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%)
We assign a fundamental rating of 6 out of 10 to AMZN. AMZN was compared to 30 industry peers in the Broadline Retail industry. AMZN scores excellent on profitability, but 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.
AMZN had a positive operating cash flow in the past year.
AMZN had positive earnings in 4 of the past 5 years.
Each year in the past 5 years AMZN had a positive operating cash flow.
1.2 Ratios
AMZN's Return On Assets of 10.51% is amongst the best of 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 Return On Invested Capital of 11.98%. This is in the better half of the industry: AMZN outperforms 73.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMZN 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
AMZN has a Profit Margin of 11.06%. This is amongst the best in the industry. AMZN outperforms 86.67% of its industry peers.
AMZN's Profit Margin has improved in the last couple of years.
AMZN's Operating Margin of 11.02% is fine compared to the rest of the industry. AMZN outperforms 80.00% 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 50.05%, AMZN is doing good in the industry, outperforming 70.00% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AMZN is still 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.
AMZN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.98 indicates that AMZN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.98, AMZN is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
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 in line with its industry peers.
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 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 4.81 | ||
| Altman-Z | 5.98 |
ROIC/WACC1.39
WACC8.64%
2.3 Liquidity
A Current Ratio of 1.01 indicates that AMZN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.01, AMZN is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
A Quick Ratio of 0.80 indicates that AMZN may have some problems paying its short term obligations.
The Quick ratio of AMZN (0.80) is worse than 80.00% of its industry peers.
| 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.
AMZN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.89% yearly.
The Revenue has grown by 11.48% in the past year. This is quite good.
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)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
AMZN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.45% yearly.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
With a Price/Earnings ratio of 33.15, AMZN can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as AMZN.
AMZN is valuated rather expensively when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 29.41 indicates a quite expensive valuation of AMZN.
The rest of the industry has a similar Price/Forward Earnings ratio as AMZN.
AMZN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.59.
| 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.
Based on the Price/Free Cash Flow ratio, AMZN is valued a bit more expensive than 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 237.02 | ||
| EV/EBITDA | 17.83 |
4.3 Compensation for Growth
AMZN's 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.
A more expensive valuation may be justified as AMZN's earnings are expected to grow with 20.94% in the coming years.
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)4.45%
EPS NQ rev (3m)5.86%
EPS NY rev (1m)4.77%
EPS NY rev (3m)13.02%
Revenue NQ rev (1m)1.59%
Revenue NQ rev (3m)1.85%
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 | 17.83 |
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 | 5.98 |
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.