AMAZON.COM INC (AMZN)
US0231351067 - Common Stock
We assign a fundamental rating of 6 out of 10 to AMZN. AMZN was compared to 32 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make AMZN a good candidate for growth investing.
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.
In the past 5 years AMZN always reported a positive cash flow from operatings.
1.2 Ratios
AMZN has a better Return On Assets (8.53%) than 75.00% of its industry peers.
AMZN has a better Return On Equity (19.24%) than 65.63% of its industry peers.
AMZN has a better Return On Invested Capital (11.60%) than 71.88% of its industry peers.
AMZN had an Average Return On Invested Capital over the past 3 years of 6.30%. This is significantly below the industry average of 11.71%.
The last Return On Invested Capital (11.60%) for AMZN is above the 3 year average (6.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 19.24% | ||
| ROIC | 11.6% |
ROA(3y)4.37%
ROA(5y)4.98%
ROE(3y)12.45%
ROE(5y)15.77%
ROIC(3y)6.3%
ROIC(5y)7.39%
1.3 Margins
Looking at the Profit Margin, with a value of 8.04%, AMZN is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
In the last couple of years the Profit Margin of AMZN has grown nicely.
With a decent Operating Margin value of 9.77%, AMZN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AMZN has grown nicely.
AMZN has a better Gross Margin (48.41%) than 68.75% of its industry peers.
In the last couple of years the Gross Margin of AMZN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.77% | ||
| PM (TTM) | 8.04% | ||
| GM | 48.41% |
OM growth 3Y2.68%
OM growth 5Y3.78%
PM growth 3Y-1.42%
PM growth 5Y4.12%
GM growth 3Y5.89%
GM growth 5Y3.14%
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.
Compared to 1 year ago, AMZN has more shares outstanding
AMZN has more shares outstanding than it did 5 years ago.
AMZN has a better debt/assets ratio than last year.
2.2 Solvency
AMZN has an Altman-Z score of 6.13. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.13, AMZN belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
The Debt to FCF ratio of AMZN is 1.84, which is an excellent value as it means it would take AMZN, only 1.84 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.84, AMZN is doing good in the industry, outperforming 71.88% of the companies in the same industry.
AMZN has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.28, AMZN is in line with its industry, outperforming 53.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.84 | ||
| Altman-Z | 6.13 |
ROIC/WACC1.3
WACC8.96%
2.3 Liquidity
A Current Ratio of 1.09 indicates that AMZN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.09, AMZN is doing worse than 81.25% of the companies in the same industry.
AMZN has a Quick Ratio of 1.09. This is a bad value and indicates that AMZN is not financially healthy enough and could expect problems in meeting its short term obligations.
AMZN's Quick ratio of 0.87 is on the low side compared to the rest of the industry. AMZN is outperformed by 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
AMZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 117.21%, 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 23.57% on average per year.
The Revenue has grown by 11.93% in the past year. This is quite good.
The Revenue has been growing by 19.80% on average over the past years. This is quite good.
EPS 1Y (TTM)117.21%
EPS 3Y11.56%
EPS 5Y23.57%
EPS Q2Q%52.13%
Revenue 1Y (TTM)11.93%
Revenue growth 3Y14.19%
Revenue growth 5Y19.8%
Sales Q2Q%11.04%
3.2 Future
AMZN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.16% yearly.
AMZN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.51% yearly.
EPS Next Y80.82%
EPS Next 2Y47.04%
EPS Next 3Y38.33%
EPS Next 5Y30.16%
Revenue Next Year11.68%
Revenue Next 2Y11.22%
Revenue Next 3Y11.02%
Revenue Next 5Y10.51%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
With a Price/Earnings ratio of 48.16, AMZN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of AMZN is on the same level as its industry peers.
When comparing the Price/Earnings ratio of AMZN to the average of the S&P500 Index (27.73), we can say AMZN is valued expensively.
AMZN is valuated quite expensively with a Price/Forward Earnings ratio of 35.87.
The rest of the industry has a similar Price/Forward Earnings ratio as AMZN.
When comparing the Price/Forward Earnings ratio of AMZN to the average of the S&P500 Index (22.83), we can say AMZN is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.16 | ||
| Fwd PE | 35.87 |
4.2 Price Multiples
AMZN's Enterprise Value to EBITDA ratio is in line with the industry average.
AMZN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.06 | ||
| EV/EBITDA | 20.84 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of AMZN may justify a higher PE ratio.
A more expensive valuation may be justified as AMZN's earnings are expected to grow with 38.33% in the coming years.
PEG (NY)0.6
PEG (5Y)2.04
EPS Next 2Y47.04%
EPS Next 3Y38.33%
5. Dividend
5.1 Amount
No dividends for AMZN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AMAZON.COM INC
NASDAQ:AMZN (12/20/2024, 8:00:00 PM)
After market: 226.06 +1.14 (+0.51%)224.92
+1.63 (+0.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners62.39%
Inst Owner Change0.86%
Ins Owners8.69%
Ins Owner Change-2.95%
Market Cap2365.04B
Analysts84.21
Price Target237.75 (5.7%)
Short Float %0.85%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.45%
Min EPS beat(2)20.18%
Max EPS beat(2)22.71%
EPS beat(4)4
Avg EPS beat(4)20.15%
Min EPS beat(4)15.6%
Max EPS beat(4)22.71%
EPS beat(8)8
Avg EPS beat(8)37.96%
EPS beat(12)10
Avg EPS beat(12)29.11%
EPS beat(16)13
Avg EPS beat(16)30.65%
Revenue beat(2)0
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-0.91%
Revenue beat(4)1
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.25%
Revenue beat(8)4
Avg Revenue beat(8)-0.52%
Revenue beat(12)4
Avg Revenue beat(12)-0.88%
Revenue beat(16)6
Avg Revenue beat(16)-0.77%
PT rev (1m)6.48%
PT rev (3m)6.62%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)18.27%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)8.62%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.16 | ||
| Fwd PE | 35.87 | ||
| P/S | 3.81 | ||
| P/FCF | 55.06 | ||
| P/OCF | 20.98 | ||
| P/B | 9.13 | ||
| P/tB | 10.02 | ||
| EV/EBITDA | 20.84 |
EPS(TTM)4.67
EY2.08%
EPS(NY)6.27
Fwd EY2.79%
FCF(TTM)4.08
FCFY1.82%
OCF(TTM)10.72
OCFY4.77%
SpS58.98
BVpS24.65
TBVpS22.45
PEG (NY)0.6
PEG (5Y)2.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 19.24% | ||
| ROCE | 14.32% | ||
| ROIC | 11.6% | ||
| ROICexc | 14.65% | ||
| ROICexgc | 15.74% | ||
| OM | 9.77% | ||
| PM (TTM) | 8.04% | ||
| GM | 48.41% | ||
| FCFM | 6.93% |
ROA(3y)4.37%
ROA(5y)4.98%
ROE(3y)12.45%
ROE(5y)15.77%
ROIC(3y)6.3%
ROIC(5y)7.39%
ROICexc(3y)8.75%
ROICexc(5y)11.45%
ROICexgc(3y)9.83%
ROICexgc(5y)13.68%
ROCE(3y)7.82%
ROCE(5y)9.16%
ROICexcg growth 3Y-15.77%
ROICexcg growth 5Y-16.12%
ROICexc growth 3Y-13.45%
ROICexc growth 5Y-10.63%
OM growth 3Y2.68%
OM growth 5Y3.78%
PM growth 3Y-1.42%
PM growth 5Y4.12%
GM growth 3Y5.89%
GM growth 5Y3.14%
F-Score7
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.84 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 136.81% | ||
| Cap/Sales | 11.25% | ||
| Interest Coverage | 24.24 | ||
| Cash Conversion | 101.01% | ||
| Profit Quality | 86.13% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 6.13 |
F-Score7
WACC8.96%
ROIC/WACC1.3
Cap/Depr(3y)146.07%
Cap/Depr(5y)134.91%
Cap/Sales(3y)11.52%
Cap/Sales(5y)10.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)117.21%
EPS 3Y11.56%
EPS 5Y23.57%
EPS Q2Q%52.13%
EPS Next Y80.82%
EPS Next 2Y47.04%
EPS Next 3Y38.33%
EPS Next 5Y30.16%
Revenue 1Y (TTM)11.93%
Revenue growth 3Y14.19%
Revenue growth 5Y19.8%
Sales Q2Q%11.04%
Revenue Next Year11.68%
Revenue Next 2Y11.22%
Revenue Next 3Y11.02%
Revenue Next 5Y10.51%
EBIT growth 1Y124.64%
EBIT growth 3Y17.25%
EBIT growth 5Y24.34%
EBIT Next Year313.6%
EBIT Next 3Y78.8%
EBIT Next 5Y47.99%
FCF growth 1Y263.18%
FCF growth 3Y7.51%
FCF growth 5Y13.25%
OCF growth 1Y184.15%
OCF growth 3Y8.74%
OCF growth 5Y22.56%