Insights Into Amazon.com's Performance Versus Peers In Broadline Retail Sector - Amazon.com (NASDAQ:AMZN)

Core Insights - The article provides a comprehensive comparison of Amazon.com against its key competitors in the Broadline Retail industry, focusing on financial metrics, market position, and growth prospects to offer insights for investors [1]. Company Overview - Amazon is the leading online retailer, with retail-related revenue accounting for approximately 75% of total revenue, followed by Amazon Web Services (15%), advertising services (5% to 10%), and other segments [2]. Financial Metrics Comparison - Amazon's Price to Earnings (P/E) ratio is 34.78, which is 0.78x lower than the industry average, indicating potential undervaluation [5]. - The Price to Book (P/B) ratio of 7.29 exceeds the industry average by 1.08x, suggesting the stock may be trading at a premium relative to its book value [5]. - Amazon's Price to Sales (P/S) ratio of 3.67 is 1.61x higher than the industry average, indicating possible overvaluation in terms of sales performance [5]. - The Return on Equity (ROE) stands at 5.68%, slightly above the industry average, reflecting efficient use of equity to generate profits [5]. - Amazon's EBITDA is $36.6 billion, which is 5.91x above the industry average, indicating strong profitability and cash flow generation [5]. - The gross profit of $86.89 billion is 5.24x above the industry average, showcasing stronger profitability from core operations [5]. - Revenue growth of 13.33% surpasses the industry average of 11.18%, indicating robust sales expansion and market share gain [5]. Debt-to-Equity Ratio - Amazon's debt-to-equity (D/E) ratio is 0.4, indicating a lower reliance on debt financing compared to its peers, which suggests a more favorable balance between debt and equity [10]. - The D/E ratio is a critical metric for evaluating the capital structure and financial leverage of a company, aiding in informed decision-making [7]. Competitive Positioning - Amazon.com demonstrates superior financial performance compared to its top four peers in terms of ROE, EBITDA, gross profit, and revenue growth, reflecting strong growth potential [8].