AMAZON.COM INC (AMZN)
US0231351067 - Common Stock
Taking everything into account, AMZN scores 6 out of 10 in our fundamental rating. AMZN was compared to 32 industry peers in the Broadline Retail industry. AMZN has an excellent profitability rating, but there are some minor concerns on its financial health. AMZN is not priced too expensively while it is growing strongly. Keep and eye on this one! 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 Return On Assets of 8.53%. This is in the better half of the industry: AMZN outperforms 75.00% of its industry peers.
AMZN's Return On Equity of 19.24% is fine compared to the rest of the industry. AMZN outperforms 65.63% of its industry peers.
With a decent Return On Invested Capital value of 11.60%, AMZN is doing good in the industry, outperforming 71.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AMZN is significantly below the industry average of 11.47%.
The 3 year average ROIC (6.30%) for AMZN is below the current ROIC(11.60%), indicating increased profibility in the last year.
| 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.
AMZN's Profit Margin has improved in the last couple of years.
AMZN has a Operating Margin of 9.77%. This is in the better half of the industry: AMZN outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of AMZN has grown nicely.
With a decent Gross Margin value of 48.41%, AMZN is doing good in the industry, outperforming 68.75% of the companies in the same industry.
AMZN's Gross Margin has improved in the last couple of years.
| 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.
AMZN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AMZN has been increased compared to 5 years ago.
The debt/assets ratio for AMZN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.73 indicates that AMZN is not in any danger for bankruptcy at the moment.
The Altman-Z score of AMZN (5.73) is better than 81.25% of its industry peers.
AMZN has a debt to FCF ratio of 1.84. This is a very positive value and a sign of high solvency as it would only need 1.84 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.84, AMZN is in the better half of the industry, outperforming 68.75% 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.
AMZN has a Debt to Equity ratio (0.28) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.84 | ||
| Altman-Z | 5.73 |
ROIC/WACC1.32
WACC8.76%
2.3 Liquidity
AMZN has a Current Ratio of 1.09. 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 (1.09) than 78.13% of its industry peers.
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.
The Quick ratio of AMZN (0.87) is worse than 65.63% 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.
Measured over the past years, AMZN shows a quite strong growth in Revenue. The Revenue has been growing by 19.80% on average per year.
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 29.46% yearly.
Based on estimates for the next years, AMZN will show a quite strong growth in Revenue. The Revenue will grow by 10.89% on average per year.
EPS Next Y80.87%
EPS Next 2Y46.99%
EPS Next 3Y38.35%
EPS Next 5Y29.46%
Revenue Next Year11.68%
Revenue Next 2Y11.22%
Revenue Next 3Y11.03%
Revenue Next 5Y10.89%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 43.44, AMZN can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as AMZN.
When comparing the Price/Earnings ratio of AMZN to the average of the S&P500 Index (28.65), we can say AMZN is valued expensively.
The Price/Forward Earnings ratio is 32.38, which means the current valuation is very expensive for AMZN.
The rest of the industry has a similar Price/Forward Earnings ratio as AMZN.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, AMZN is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.44 | ||
| Fwd PE | 32.38 |
4.2 Price Multiples
AMZN's Enterprise Value to EBITDA ratio is in line with the industry average.
AMZN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.67 | ||
| EV/EBITDA | 18.92 |
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.
AMZN has a very decent 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 38.35% in the coming years.
PEG (NY)0.54
PEG (5Y)1.84
EPS Next 2Y46.99%
EPS Next 3Y38.35%
5. Dividend
5.1 Amount
No dividends for AMZN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AMAZON.COM INC
NASDAQ:AMZN (11/20/2024, 8:06:40 PM)
Premarket: 202.89 0.01 (0%)202.88
-1.73 (-0.85%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
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Market Cap2133.29B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.44 | ||
| Fwd PE | 32.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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PEG (NY)0.54
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 19.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.77% | ||
| PM (TTM) | 8.04% | ||
| GM | 48.41% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
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ROCE(5y)
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ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)117.21%
EPS 3Y11.56%
EPS 5Y
EPS Q2Q%
EPS Next Y80.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.93%
Revenue growth 3Y14.19%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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