Comparative Study: Amazon.com And Industry Competitors In Broadline Retail Industry - Amazon.com (NASDAQ:AMZN)

Core Insights - The article provides a comprehensive analysis of Amazon.com in comparison to its key competitors in the Broadline Retail industry, focusing on financial metrics, market position, and growth prospects [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 leading markets [2] Financial Metrics Comparison - Amazon's Price to Earnings (P/E) ratio is 34.33, which is 0.8x lower than the industry average, indicating potential undervaluation [5] - The Price to Book (P/B) ratio is 7.2, 1.12x higher than the industry average, suggesting overvaluation in terms of book value [5] - Amazon's Price to Sales (P/S) ratio is 3.62, surpassing the industry average by 1.59x, indicating potential overvaluation in sales performance [5] - The Return on Equity (ROE) stands at 5.68%, which is 0.18% above the industry average, reflecting efficient equity use and profitability [5] - Amazon's EBITDA is $36.6 billion, which is 5.91x above the industry average, demonstrating strong profitability and cash flow generation [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% is notably higher than the industry average of 10.76%, showcasing exceptional sales performance [5] Debt-to-Equity Ratio Insights - Amazon's debt-to-equity (D/E) ratio is 0.4, indicating a favorable balance between debt and equity compared to its top 4 peers, which is perceived positively by investors [10] - The D/E ratio is a critical metric for evaluating financial health and risk profile within the industry [7] Summary of Competitive Position - Overall, Amazon.com appears well-positioned in the Broadline Retail sector based on its valuation metrics, with strong financial performance relative to industry competitors [8]