NASDAQ:AMZN is showing decent growth, but is still valued reasonably.

Here's AMAZON.COM INC (NASDAQ:AMZN) for you, a growth stock our stock screener believes is undervalued. NASDAQ:AMZN is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

ChartMill's Evaluation of Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:AMZN boasts a 8 out of 10:

• AMZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 117.21%, which is quite impressive.
• Measured over the past years, AMZN shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.57% on average per year.
• Looking at the last year, AMZN shows a quite strong growth in Revenue. The Revenue has grown by 11.93% in the last year.
• The Revenue has been growing by 19.80% on average over the past years. This is quite good.
• Based on estimates for the next years, AMZN will show a very strong growth in Earnings Per Share. The EPS will grow by 30.16% on average per year.
• Based on estimates for the next years, AMZN will show a quite strong growth in Revenue. The Revenue will grow by 10.51% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Unpacking NASDAQ:AMZN's Valuation Rating

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:AMZN boasts a 5 out of 10:

• AMZN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 91.29.
• AMZN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 38.64% in the coming years. This may justify a more expensive valuation.

Assessing Health Metrics for NASDAQ:AMZN

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:AMZN has earned a 5 out of 10:

• AMZN has an Altman-Z score of 6.39. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of AMZN (6.39) is better than 83.87% of its industry peers.
• The Debt to FCF ratio of AMZN is 1.84, which is an excellent value as it means it would take AMZN, only 1.84 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of AMZN (1.84) is better than 70.97% of its industry peers.
• A Debt/Equity ratio of 0.28 indicates that AMZN is not too dependend on debt financing.

Profitability Insights: NASDAQ:AMZN

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:AMZN, the assigned 7 is a significant indicator of profitability:

• The Return On Assets of AMZN (8.53%) is better than 80.65% of its industry peers.
• AMZN's Return On Equity of 19.24% is fine compared to the rest of the industry. AMZN outperforms 67.74% of its industry peers.
• The Return On Invested Capital of AMZN (11.60%) is better than 74.19% of its industry peers.
• The 3 year average ROIC (6.30%) for AMZN is below the current ROIC(11.60%), indicating increased profibility in the last year.
• AMZN's Profit Margin of 8.04% is fine compared to the rest of the industry. AMZN outperforms 77.42% of its industry peers.
• In the last couple of years the Profit Margin of AMZN has grown nicely.
• Looking at the Operating Margin, with a value of 9.77%, AMZN is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
• In the last couple of years the Operating Margin of AMZN has grown nicely.
• AMZN has a Gross Margin of 48.41%. This is in the better half of the industry: AMZN outperforms 67.74% of its industry peers.
• AMZN's Gross Margin has improved in the last couple of years.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of AMZN contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.