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 segments contribute 25% to 30% of Amazon's non-AWS sales, with Germany, the United Kingdom, and Japan being the primary markets [2] Financial Metrics Comparison - Amazon's Price to Earnings (P/E) ratio is 35.29, which is significantly below the industry average by 0.8x, suggesting potential undervaluation [5] - The Price to Book (P/B) ratio of 7.4 is 1.1x above the industry average, indicating possible overvaluation based on book value [5] - Amazon's Price to Sales (P/S) ratio of 3.72 is 1.6x the industry average, which may also suggest overvaluation based on sales performance [5] - The Return on Equity (ROE) stands at 5.68%, slightly above the industry average, indicating 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, reflecting stronger profitability [5] - The gross profit of $86.89 billion indicates a performance that is 5.23x above the industry average, showcasing higher earnings from core operations [5] - Revenue growth of 13.33% surpasses the industry average of 10.76%, demonstrating 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 is viewed positively by investors [10] - The analysis of Amazon's D/E ratio in relation to its top 4 peers highlights its stronger financial position within the Broadline Retail industry [8]
Exploring The Competitive Space: Amazon.com Versus Industry Peers In Broadline Retail - Amazon.com (NASDAQ:AMZN)