AMAZON.COM INC (1AMZN.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AMZN - US0231351067 - Common Stock
203.25 EUR
+3.2 (+1.6%)
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 shows excellent growth, but is valued quite expensive already. These ratings would make 1AMZN suitable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year 1AMZN was profitable.
- In the past year 1AMZN had a positive cash flow from operations.
- 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
- Looking at the Return On Assets, with a value of 10.51%, 1AMZN is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 20.69%, 1AMZN is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
- The Return On Invested Capital of 1AMZN (11.98%) is better than 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 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
- 1AMZN has a better Profit Margin (11.06%) 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 69.23% of its industry peers.
- 1AMZN's Operating Margin has improved in the last couple of years.
- 1AMZN has a Gross Margin of 50.05%. This is in the better half of the industry: 1AMZN outperforms 76.92% of its industry peers.
- 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.
- 1AMZN has more shares outstanding than it did 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.
- With an excellent Altman-Z score value of 6.01, 1AMZN belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of 1AMZN (4.81) is better than 69.23% of its industry peers.
- 1AMZN has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
- 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
WACC8.82%
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.
- 1AMZN's Current ratio of 1.01 is on the low side compared to the rest of the industry. 1AMZN is outperformed by 61.54% of its industry peers.
- 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.
- 1AMZN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.89% yearly.
- 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.
- 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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
- With a Price/Earnings ratio of 33.71, 1AMZN can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of 1AMZN is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.21. 1AMZN is valued slightly more expensive when compared to this.
- 1AMZN is valuated quite expensively with a Price/Forward Earnings ratio of 29.44.
- 1AMZN's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. 1AMZN is around the same levels.
| 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.
- 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 | 241.6 | ||
| EV/EBITDA | 17.96 |
4.3 Compensation for Growth
- The 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.