AMAZON.COM INC (1AMZN.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AMZN - US0231351067 - Common Stock
201.95 EUR
+0.35 (+0.17%)
We assign a fundamental rating of 6 out of 10 to 1AMZN. 1AMZN was compared to 13 industry peers in the Broadline Retail industry. While 1AMZN has a great profitability rating, there are some minor concerns on its financial health. 1AMZN is valued quite expensive, but it does show an excellent growth. This makes 1AMZN very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- 1AMZN had positive earnings in the past year.
- In the past year 1AMZN had a positive cash flow from operations.
- Of the past 5 years 1AMZN 4 years were profitable.
- Each year in the past 5 years 1AMZN had a positive operating cash flow.
1.2 Ratios
- 1AMZN has a better Return On Assets (10.51%) than 69.23% of its industry peers.
- The Return On Equity of 1AMZN (20.69%) is better than 69.23% of its industry peers.
- The Return On Invested Capital of 1AMZN (11.98%) is better than 69.23% of its industry peers.
- 1AMZN had an Average Return On Invested Capital over the past 3 years of 8.31%. This is in line with the industry average of 8.68%.
- The 3 year average ROIC (8.31%) for 1AMZN is below the current ROIC(11.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.51% | ||
| ROE | 20.69% | ||
| ROIC | 11.98% |
ROA(3y)4.89%
ROA(5y)5.85%
ROE(3y)11.31%
ROE(5y)16.18%
ROIC(3y)8.31%
ROIC(5y)8.44%
1.3 Margins
- With a decent Profit Margin value of 11.06%, 1AMZN is doing good in the industry, outperforming 69.23% of the companies in the same industry.
- 1AMZN's Profit Margin has improved in the last couple of years.
- 1AMZN has a Operating Margin of 11.02%. This is in the better half of the industry: 1AMZN outperforms 69.23% of its industry peers.
- In the last couple of years the Operating Margin of 1AMZN has grown nicely.
- Looking at the Gross Margin, with a value of 50.05%, 1AMZN is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
- 1AMZN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.02% | ||
| PM (TTM) | 11.06% | ||
| GM | 50.05% |
OM growth 3Y26.58%
OM growth 5Y15.69%
PM growth 3Y9.36%
PM growth 5Y17.59%
GM growth 3Y5.14%
GM growth 5Y3.57%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1AMZN is still creating some value.
- The number of shares outstanding for 1AMZN has been increased compared to 1 year ago.
- The number of shares outstanding for 1AMZN has been increased compared to 5 years ago.
- Compared to 1 year ago, 1AMZN has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.05 indicates that 1AMZN is not in any danger for bankruptcy at the moment.
- 1AMZN has a better Altman-Z score (6.05) than 92.31% of its industry peers.
- 1AMZN has a debt to FCF ratio of 4.81. This is a neutral value as 1AMZN would need 4.81 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.81, 1AMZN is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
- 1AMZN has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
- 1AMZN has a Debt to Equity ratio of 0.14. This is amongst the best in the industry. 1AMZN outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 4.81 | ||
| Altman-Z | 6.05 |
ROIC/WACC1.36
WACC8.79%
2.3 Liquidity
- A Current Ratio of 1.01 indicates that 1AMZN should not have too much problems paying its short term obligations.
- The Current ratio of 1AMZN (1.01) is worse than 61.54% of its industry peers.
- A Quick Ratio of 0.80 indicates that 1AMZN may have some problems paying its short term obligations.
- The Quick ratio of 1AMZN (0.80) is worse than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- 1AMZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.61%, which is quite impressive.
- The Earnings Per Share has been growing by 36.89% on average over the past years. This is a very strong growth
- 1AMZN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.48%.
- The Revenue has been growing by 17.86% on average over the past years. This is quite good.
EPS 1Y (TTM)51.61%
EPS 3Y37.19%
EPS 5Y36.89%
EPS Q2Q%36.36%
Revenue 1Y (TTM)11.48%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%13.4%
3.2 Future
- 1AMZN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.82% yearly.
- Based on estimates for the next years, 1AMZN will show a quite strong growth in Revenue. The Revenue will grow by 11.20% on average per year.
EPS Next Y31.73%
EPS Next 2Y21.07%
EPS Next 3Y21.22%
EPS Next 5Y20.82%
Revenue Next Year12.08%
Revenue Next 2Y11.7%
Revenue Next 3Y11.5%
Revenue Next 5Y11.2%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- 1AMZN is valuated quite expensively with a Price/Earnings ratio of 34.00.
- 1AMZN's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, 1AMZN is valued at the same level.
- The Price/Forward Earnings ratio is 29.72, which means the current valuation is very expensive for 1AMZN.
- 1AMZN's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. 1AMZN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34 | ||
| Fwd PE | 29.72 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1AMZN.
- Based on the Price/Free Cash Flow ratio, 1AMZN is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 243.88 | ||
| EV/EBITDA | 18.13 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- 1AMZN has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as 1AMZN's earnings are expected to grow with 21.22% in the coming years.
PEG (NY)1.07
PEG (5Y)0.92
EPS Next 2Y21.07%
EPS Next 3Y21.22%
5. Dividend
5.1 Amount
- No dividends for 1AMZN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
AMAZON.COM INC / 1AMZN.MI FAQ
Can you provide the ChartMill fundamental rating for AMAZON.COM INC?
ChartMill assigns a fundamental rating of 6 / 10 to 1AMZN.MI.
What is the valuation status of AMAZON.COM INC (1AMZN.MI) stock?
ChartMill assigns a valuation rating of 3 / 10 to AMAZON.COM INC (1AMZN.MI). This can be considered as Overvalued.
How profitable is AMAZON.COM INC (1AMZN.MI) stock?
AMAZON.COM INC (1AMZN.MI) has a profitability rating of 7 / 10.
What is the expected EPS growth for AMAZON.COM INC (1AMZN.MI) stock?
The Earnings per Share (EPS) of AMAZON.COM INC (1AMZN.MI) is expected to grow by 31.73% in the next year.