Benzingaยท2025-09-19 15:00Core Insights - The article provides a comprehensive analysis of Amazon.com and its position within the Broadline Retail industry, focusing on financial metrics, market position, and growth prospects to inform investors [1] Company Overview - Amazon.com 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 primary markets [2] Financial Metrics Comparison - Amazon's Price to Earnings (P/E) ratio is 35.25, which is 0.79x lower than the industry average, indicating potential for growth at a reasonable price [5] - The Price to Book (P/B) ratio of 7.39 exceeds the industry average by 1.09x, suggesting the stock may be trading at a premium relative to its book value [5] - Amazon's Price to Sales (P/S) ratio of 3.72 is 1.6x the industry average, which may indicate overvaluation based on 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 Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is $36.6 billion, which is 5.91x above the industry average, demonstrating strong profitability [5] - The gross profit of $86.89 billion is 5.23x above the industry average, indicating robust earnings from core operations [5] - Revenue growth of 13.33% surpasses the industry average of 10.76%, showcasing exceptional sales performance [5] Debt-to-Equity Ratio Analysis - Amazon's debt-to-equity (D/E) ratio is 0.4, indicating a stronger financial position compared to its top 4 peers, as it relies less on debt financing [11] - The low P/E ratio suggests Amazon may be undervalued relative to its peers, while the high P/B and P/S ratios indicate that the market values its assets and sales highly [9]