AMAZON.COM INC (AMZN)
US0231351067 - Common Stock
We assign a fundamental rating of 6 out of 10 to AMZN. AMZN was compared to 33 industry peers in the Broadline Retail industry. While AMZN has a great profitability rating, there are some minor concerns on its financial health. AMZN is valued quite expensively, but it does show have an excellent growth rating. These ratings could make AMZN a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
AMZN had positive earnings in the past year.
In the past year AMZN had a positive cash flow from operations.
Of the past 5 years AMZN 4 years were profitable.
Each year in the past 5 years AMZN had a positive operating cash flow.
1.2 Ratios
AMZN has a Return On Assets of 7.10%. This is in the better half of the industry: AMZN outperforms 72.73% of its industry peers.
AMZN's Return On Equity of 17.39% is fine compared to the rest of the industry. AMZN outperforms 72.73% of its industry peers.
AMZN has a better Return On Invested Capital (10.16%) than 75.76% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AMZN is significantly below the industry average of 11.44%.
The 3 year average ROIC (6.24%) for AMZN is below the current ROIC(10.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.1% | ||
| ROE | 17.39% | ||
| ROIC | 10.16% |
ROA(3y)4.37%
ROA(5y)4.98%
ROE(3y)12.45%
ROE(5y)15.77%
ROIC(3y)6.24%
ROIC(5y)7.36%
1.3 Margins
AMZN has a better Profit Margin (6.38%) than 72.73% of its industry peers.
AMZN's Profit Margin has improved in the last couple of years.
The Operating Margin of AMZN (8.02%) is better than 69.70% of its industry peers.
In the last couple of years the Operating Margin of AMZN has grown nicely.
Looking at the Gross Margin, with a value of 47.59%, AMZN is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
In the last couple of years the Gross Margin of AMZN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.02% | ||
| PM (TTM) | 6.38% | ||
| GM | 47.59% |
OM growth 3Y2.68%
OM growth 5Y3.78%
PM growth 3Y-1.42%
PM growth 5Y4.12%
GM growth 3Y5.89%
GM growth 5Y3.14%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AMZN is still creating some value.
The number of shares outstanding for AMZN has been increased compared to 1 year ago.
The number of shares outstanding for AMZN has been increased compared to 5 years ago.
The debt/assets ratio for AMZN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.50 indicates that AMZN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.50, AMZN is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
AMZN has a debt to FCF ratio of 1.81. This is a very positive value and a sign of high solvency as it would only need 1.81 years to pay back of all of its debts.
The Debt to FCF ratio of AMZN (1.81) is better than 69.70% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that AMZN is not too dependend on debt financing.
AMZN has a Debt to Equity ratio (0.34) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.81 | ||
| Altman-Z | 5.5 |
ROIC/WACC1
WACC10.12%
2.3 Liquidity
A Current Ratio of 1.07 indicates that AMZN should not have too much problems paying its short term obligations.
AMZN has a worse Current ratio (1.07) than 81.82% of its industry peers.
A Quick Ratio of 0.87 indicates that AMZN may have some problems paying its short term obligations.
AMZN has a Quick ratio of 0.87. This is in the lower half of the industry: AMZN underperforms 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
AMZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 308.79%, which is quite impressive.
AMZN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.57% yearly.
Looking at the last year, AMZN shows a quite strong growth in Revenue. The Revenue has grown by 12.54% in the last year.
The Revenue has been growing by 19.80% on average over the past years. This is quite good.
EPS 1Y (TTM)308.79%
EPS 3Y11.56%
EPS 5Y23.57%
EPS growth Q2Q264.52%
Revenue 1Y (TTM)12.54%
Revenue growth 3Y14.19%
Revenue growth 5Y19.8%
Revenue growth Q2Q12.53%
3.2 Future
AMZN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.67% yearly.
AMZN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.91% yearly.
EPS Next Y45.19%
EPS Next 2Y36.46%
EPS Next 3Y33.53%
EPS Next 5Y30.67%
Revenue Next Year12.33%
Revenue Next 2Y11.89%
Revenue Next 3Y11.41%
Revenue Next 5Y10.91%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 50.54, AMZN can be considered very expensive at the moment.
AMZN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.05, AMZN is valued quite expensively.
Based on the Price/Forward Earnings ratio of 34.81, the valuation of AMZN can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMZN is on the same level as its industry peers.
AMZN's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.54 | ||
| Fwd PE | 34.81 |
4.2 Price Multiples
AMZN's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMZN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.71 | ||
| EV/EBITDA | 20.14 |
4.3 Compensation for Growth
AMZN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AMZN has a very decent profitability rating, which may justify a higher PE ratio.
AMZN's earnings are expected to grow with 33.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.12
PEG (5Y)2.14
EPS Next 2Y36.46%
EPS Next 3Y33.53%
5. Dividend
5.1 Amount
No dividends for AMZN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AMAZON.COM INC
NASDAQ:AMZN (5/8/2024, 9:41:27 PM)
After market: 187.95 -0.05 (-0.03%)188
-0.76 (-0.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
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Market Cap1952.00B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.54 | ||
| Fwd PE | 34.81 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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FCF(TTM)
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OCF(TTM)
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SpS
BVpS
TBVpS
PEG (NY)1.12
PEG (5Y)2.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.1% | ||
| ROE | 17.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.02% | ||
| PM (TTM) | 6.38% | ||
| GM | 47.59% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)308.79%
EPS 3Y11.56%
EPS 5Y
EPS growth Q2Q
EPS Next Y45.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.54%
Revenue growth 3Y14.19%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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