AMAZON.COM INC (AMZ.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AMZ - US0231351067 - Common Stock
203.4 EUR
+3.54 (+1.77%)
Overall AMZ gets a fundamental rating of 5 out of 10. We evaluated AMZ against 13 industry peers in the Broadline Retail industry. While AMZ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AMZ shows excellent growth, but is valued quite expensive already. With these ratings, AMZ could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
- In the past year AMZ was profitable.
- In the past year AMZ had a positive cash flow from operations.
- Of the past 5 years AMZ 4 years were profitable.
- In the past 5 years AMZ always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 10.51%, AMZ is doing good in the industry, outperforming 61.54% of the companies in the same industry.
- AMZ has a Return On Equity (20.69%) which is in line with its industry peers.
- The Return On Invested Capital of AMZ (11.98%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for AMZ is in line with the industry average of 8.68%.
- The last Return On Invested Capital (11.98%) for AMZ 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%, AMZ is doing good in the industry, outperforming 61.54% of the companies in the same industry.
- AMZ's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 11.02%, AMZ is in line with its industry, outperforming 53.85% of the companies in the same industry.
- In the last couple of years the Operating Margin of AMZ has grown nicely.
- With a decent Gross Margin value of 50.05%, AMZ is doing good in the industry, outperforming 69.23% of the companies in the same industry.
- In the last couple of years the Gross Margin of AMZ 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AMZ is still creating some value.
- AMZ has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, AMZ has more shares outstanding
- AMZ has a better debt/assets ratio than last year.
2.2 Solvency
- AMZ has an Altman-Z score of 6.01. This indicates that AMZ is financially healthy and has little risk of bankruptcy at the moment.
- AMZ's Altman-Z score of 6.01 is amongst the best of the industry. AMZ outperforms 100.00% of its industry peers.
- AMZ has a debt to FCF ratio of 4.81. This is a neutral value as AMZ would need 4.81 years to pay back of all of its debts.
- AMZ's Debt to FCF ratio of 4.81 is fine compared to the rest of the industry. AMZ outperforms 61.54% of its industry peers.
- A Debt/Equity ratio of 0.14 indicates that AMZ is not too dependend on debt financing.
- AMZ has a better Debt to Equity ratio (0.14) than 92.31% 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
- AMZ has a Current Ratio of 1.01. This is a normal value and indicates that AMZ is financially healthy and should not expect problems in meeting its short term obligations.
- AMZ has a Current ratio of 1.01. This is in the lower half of the industry: AMZ underperforms 69.23% of its industry peers.
- A Quick Ratio of 0.80 indicates that AMZ may have some problems paying its short term obligations.
- With a Quick ratio value of 0.80, AMZ is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- AMZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.61%, which is quite impressive.
- AMZ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.89% yearly.
- AMZ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.48%.
- Measured over the past years, AMZ 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
- Based on estimates for the next years, AMZ will show a very strong growth in Earnings Per Share. The EPS will grow by 20.82% on average per year.
- AMZ is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.20% yearly.
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
- The Price/Earnings ratio is 33.73, which means the current valuation is very expensive for AMZ.
- 61.54% of the companies in the same industry are cheaper than AMZ, based on the Price/Earnings ratio.
- AMZ's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 29.47, the valuation of AMZ can be described as expensive.
- AMZ's Price/Forward Earnings is on the same level as the industry average.
- AMZ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.73 | ||
| Fwd PE | 29.47 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMZ is on the same level as its industry peers.
- 69.23% of the companies in the same industry are cheaper than AMZ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 241.78 | ||
| EV/EBITDA | 17.97 |
4.3 Compensation for Growth
- AMZ's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- AMZ has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as AMZ'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 AMZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
AMAZON.COM INC / AMZ.DE FAQ
What is the ChartMill fundamental rating of AMAZON.COM INC (AMZ.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to AMZ.DE.
What is the valuation status for AMZ stock?
ChartMill assigns a valuation rating of 2 / 10 to AMAZON.COM INC (AMZ.DE). This can be considered as Overvalued.
Can you provide the profitability details for AMAZON.COM INC?
AMAZON.COM INC (AMZ.DE) has a profitability rating of 7 / 10.
What are the PE and PB ratios of AMAZON.COM INC (AMZ.DE) stock?
The Price/Earnings (PE) ratio for AMAZON.COM INC (AMZ.DE) is 33.73 and the Price/Book (PB) ratio is 6.91.