AMAZON.COM INC (AMZN) Stock Fundamental Analysis
USA - NASDAQ:AMZN - US0231351067 - Common Stock
234.69 USD
-2.89 (-1.22%)
235.52 USD
+0.83 (+0.35%)
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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AMZN is valued quite expensively, but it does show have an excellent growth rating.
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.
In the past 5 years AMZN always reported a positive cash flow from operatings.
1.2 Ratios
AMZN has a Return On Assets of 10.51%. This is amongst the best in the industry. AMZN outperforms 90.00% of its industry peers.
AMZN's Return On Equity of 20.69% is amongst the best of the industry. AMZN outperforms 83.33% of its industry peers.
AMZN has a better Return On Invested Capital (11.98%) than 73.33% of its industry peers.
AMZN had an Average Return On Invested Capital over the past 3 years of 8.31%. This is below the industry average of 10.43%.
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.
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%
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.
Compared to 1 year ago, AMZN has more shares outstanding
The number of shares outstanding for AMZN has been increased compared to 5 years ago.
Compared to 1 year ago, AMZN has an improved debt to assets ratio.
2.2 Solvency
AMZN has an Altman-Z score of 5.93. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AMZN (5.93) is better than 80.00% 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 comparable to the rest of the industry.
AMZN has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AMZN (0.14) is better than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 4.81 | ||
| Altman-Z | 5.93 |
ROIC/WACC1.39
WACC8.64%
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 has a worse Current ratio (1.01) than 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: 80.00% 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
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.
The Earnings Per Share has been growing by 36.89% on average over the past years. This is a very strong growth
Looking at the last year, AMZN shows a quite strong growth in Revenue. The Revenue has grown by 11.48% in the last year.
Measured over the past years, AMZN 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
The Earnings Per Share is expected to grow by 20.45% on average over the next years. This is a very strong growth
Based on estimates for the next years, AMZN will show a quite strong growth in Revenue. The Revenue will grow by 11.04% on average per year.
EPS Next Y29.2%
EPS Next 2Y20.12%
EPS Next 3Y20.94%
EPS Next 5Y20.45%
Revenue Next Year11.74%
Revenue Next 2Y11.33%
Revenue Next 3Y11.2%
Revenue Next 5Y11.04%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 33.15, the valuation of AMZN can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as AMZN.
The average S&P500 Price/Earnings ratio is at 25.89. AMZN is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 29.41, which means the current valuation is very expensive for AMZN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMZN is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of AMZN to the average of the S&P500 Index (34.59), we can say AMZN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.15 | ||
| Fwd PE | 29.41 |
4.2 Price Multiples
AMZN's Enterprise Value to EBITDA is on the same level as the industry average.
66.67% of the companies in the same industry are cheaper than AMZN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 237.02 | ||
| EV/EBITDA | 17.61 |
4.3 Compensation for Growth
The 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 20.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)0.9
EPS Next 2Y20.12%
EPS Next 3Y20.94%
5. Dividend
5.1 Amount
AMZN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
234.69
-2.89 (-1.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners66.15%
Inst Owner Change-2.31%
Ins Owners8.29%
Ins Owner Change-2.95%
Market Cap2.50T
Revenue(TTM)691.33B
Net Income(TTM)76.48B
Analysts85.13
Price Target272.31 (16.03%)
Short Float %0.77%
Short Ratio1.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/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)22.74%
Min EPS beat(2)21.56%
Max EPS beat(2)23.92%
EPS beat(4)4
Avg EPS beat(4)20.49%
Min EPS beat(4)14.44%
Max EPS beat(4)23.92%
EPS beat(8)8
Avg EPS beat(8)20.32%
EPS beat(12)12
Avg EPS beat(12)32.13%
EPS beat(16)14
Avg EPS beat(16)26.96%
Revenue beat(2)1
Avg Revenue beat(2)0.4%
Min Revenue beat(2)-0.63%
Max Revenue beat(2)1.44%
Revenue beat(4)1
Avg Revenue beat(4)-0.61%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)1.44%
Revenue beat(8)2
Avg Revenue beat(8)-0.86%
Revenue beat(12)5
Avg Revenue beat(12)-0.55%
Revenue beat(16)5
Avg Revenue beat(16)-0.81%
PT rev (1m)1.11%
PT rev (3m)2.63%
EPS NQ rev (1m)4.74%
EPS NQ rev (3m)5.28%
EPS NY rev (1m)4.77%
EPS NY rev (3m)13.02%
Revenue NQ rev (1m)1.56%
Revenue NQ rev (3m)1.52%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.15 | ||
| Fwd PE | 29.41 | ||
| P/S | 3.62 | ||
| P/FCF | 237.02 | ||
| P/OCF | 19.15 | ||
| P/B | 6.77 | ||
| P/tB | 7.23 | ||
| EV/EBITDA | 17.61 |
EPS(TTM)7.08
EY3.02%
EPS(NY)7.98
Fwd EY3.4%
FCF(TTM)0.99
FCFY0.42%
OCF(TTM)12.25
OCFY5.22%
SpS64.82
BVpS34.66
TBVpS32.48
PEG (NY)1.14
PEG (5Y)0.9
Graham Number74.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.51% | ||
| ROE | 20.69% | ||
| ROCE | 14.3% | ||
| ROIC | 11.98% | ||
| ROICexc | 14.56% | ||
| ROICexgc | 15.37% | ||
| OM | 11.02% | ||
| PM (TTM) | 11.06% | ||
| GM | 50.05% | ||
| FCFM | 1.53% |
ROA(3y)4.89%
ROA(5y)5.85%
ROE(3y)11.31%
ROE(5y)16.18%
ROIC(3y)8.31%
ROIC(5y)8.44%
ROICexc(3y)10.81%
ROICexc(5y)12.21%
ROICexgc(3y)12.01%
ROICexgc(5y)13.98%
ROCE(3y)9.97%
ROCE(5y)10.12%
ROICexgc growth 3Y12.76%
ROICexgc growth 5Y-0.85%
ROICexc growth 3Y13.59%
ROICexc growth 5Y2.43%
OM growth 3Y26.58%
OM growth 5Y15.69%
PM growth 3Y9.36%
PM growth 5Y17.59%
GM growth 3Y5.14%
GM growth 5Y3.57%
F-Score6
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 4.81 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 194.02% | ||
| Cap/Sales | 17.38% | ||
| Interest Coverage | 35.33 | ||
| Cash Conversion | 94.62% | ||
| Profit Quality | 13.81% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 5.93 |
F-Score6
WACC8.64%
ROIC/WACC1.39
Cap/Depr(3y)139.13%
Cap/Depr(5y)150.87%
Cap/Sales(3y)11.52%
Cap/Sales(5y)11.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)51.61%
EPS 3Y37.19%
EPS 5Y36.89%
EPS Q2Q%36.36%
EPS Next Y29.2%
EPS Next 2Y20.12%
EPS Next 3Y20.94%
EPS Next 5Y20.45%
Revenue 1Y (TTM)11.48%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%13.4%
Revenue Next Year11.74%
Revenue Next 2Y11.33%
Revenue Next 3Y11.2%
Revenue Next 5Y11.04%
EBIT growth 1Y25.75%
EBIT growth 3Y40.17%
EBIT growth 5Y36.35%
EBIT Next Year150.72%
EBIT Next 3Y52.77%
EBIT Next 5Y39.32%
FCF growth 1Y-37.59%
FCF growth 3YN/A
FCF growth 5Y8.71%
OCF growth 1Y82.39%
OCF growth 3Y35.74%
OCF growth 5Y24.65%
AMAZON.COM INC / AMZN FAQ
Can you provide the ChartMill fundamental rating for AMAZON.COM INC?
ChartMill assigns a fundamental rating of 6 / 10 to AMZN.
Can you provide the valuation status for AMAZON.COM INC?
ChartMill assigns a valuation rating of 3 / 10 to AMAZON.COM INC (AMZN). This can be considered as Overvalued.
What is the profitability of AMZN stock?
AMAZON.COM INC (AMZN) has a profitability rating of 8 / 10.
What are the PE and PB ratios of AMAZON.COM INC (AMZN) stock?
The Price/Earnings (PE) ratio for AMAZON.COM INC (AMZN) is 33.15 and the Price/Book (PB) ratio is 6.77.