Investigating Amazon.com's Standing In Broadline Retail Industry Compared To Competitors
Portfolio Pulse from Benzinga Insights
Amazon.com (NASDAQ:AMZN) is evaluated against its competitors in the Broadline Retail industry. Amazon's P/E, P/B, and P/S ratios are above the industry average, indicating a premium valuation. However, its ROE is slightly below the industry average, suggesting potential inefficiency. Amazon's EBITDA and gross profit are significantly higher than the industry average, showing strong profitability, but its revenue growth is marginally lower. Amazon's lower debt-to-equity ratio compared to its top 4 peers suggests a stronger financial position.
November 23, 2023 | 4:00 pm
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Amazon's premium valuation is reflected in its high P/E, P/B, and P/S ratios. Strong profitability is indicated by high EBITDA and gross profit, but ROE and revenue growth are areas of concern. Its lower debt-to-equity ratio is a positive sign.
Amazon's high valuation ratios may concern investors looking for value, but its strong profitability and financial position could support the stock price. The slightly lower ROE and revenue growth may not significantly impact the stock in the short term, given the company's overall strong financial health.
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