Evaluating Amazon.com Against Peers In Broadline Retail Industry - 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] - International sales contribute 25% to 30% of Amazon's non-AWS revenue, with Germany, the United Kingdom, and Japan being the leading markets [2] Financial Metrics Comparison - Amazon's Price to Earnings (P/E) ratio is 35.68, which is 0.81x lower than the industry average, indicating favorable growth potential [5] - The Price to Book (P/B) ratio of 7.48 is 1.12x higher than the industry average, suggesting potential overvaluation based on book value [5] - Amazon's Price to Sales (P/S) ratio of 3.76 is 1.64x the industry average, indicating it may be overvalued based on sales performance [5] - The Return on Equity (ROE) stands at 5.68%, slightly above the industry average, reflecting efficient equity utilization [5] - Amazon's EBITDA of $36.6 billion is 5.91x above the industry average, showcasing stronger profitability and cash flow generation [5] - The gross profit of $86.89 billion is 5.24x higher than the industry average, indicating robust earnings from core operations [5] - Revenue growth for Amazon is 13.33%, exceeding the industry average of 11.18%, highlighting strong sales performance [5] Debt-to-Equity Ratio Insights - Amazon's debt-to-equity (D/E) ratio is 0.4, indicating a lower reliance on debt financing compared to its peers, which is viewed positively by investors [11] - The D/E ratio allows for a concise evaluation of financial health and risk profile in industry comparisons [8] Competitive Positioning - Amazon outperforms its industry peers in terms of ROE, EBITDA, gross profit, and revenue growth, reflecting strong financial performance and growth potential [9]