AMZN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 30 industry peers in the Broadline Retail industry. While AMZN has a great profitability rating, there are some minor concerns on its financial health. AMZN shows excellent growth, but is valued quite expensive already.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year AMZN was profitable.
In the past year AMZN had a positive cash flow from operations.
AMZN had positive earnings in 4 of the past 5 years.
AMZN had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 10.51%, AMZN belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
AMZN has a Return On Equity of 20.69%. This is amongst the best in the industry. AMZN outperforms 83.33% of its industry peers.
AMZN has a Return On Invested Capital of 11.98%. This is in the better half of the industry: AMZN outperforms 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AMZN is in line with the industry average of 9.28%.
The last Return On Invested Capital (11.98%) for AMZN 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

Looking at the Profit Margin, with a value of 11.06%, AMZN belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
In the last couple of years the Profit Margin of AMZN has grown nicely.
The Operating Margin of AMZN (11.02%) is better than 80.00% of its industry peers.
In the last couple of years the Operating Margin of AMZN has grown nicely.
AMZN has a Gross Margin of 50.05%. This is in the better half of the industry: AMZN outperforms 70.00% of its industry peers.
AMZN'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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

AMZN 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 AMZN has been increased compared to 1 year ago.
The number of shares outstanding for AMZN has been increased compared to 5 years ago.
AMZN has a better debt/assets ratio than last year.

2.2 Solvency

AMZN has an Altman-Z score of 6.07. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
AMZN's Altman-Z score of 6.07 is amongst the best of the industry. AMZN outperforms 90.00% of its industry peers.
The Debt to FCF ratio of AMZN is 4.81, which is a neutral value as it means it would take AMZN, 4.81 years of fcf income to pay off all of its debts.
AMZN has a Debt to FCF ratio of 4.81. This is comparable to the rest of the industry: AMZN outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that AMZN is not too dependend on debt financing.
AMZN has a Debt to Equity ratio of 0.14. This is in the better half of the industry: AMZN outperforms 76.67% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.14
Debt/FCF	4.81
Altman-Z	6.07

ROIC/WACC1.36

WACC8.83%

2.3 Liquidity

AMZN has a Current Ratio of 1.01. This is a normal value and indicates that AMZN is financially healthy and should not expect problems in meeting its short term obligations.
AMZN's Current ratio of 1.01 is on the low side compared to the rest of the industry. AMZN is outperformed by 83.33% of its industry peers.
AMZN has a Quick Ratio of 1.01. This is a bad value and indicates that AMZN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.80, AMZN is not doing good in the industry: 76.67% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.01
Quick Ratio	0.8

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 51.61% over the past year.
The Earnings Per Share has been growing by 36.89% on average over the past years. This is a very strong growth
AMZN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.48%.
AMZN 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

The Earnings Per Share is expected to grow by 20.82% on average over the next years. This is a very strong growth
AMZN 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.
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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 33.80, AMZN can be considered very expensive at the moment.
AMZN's Price/Earnings ratio is in line with the industry average.
AMZN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 29.52 indicates a quite expensive valuation of AMZN.
The rest of the industry has a similar Price/Forward Earnings ratio as AMZN.
AMZN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	33.8
Fwd PE	29.52

4.2 Price Multiples

AMZN's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, AMZN is valued a bit more expensive than 63.33% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	242.25
EV/EBITDA	18.2

4.3 Compensation for Growth

AMZN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AMZN has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AMZN's earnings are expected to grow with 21.22% in the coming years.