AMAZON.COM INC (AMZN) Stock Fundamental Analysis
NASDAQ:AMZN - Nasdaq - US0231351067 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to AMZN. AMZN was compared to 28 industry peers in the Broadline Retail industry. AMZN scores excellent on profitability, but 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
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 10.25%. This is amongst the best in the industry. AMZN outperforms 82.14% of its industry peers.
The Return On Equity of AMZN (21.56%) is better than 82.14% of its industry peers.
The Return On Invested Capital of AMZN (12.86%) is better than 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMZN is below the industry average of 11.59%.
The 3 year average ROIC (8.31%) for AMZN is below the current ROIC(12.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.25% | ||
| ROE | 21.56% | ||
| ROIC | 12.86% |
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's Profit Margin of 10.14% is amongst the best of the industry. AMZN outperforms 85.71% of its industry peers.
AMZN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.02%, AMZN is in the better half of the industry, outperforming 78.57% 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 (49.16%) than 67.86% 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) | 10.14% | ||
| GM | 49.16% |
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
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
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
An Altman-Z score of 6.00 indicates that AMZN is not in any danger for bankruptcy at the moment.
AMZN has a Altman-Z score of 6.00. This is amongst the best in the industry. AMZN outperforms 89.29% of its industry peers.
The Debt to FCF ratio of AMZN is 2.56, which is a good value as it means it would take AMZN, 2.56 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AMZN (2.56) is better than 64.29% of its industry peers.
AMZN has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
AMZN has a better Debt to Equity ratio (0.17) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.56 | ||
| Altman-Z | 6 |
ROIC/WACC1.42
WACC9.07%
2.3 Liquidity
A Current Ratio of 1.05 indicates that AMZN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.05, AMZN is doing worse than 85.71% of the companies in the same industry.
AMZN has a Quick Ratio of 1.05. 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 has a worse Quick ratio (0.84) than 78.57% 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 | 1.05 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
AMZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 71.99%, 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.
AMZN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.08%.
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)71.99%
EPS 3Y37.19%
EPS 5Y36.89%
EPS Q2Q%62.24%
Revenue 1Y (TTM)10.08%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%8.62%
3.2 Future
The Earnings Per Share is expected to grow by 17.92% 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 9.64% yearly.
EPS Next Y13.81%
EPS Next 2Y15.56%
EPS Next 3Y17.87%
EPS Next 5Y17.92%
Revenue Next Year8.91%
Revenue Next 2Y9.23%
Revenue Next 3Y9.43%
Revenue Next 5Y9.64%
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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 36.65, the valuation of AMZN can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AMZN indicates a somewhat cheap valuation: AMZN is cheaper than 60.71% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. AMZN is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 30.47, which means the current valuation is very expensive for AMZN.
The rest of the industry has a similar Price/Forward Earnings ratio as AMZN.
The average S&P500 Price/Forward Earnings ratio is at 21.76. AMZN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.65 | ||
| Fwd PE | 30.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMZN is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMZN indicates a slightly more expensive valuation: AMZN is more expensive than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 114.8 | ||
| EV/EBITDA | 18.02 |
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 17.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.65
PEG (5Y)0.99
EPS Next 2Y15.56%
EPS Next 3Y17.87%
5. Dividend
5.1 Amount
AMZN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
225.02
+2.76 (+1.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners65.26%
Inst Owner Change0%
Ins Owners8.57%
Ins Owner Change-0.47%
Market Cap2388.89B
Analysts84.81
Price Target246.66 (9.62%)
Short Float %0.64%
Short Ratio1.39
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)18.24%
Min EPS beat(2)14.44%
Max EPS beat(2)22.03%
EPS beat(4)4
Avg EPS beat(4)19.84%
Min EPS beat(4)14.44%
Max EPS beat(4)22.71%
EPS beat(8)8
Avg EPS beat(8)32.11%
EPS beat(12)11
Avg EPS beat(12)28.33%
EPS beat(16)13
Avg EPS beat(16)23.35%
Revenue beat(2)0
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-1.56%
Revenue beat(4)0
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)-0.91%
Revenue beat(8)2
Avg Revenue beat(8)-1.04%
Revenue beat(12)4
Avg Revenue beat(12)-0.82%
Revenue beat(16)4
Avg Revenue beat(16)-1.26%
PT rev (1m)0.1%
PT rev (3m)-8.67%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-7.97%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-2.58%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.65 | ||
| Fwd PE | 30.47 | ||
| P/S | 3.67 | ||
| P/FCF | 114.8 | ||
| P/OCF | 20.97 | ||
| P/B | 7.81 | ||
| P/tB | 8.45 | ||
| EV/EBITDA | 18.02 |
EPS(TTM)6.14
EY2.73%
EPS(NY)7.39
Fwd EY3.28%
FCF(TTM)1.96
FCFY0.87%
OCF(TTM)10.73
OCFY4.77%
SpS61.26
BVpS28.81
TBVpS26.64
PEG (NY)2.65
PEG (5Y)0.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.25% | ||
| ROE | 21.56% | ||
| ROCE | 15.35% | ||
| ROIC | 12.86% | ||
| ROICexc | 16.12% | ||
| ROICexgc | 17.19% | ||
| OM | 11.02% | ||
| PM (TTM) | 10.14% | ||
| GM | 49.16% | ||
| FCFM | 3.2% |
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%
ROICexcg growth 3Y12.76%
ROICexcg 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 Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.56 | ||
| Debt/EBITDA | 0.42 | ||
| Cap/Depr | 168.12% | ||
| Cap/Sales | 14.32% | ||
| Interest Coverage | 30.91 | ||
| Cash Conversion | 89.64% | ||
| Profit Quality | 31.56% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 6 |
F-Score6
WACC9.07%
ROIC/WACC1.42
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)71.99%
EPS 3Y37.19%
EPS 5Y36.89%
EPS Q2Q%62.24%
EPS Next Y13.81%
EPS Next 2Y15.56%
EPS Next 3Y17.87%
EPS Next 5Y17.92%
Revenue 1Y (TTM)10.08%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%8.62%
Revenue Next Year8.91%
Revenue Next 2Y9.23%
Revenue Next 3Y9.43%
Revenue Next 5Y9.64%
EBIT growth 1Y51.29%
EBIT growth 3Y40.17%
EBIT growth 5Y36.35%
EBIT Next Year143.61%
EBIT Next 3Y51.65%
EBIT Next 5Y32.09%
FCF growth 1Y342.8%
FCF growth 3YN/A
FCF growth 5Y8.71%
OCF growth 1Y109.65%
OCF growth 3Y35.74%
OCF growth 5Y24.65%