AMAZON.COM INC (1AMZN.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AMZN - US0231351067 - Common Stock
201.6 EUR
-1.65 (-0.81%)
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 belongs to the best of the industry regarding profitability, 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 would make 1AMZN suitable for growth investing!
1. Profitability
1.1 Basic Checks
- 1AMZN had positive earnings in the past year.
- 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
- With a decent Return On Assets value of 10.51%, 1AMZN is doing good in the industry, outperforming 69.23% of the companies in the same industry.
- 1AMZN has a Return On Equity of 20.69%. This is in the better half of the industry: 1AMZN outperforms 69.23% of its industry peers.
- 1AMZN has a Return On Invested Capital of 11.98%. This is in the better half of the industry: 1AMZN outperforms 69.23% 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
- 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.
- With a decent Operating Margin value of 11.02%, 1AMZN is doing good in the industry, outperforming 69.23% of the companies in the same industry.
- 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
- 1AMZN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- 1AMZN has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for 1AMZN has been increased compared to 5 years ago.
- 1AMZN has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 6.01 indicates that 1AMZN is not in any danger for bankruptcy at the moment.
- 1AMZN has a Altman-Z score of 6.01. This is amongst the best in the industry. 1AMZN outperforms 92.31% of its industry peers.
- The Debt to FCF ratio of 1AMZN is 4.81, which is a neutral value as it means it would take 1AMZN, 4.81 years of fcf income to pay off all of its debts.
- 1AMZN has a better Debt to FCF ratio (4.81) than 69.23% of its industry peers.
- A Debt/Equity ratio of 0.14 indicates that 1AMZN is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.14, 1AMZN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 4.81 | ||
| Altman-Z | 6.01 |
ROIC/WACC1.36
WACC8.81%
2.3 Liquidity
- A Current Ratio of 1.01 indicates that 1AMZN should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.01, 1AMZN is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
- 1AMZN has a Quick Ratio of 1.01. This is a bad value and indicates that 1AMZN is not financially healthy enough and could expect problems in meeting 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%.
- Measured over the past years, 1AMZN shows a quite strong growth in Revenue. The Revenue has been growing by 17.86% on average per year.
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 33.71.
- 1AMZN's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, 1AMZN is valued a bit more expensive.
- A Price/Forward Earnings ratio of 29.44 indicates a quite expensive valuation of 1AMZN.
- 1AMZN's Price/Forward Earnings is on the same level as the industry average.
- 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
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1AMZN is on the same level as its industry peers.
- 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 | 241.56 | ||
| 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.
- 1AMZN's earnings are expected to grow with 21.22% in the coming years. This may justify a more expensive valuation.
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 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.