

• With a Price to Earnings ratio of 37.82, which is 0.77x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.

• The elevated Price to Book ratio of 8.06 relative to the industry average by 1.38x suggests company might be overvalued based on its book value.

• With a relatively high Price to Sales ratio of 3.84, which is 2.05x the industry average, the stock might be considered overvalued based on sales performance.

• The Return on Equity (ROE) of 5.79% is 1.13% above the industry average, highlighting efficient use of equity to generate profits.

• The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $36.48 Billion, which is 8.77x above the industry average, indicating stronger profitability and robust cash flow generation.

• The company has higher gross profit of $78.69 Billion, which indicates 5.17x above the industry average, indicating stronger profitability and higher earnings from its core operations.

• The company is experiencing remarkable revenue growth, with a rate of 8.62%, outperforming the industry average of 7.72%.

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 comparing Amazon.com with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:

• In terms of the debt-to-equity ratio, Amazon.com has a lower level of debt compared to its top 4 peers, indicating a stronger financial position.

• This implies that the company relies less on debt financing and has a more favorable balance between debt and equity with a lower debt-to-equity ratio of 0.44.

Key Takeaways

For Amazon.com, the PE ratio is low compared to its peers in the Broadline Retail industry, indicating potential undervaluation. The high PB and PS ratios suggest that the market values Amazon.com's assets and sales highly. Amazon.com's high ROE, EBITDA, gross profit, and revenue growth outperform its industry peers, reflecting strong financial performance and growth potential.

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