Taking everything into account, AMZN scores 6 out of 10 in our fundamental rating. AMZN was compared to 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 is valued quite expensively, but it does show have an excellent growth rating.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

AMZN had positive earnings in the past year.
AMZN had a positive operating cash flow in the past year.
AMZN had positive earnings in 4 of the past 5 years.
Each year in the past 5 years AMZN had a positive operating cash flow.

1.2 Ratios

AMZN's Return On Assets of 10.51% is amongst the best of the industry. AMZN outperforms 90.00% of its industry peers.
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.
The Return On Invested Capital of AMZN (11.98%) is better than 80.00% of its industry peers.
AMZN had an Average Return On Invested Capital over the past 3 years of 8.31%. This 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

AMZN has a Profit Margin of 11.06%. This is amongst the best in the industry. AMZN outperforms 86.67% of its industry peers.
AMZN's Profit Margin has improved in the last couple of years.
The Operating Margin of AMZN (11.02%) is better than 80.00% of its industry peers.
AMZN's Operating Margin has improved in the last couple of years.
AMZN's Gross Margin of 50.05% is fine compared to the rest 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

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

2.2 Solvency

An Altman-Z score of 6.09 indicates that AMZN is not in any danger for bankruptcy at the moment.
AMZN's Altman-Z score of 6.09 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 (4.81) which is in line with its industry peers.
A Debt/Equity ratio of 0.14 indicates that AMZN is not too dependend on debt financing.
The Debt to Equity ratio of AMZN (0.14) is better than 76.67% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.14
Debt/FCF	4.81
Altman-Z	6.09

ROIC/WACC1.36

WACC8.82%

2.3 Liquidity

A Current Ratio of 1.01 indicates that AMZN should not have too much problems paying 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.
A Quick Ratio of 0.80 indicates that AMZN may have some problems paying its short term obligations.
AMZN's Quick ratio of 0.80 is on the low side compared to the rest of the industry. AMZN is outperformed by 76.67% of its industry peers.

		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

AMZN 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, AMZN 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.
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

Based on estimates for the next years, AMZN will show a very strong growth in Earnings Per Share. The EPS will grow by 20.82% on average per year.
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.
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

With a Price/Earnings ratio of 34.32, AMZN can be considered very expensive at the moment.
AMZN's Price/Earnings is on the same level as the industry average.
AMZN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.60.
With a Price/Forward Earnings ratio of 29.98, AMZN can be considered very expensive at the moment.
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 25.83.

		Industry Rank	Sector Rank
PE	34.32
Fwd PE	29.98

4.2 Price Multiples

AMZN's Enterprise Value to EBITDA ratio is in line with 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	246.01
EV/EBITDA	18.3

4.3 Compensation for Growth

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