AMAZON.COM INC (AMZN) Stock Fundamental Analysis
USA - NASDAQ:AMZN - US0231351067 - Common Stock
213.04 USD
-1.43 (-0.67%)
213.56 USD
+0.52 (+0.24%)
Taking everything into account, AMZN scores 6 out of 10 in our fundamental rating. AMZN was compared to 28 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 valued quite expensive, but it does show an excellent growth. 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.
Of the past 5 years AMZN 4 years were profitable.
Each year in the past 5 years AMZN had a positive operating cash flow.
1.2 Ratios
AMZN has a better Return On Assets (10.35%) than 90.00% of its industry peers.
AMZN has a Return On Equity of 21.16%. This is amongst the best in the industry. AMZN outperforms 83.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.89%, AMZN is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AMZN is below the industry average of 10.41%.
The last Return On Invested Capital (12.89%) for AMZN is above the 3 year average (8.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.35% | ||
| ROE | 21.16% | ||
| ROIC | 12.89% |
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 10.54% is amongst the best of the industry. AMZN outperforms 86.67% of its industry peers.
In the last couple of years the Profit Margin of AMZN has grown nicely.
With a decent Operating Margin value of 11.37%, AMZN is doing good in the industry, outperforming 80.00% of the companies in the same industry.
AMZN's Operating Margin has improved in the last couple of years.
The Gross Margin of AMZN (49.61%) is better than 70.00% of its industry peers.
AMZN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.37% | ||
| PM (TTM) | 10.54% | ||
| GM | 49.61% |
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.
AMZN has more shares outstanding than it did 1 year ago.
AMZN has more shares outstanding than it did 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 5.70 indicates that AMZN is not in any danger for bankruptcy at the moment.
AMZN has a better Altman-Z score (5.70) than 76.67% of its industry peers.
The Debt to FCF ratio of AMZN is 3.76, which is a good value as it means it would take AMZN, 3.76 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.76, AMZN is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that AMZN is not too dependend on debt financing.
The Debt to Equity ratio of AMZN (0.15) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 3.76 | ||
| Altman-Z | 5.7 |
ROIC/WACC1.53
WACC8.45%
2.3 Liquidity
A Current Ratio of 1.02 indicates that AMZN should not have too much problems paying its short term obligations.
The Current ratio of AMZN (1.02) is worse than 83.33% of its industry peers.
AMZN has a Quick Ratio of 1.02. 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 0.81, AMZN is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
AMZN does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.02 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
AMZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 56.94%, 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 10.87%.
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)56.94%
EPS 3Y37.19%
EPS 5Y36.89%
EPS Q2Q%33.33%
Revenue 1Y (TTM)10.87%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%13.33%
3.2 Future
AMZN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.37% yearly.
AMZN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.18% yearly.
EPS Next Y23.32%
EPS Next 2Y18.3%
EPS Next 3Y18.96%
EPS Next 5Y19.37%
Revenue Next Year11.19%
Revenue Next 2Y10.75%
Revenue Next 3Y10.63%
Revenue Next 5Y10.18%
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.
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
Based on the Price/Earnings ratio of 32.48, the valuation of AMZN can be described as expensive.
Based on the Price/Earnings ratio, AMZN is valued a bit cheaper than 63.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.40, AMZN is valued at the same level.
Based on the Price/Forward Earnings ratio of 27.53, the valuation of AMZN can be described as expensive.
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 (22.94), we can say AMZN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.48 | ||
| Fwd PE | 27.53 |
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 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 168.54 | ||
| EV/EBITDA | 16.28 |
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.
A more expensive valuation may be justified as AMZN's earnings are expected to grow with 18.96% in the coming years.
PEG (NY)1.39
PEG (5Y)0.88
EPS Next 2Y18.3%
EPS Next 3Y18.96%
5. Dividend
5.1 Amount
No dividends for AMZN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
213.04
-1.43 (-0.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners66.15%
Inst Owner Change0.04%
Ins Owners8.29%
Ins Owner Change-2.94%
Market Cap2272.05B
Analysts85.13
Price Target269.33 (26.42%)
Short Float %0.72%
Short Ratio1.61
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)19.18%
Min EPS beat(2)14.44%
Max EPS beat(2)23.92%
EPS beat(4)4
Avg EPS beat(4)20.78%
Min EPS beat(4)14.44%
Max EPS beat(4)23.92%
EPS beat(8)8
Avg EPS beat(8)24.84%
EPS beat(12)11
Avg EPS beat(12)28.45%
EPS beat(16)13
Avg EPS beat(16)23.56%
Revenue beat(2)1
Avg Revenue beat(2)-0.06%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)1.44%
Revenue beat(4)1
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)1.44%
Revenue beat(8)2
Avg Revenue beat(8)-0.88%
Revenue beat(12)5
Avg Revenue beat(12)-0.69%
Revenue beat(16)5
Avg Revenue beat(16)-0.94%
PT rev (1m)0.33%
PT rev (3m)6.78%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)4.52%
EPS NY rev (1m)0.17%
EPS NY rev (3m)7.88%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)2.73%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.48 | ||
| Fwd PE | 27.53 | ||
| P/S | 3.39 | ||
| P/FCF | 168.54 | ||
| P/OCF | 18.76 | ||
| P/B | 6.81 | ||
| P/tB | 7.31 | ||
| EV/EBITDA | 16.28 |
EPS(TTM)6.56
EY3.08%
EPS(NY)7.74
Fwd EY3.63%
FCF(TTM)1.26
FCFY0.59%
OCF(TTM)11.36
OCFY5.33%
SpS62.83
BVpS31.3
TBVpS29.13
PEG (NY)1.39
PEG (5Y)0.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.35% | ||
| ROE | 21.16% | ||
| ROCE | 15.38% | ||
| ROIC | 12.89% | ||
| ROICexc | 15.87% | ||
| ROICexgc | 16.84% | ||
| OM | 11.37% | ||
| PM (TTM) | 10.54% | ||
| GM | 49.61% | ||
| FCFM | 2.01% |
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 Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 3.76 | ||
| Debt/EBITDA | 0.38 | ||
| Cap/Depr | 183.83% | ||
| Cap/Sales | 16.07% | ||
| Interest Coverage | 35.21 | ||
| Cash Conversion | 89.9% | ||
| Profit Quality | 19.09% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 5.7 |
F-Score6
WACC8.45%
ROIC/WACC1.53
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)56.94%
EPS 3Y37.19%
EPS 5Y36.89%
EPS Q2Q%33.33%
EPS Next Y23.32%
EPS Next 2Y18.3%
EPS Next 3Y18.96%
EPS Next 5Y19.37%
Revenue 1Y (TTM)10.87%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%13.33%
Revenue Next Year11.19%
Revenue Next 2Y10.75%
Revenue Next 3Y10.63%
Revenue Next 5Y10.18%
EBIT growth 1Y40.12%
EBIT growth 3Y40.17%
EBIT growth 5Y36.35%
EBIT Next Year150.72%
EBIT Next 3Y52.77%
EBIT Next 5Y36.82%
FCF growth 1Y320.1%
FCF growth 3YN/A
FCF growth 5Y8.71%
OCF growth 1Y95.88%
OCF growth 3Y35.74%
OCF growth 5Y24.65%