AMAZON.COM INC (AMZ.DE) Stock Fundamental Analysis

Europe • Frankfurt Stock Exchange • FRA:AMZ • US0231351067

202.65 EUR

+3.21 (+1.61%)

Last: Jan 30, 2026, 07:00 PM

Fundamental Rating

We assign a fundamental rating of 5 out of 10 to AMZ. AMZ was compared to 13 industry peers in the Broadline Retail industry. AMZ scores excellent on profitability, but there are some minor concerns on its financial health. AMZ shows excellent growth, but is valued quite expensive already. This makes AMZ very considerable for growth investing!

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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.
AMZ had positive earnings in 4 of the past 5 years.
In the past 5 years AMZ always reported a positive cash flow from operatings.

1.2 Ratios

AMZ's Return On Assets of 10.51% is fine compared to the rest of the industry. AMZ outperforms 61.54% of its industry peers.
Looking at the Return On Equity, with a value of 20.69%, AMZ is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
AMZ has a better Return On Invested Capital (11.98%) than 61.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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

AMZ's Profit Margin of 11.06% is fine compared to the rest of the industry. AMZ outperforms 61.54% of its industry peers.
In the last couple of years the Profit Margin of AMZ has grown nicely.
AMZ's Operating Margin of 11.02% is fine compared to the rest of the industry. AMZ outperforms 61.54% of its industry peers.
In the last couple of years the Operating Margin of AMZ has grown nicely.
The Gross Margin of AMZ (50.05%) is better than 69.23% of its industry peers.
AMZ'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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

AMZ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AMZ has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AMZ has been increased compared to 5 years ago.
Compared to 1 year ago, AMZ has an improved debt to assets ratio.

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 has a better Altman-Z score (6.01) than 100.00% of its industry peers.
The Debt to FCF ratio of AMZ is 4.81, which is a neutral value as it means it would take AMZ, 4.81 years of fcf income to pay off all of its debts.
AMZ has a Debt to FCF ratio of 4.81. This is in the better half 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.
Looking at the Debt to Equity ratio, with a value of 0.14, AMZ belongs to the top of the industry, outperforming 92.31% 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

WACC8.79%

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.
Looking at the Current ratio, with a value of 1.01, AMZ is doing worse than 69.23% of the companies in the same industry.
A Quick Ratio of 0.80 indicates that AMZ may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.80, AMZ is doing worse than 69.23% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.01
Quick Ratio	0.8

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WACC

Debt/Equity

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Altman-Z score

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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.
Measured over the past years, AMZ shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.89% on average per year.
The Revenue has grown by 11.48% in the past year. This is quite good.
AMZ 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

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.
Based on estimates for the next years, AMZ 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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 34.23 indicates a quite expensive valuation of AMZ.
Compared to the rest of the industry, the Price/Earnings ratio of AMZ indicates a slightly more expensive valuation: AMZ is more expensive than 61.54% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AMZ to the average of the S&P500 Index (28.30), we can say AMZ is valued slightly more expensively.
With a Price/Forward Earnings ratio of 29.92, AMZ can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMZ is on the same level as its industry peers.
AMZ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	34.23
Fwd PE	29.92

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	245.52
EV/EBITDA	17.96

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.
AMZ's earnings are expected to grow with 21.22% in the coming years. This may justify a more expensive valuation.