AMAZON.COM INC (1AMZN.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AMZN - US0231351067 - Common Stock
203.25 EUR
+3.2 (+1.6%)
Taking everything into account, 1AMZN scores 6 out of 10 in our fundamental rating. 1AMZN was compared to 13 industry peers in the Broadline Retail industry. 1AMZN scores excellent on profitability, but there are some minor concerns on its financial health. 1AMZN is valued quite expensively, but it does show have an excellent growth rating. These ratings could make 1AMZN a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
- In the past year 1AMZN was profitable.
- 1AMZN had a positive operating cash flow in the past year.
- Of the past 5 years 1AMZN 4 years were profitable.
- In the past 5 years 1AMZN always reported a positive cash flow from operatings.
1.2 Ratios
- 1AMZN has a better Return On Assets (10.51%) than 69.23% of its industry peers.
- 1AMZN has a Return On Equity of 20.69%. This is in the better half of the industry: 1AMZN outperforms 61.54% of its industry peers.
- The Return On Invested Capital of 1AMZN (11.98%) is better than 61.54% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1AMZN is in line with the industry average of 8.68%.
- The last Return On Invested Capital (11.98%) for 1AMZN is above the 3 year average (8.31%), which is a sign of increasing profitability.
| 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
- The Profit Margin of 1AMZN (11.06%) is better than 69.23% of its industry peers.
- 1AMZN's Profit Margin has improved in the last couple of years.
- 1AMZN's Operating Margin of 11.02% is fine compared to the rest of the industry. 1AMZN outperforms 61.54% of its industry peers.
- 1AMZN's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 50.05%, 1AMZN is doing good in the industry, outperforming 76.92% of the companies in the same industry.
- In the last couple of years the Gross Margin of 1AMZN has grown nicely.
| 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
- 1AMZN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for 1AMZN has been increased compared to 1 year ago.
- 1AMZN has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, 1AMZN has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.01 indicates that 1AMZN is not in any danger for bankruptcy at the moment.
- The Altman-Z score of 1AMZN (6.01) is better 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.
- 1AMZN's Debt to FCF ratio of 4.81 is fine compared to the rest of the industry. 1AMZN outperforms 69.23% of its industry peers.
- A Debt/Equity ratio of 0.14 indicates that 1AMZN is not too dependend on debt financing.
- 1AMZN has a better Debt to Equity ratio (0.14) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 4.81 | ||
| Altman-Z | 6.01 |
ROIC/WACC1.36
WACC8.79%
2.3 Liquidity
- 1AMZN has a Current Ratio of 1.01. This is a normal value and indicates that 1AMZN is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.01, 1AMZN is doing worse than 61.54% of the companies in the same industry.
- A Quick Ratio of 0.80 indicates that 1AMZN may have some problems paying its short term obligations.
- 1AMZN's Quick ratio of 0.80 is on the low side compared to the rest of the industry. 1AMZN is outperformed by 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 51.61% over the past year.
- 1AMZN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.89% yearly.
- The Revenue has grown by 11.48% in the past year. This is quite good.
- 1AMZN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.86% yearly.
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.
- The Revenue is expected to grow by 11.20% on average over the next years. This is quite good.
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.
- 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
- The Price/Earnings ratio is 33.71, which means the current valuation is very expensive for 1AMZN.
- The rest of the industry has a similar Price/Earnings ratio as 1AMZN.
- 1AMZN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 29.44, which means the current valuation is very expensive for 1AMZN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AMZN is on the same level as its industry peers.
- 1AMZN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.71 | ||
| Fwd PE | 29.44 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1AMZN.
- 1AMZN's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1AMZN is more expensive than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 241.6 | ||
| EV/EBITDA | 17.96 |
4.3 Compensation for Growth
- 1AMZN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of 1AMZN 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)1.06
PEG (5Y)0.91
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 5 / 10 to 1AMZN.MI.
What is the valuation status of AMAZON.COM INC (1AMZN.MI) stock?
ChartMill assigns a valuation rating of 2 / 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.