AMAZON.COM INC (AMZN) Stock Fundamental Analysis
NASDAQ:AMZN - Nasdaq - US0231351067 - Common Stock - Currency: USD
AMZN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 shows excellent growth, but is valued quite expensive already. With these ratings, AMZN could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
AMZN had positive earnings in the past year.
In the past year AMZN had a positive cash flow from operations.
Of the past 5 years AMZN 4 years were profitable.
In the past 5 years AMZN always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.48%, AMZN belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
AMZN has a Return On Equity of 20.72%. This is in the better half of the industry: AMZN outperforms 67.74% of its industry peers.
AMZN's Return On Invested Capital of 12.89% is fine compared to the rest of the industry. AMZN outperforms 74.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMZN is below the industry average of 11.29%.
The 3 year average ROIC (8.32%) for AMZN is below the current ROIC(12.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.48% | ||
| ROE | 20.72% | ||
| ROIC | 12.89% |
ROA(3y)4.89%
ROA(5y)5.85%
ROE(3y)11.31%
ROE(5y)16.18%
ROIC(3y)8.32%
ROIC(5y)8.45%
1.3 Margins
AMZN's Profit Margin of 9.29% is amongst the best of the industry. AMZN outperforms 87.10% of its industry peers.
AMZN's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 10.75%, AMZN is doing good in the industry, outperforming 74.19% of the companies in the same industry.
AMZN's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 48.85%, AMZN is doing good in the industry, outperforming 67.74% of the companies in the same industry.
In the last couple of years the Gross Margin of AMZN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.75% | ||
| PM (TTM) | 9.29% | ||
| GM | 48.85% |
OM growth 3Y26.63%
OM growth 5Y15.71%
PM growth 3Y9.36%
PM growth 5Y17.59%
GM growth 3Y5.14%
GM growth 5Y3.57%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AMZN is still creating some value.
Compared to 1 year ago, AMZN has more shares outstanding
Compared to 5 years ago, AMZN has more shares outstanding
AMZN has a better debt/assets ratio than last year.
2.2 Solvency
AMZN has an Altman-Z score of 5.97. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AMZN (5.97) is better than 80.65% of its industry peers.
The Debt to FCF ratio of AMZN is 2.31, which is a good value as it means it would take AMZN, 2.31 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.31, AMZN is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that AMZN is not too dependend on debt financing.
AMZN has a Debt to Equity ratio (0.24) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 5.97 |
ROIC/WACC1.22
WACC10.54%
2.3 Liquidity
A Current Ratio of 1.06 indicates that AMZN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.06, AMZN is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
AMZN has a Quick Ratio of 1.06. 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 61.29% of its industry peers.
The current and quick ratio evaluation for AMZN is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| 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 90.69%, which is quite impressive.
AMZN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.89% yearly.
Looking at the last year, AMZN shows a quite strong growth in Revenue. The Revenue has grown by 10.99% in the last year.
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)90.69%
EPS 3Y37.19%
EPS 5Y36.89%
EPS Q2Q%86%
Revenue 1Y (TTM)10.99%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%10.49%
3.2 Future
The Earnings Per Share is expected to grow by 19.78% on average over the next years. This is quite good.
AMZN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.12% yearly.
EPS Next Y16.6%
EPS Next 2Y18.35%
EPS Next 3Y20.6%
EPS Next 5Y19.78%
Revenue Next Year10.71%
Revenue Next 2Y10.6%
Revenue Next 3Y10.39%
Revenue Next 5Y10.12%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 39.16 indicates a quite expensive valuation of AMZN.
AMZN's Price/Earnings ratio is in line with the industry average.
AMZN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 33.59, the valuation of AMZN can be described as expensive.
AMZN's Price/Forward Earnings is on the same level as the industry average.
AMZN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.16 | ||
| Fwd PE | 33.59 |
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 the industry average as 61.29% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.81 | ||
| EV/EBITDA | 19.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AMZN has an outstanding profitability rating, which may justify a higher PE ratio.
AMZN's earnings are expected to grow with 20.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.36
PEG (5Y)1.06
EPS Next 2Y18.35%
EPS Next 3Y20.6%
5. Dividend
5.1 Amount
AMZN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
216.58
-6.3 (-2.83%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners64.13%
Inst Owner Change2.9%
Ins Owners8.85%
Ins Owner Change-2.01%
Market Cap2295.26B
Analysts84.1
Price Target253.38 (16.99%)
Short Float %0.73%
Short Ratio2
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)22.37%
Min EPS beat(2)22.03%
Max EPS beat(2)22.71%
EPS beat(4)4
Avg EPS beat(4)20.13%
Min EPS beat(4)15.6%
Max EPS beat(4)22.71%
EPS beat(8)8
Avg EPS beat(8)35.74%
EPS beat(12)10
Avg EPS beat(12)26.01%
EPS beat(16)13
Avg EPS beat(16)26.34%
Revenue beat(2)0
Avg Revenue beat(2)-1.31%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-0.91%
Revenue beat(4)0
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)-0.91%
Revenue beat(8)3
Avg Revenue beat(8)-0.81%
Revenue beat(12)4
Avg Revenue beat(12)-0.85%
Revenue beat(16)5
Avg Revenue beat(16)-1.05%
PT rev (1m)3.97%
PT rev (3m)13.48%
EPS NQ rev (1m)-1.06%
EPS NQ rev (3m)35.7%
EPS NY rev (1m)2.18%
EPS NY rev (3m)2.91%
Revenue NQ rev (1m)-2.32%
Revenue NQ rev (3m)-2.37%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.16 | ||
| Fwd PE | 33.59 | ||
| P/S | 3.6 | ||
| P/FCF | 69.81 | ||
| P/OCF | 19.81 | ||
| P/B | 8.03 | ||
| P/tB | 8.73 | ||
| EV/EBITDA | 19.06 |
EPS(TTM)5.53
EY2.55%
EPS(NY)6.45
Fwd EY2.98%
FCF(TTM)3.1
FCFY1.43%
OCF(TTM)10.93
OCFY5.05%
SpS60.2
BVpS26.98
TBVpS24.81
PEG (NY)2.36
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.48% | ||
| ROE | 20.72% | ||
| ROCE | 15.4% | ||
| ROIC | 12.89% | ||
| ROICexc | 16.68% | ||
| ROICexgc | 17.88% | ||
| OM | 10.75% | ||
| PM (TTM) | 9.29% | ||
| GM | 48.85% | ||
| FCFM | 5.15% |
ROA(3y)4.89%
ROA(5y)5.85%
ROE(3y)11.31%
ROE(5y)16.18%
ROIC(3y)8.32%
ROIC(5y)8.45%
ROICexc(3y)10.81%
ROICexc(5y)12.21%
ROICexgc(3y)12.02%
ROICexgc(5y)13.98%
ROCE(3y)9.97%
ROCE(5y)10.12%
ROICexcg growth 3Y12.8%
ROICexcg growth 5Y-0.82%
ROICexc growth 3Y13.63%
ROICexc growth 5Y2.45%
OM growth 3Y26.63%
OM growth 5Y15.71%
PM growth 3Y9.36%
PM growth 5Y17.59%
GM growth 3Y5.14%
GM growth 5Y3.57%
F-Score7
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.31 | ||
| Debt/EBITDA | 0.57 | ||
| Cap/Depr | 157.21% | ||
| Cap/Sales | 13.01% | ||
| Interest Coverage | 29.02 | ||
| Cash Conversion | 95.46% | ||
| Profit Quality | 55.49% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 5.97 |
F-Score7
WACC10.54%
ROIC/WACC1.22
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)90.69%
EPS 3Y37.19%
EPS 5Y36.89%
EPS Q2Q%86%
EPS Next Y16.6%
EPS Next 2Y18.35%
EPS Next 3Y20.6%
EPS Next 5Y19.78%
Revenue 1Y (TTM)10.99%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%10.49%
Revenue Next Year10.71%
Revenue Next 2Y10.6%
Revenue Next 3Y10.39%
Revenue Next 5Y10.12%
EBIT growth 1Y86.13%
EBIT growth 3Y40.22%
EBIT growth 5Y36.38%
EBIT Next Year150.22%
EBIT Next 3Y51.56%
EBIT Next 5Y32.24%
FCF growth 1Y2.05%
FCF growth 3YN/A
FCF growth 5Y8.71%
OCF growth 1Y36.41%
OCF growth 3Y35.74%
OCF growth 5Y24.65%