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 31 industry peers in the Broadline Retail industry. While AMZN has a great profitability rating, there are some minor concerns on its financial health. AMZN is valued quite expensively, but it does show have an excellent growth rating. These ratings would make AMZN suitable 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's Return On Assets of 9.48% is amongst the best of the industry. AMZN outperforms 80.65% of its industry peers.
The Return On Equity of AMZN (20.72%) is better than 77.42% of its industry peers.
AMZN's Return On Invested Capital of 12.89% is fine compared to the rest of the industry. AMZN outperforms 77.42% of its industry peers.
AMZN had an Average Return On Invested Capital over the past 3 years of 8.32%. This is below the industry average of 10.92%.
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 83.87% 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 10.75%, AMZN is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
AMZN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 48.85%, AMZN is in the better half of the industry, outperforming 70.97% 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
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.
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
AMZN has an Altman-Z score of 5.06. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
AMZN has a better Altman-Z score (5.06) than 83.87% of its industry peers.
AMZN has a debt to FCF ratio of 2.31. This is a good value and a sign of high solvency as AMZN would need 2.31 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.31, AMZN is doing good in the industry, outperforming 77.42% of the companies in the same industry.
AMZN has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
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 | 5.06 |
ROIC/WACC1.34
WACC9.6%
2.3 Liquidity
AMZN has a Current Ratio of 1.06. This is a normal value and indicates that AMZN is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.06, AMZN is not doing good in the industry: 83.87% 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.
With a Quick ratio value of 0.87, AMZN is not doing good in the industry: 64.52% 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 | 1.06 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 90.69% over the past year.
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.
Looking at the last year, AMZN shows a quite strong growth in Revenue. The Revenue has grown by 10.99% in the last year.
The Revenue has been growing by 17.86% on average over the past years. This is quite good.
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
Based on estimates for the next years, AMZN will show a very strong growth in Earnings Per Share. The EPS will grow by 20.25% on average per year.
The Revenue is expected to grow by 9.85% on average over the next years. This is quite good.
EPS Next Y16.82%
EPS Next 2Y18.27%
EPS Next 3Y20%
EPS Next 5Y20.25%
Revenue Next Year9.35%
Revenue Next 2Y9.7%
Revenue Next 3Y9.8%
Revenue Next 5Y9.85%
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 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
The Price/Earnings ratio is 31.52, which means the current valuation is very expensive for AMZN.
Compared to the rest of the industry, the Price/Earnings ratio of AMZN is on the same level as its industry peers.
AMZN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.13.
With a Price/Forward Earnings ratio of 26.98, AMZN can be considered very expensive at the moment.
AMZN's Price/Forward Earnings is on the same level as the industry average.
AMZN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.52 | ||
| Fwd PE | 26.98 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AMZN.
The rest of the industry has a similar Price/Free Cash Flow ratio as AMZN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.19 | ||
| EV/EBITDA | 14.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AMZN does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of AMZN may justify a higher PE ratio.
AMZN's earnings are expected to grow with 20.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.87
PEG (5Y)0.85
EPS Next 2Y18.27%
EPS Next 3Y20%
5. Dividend
5.1 Amount
No dividends for AMZN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
174.33
-5.26 (-2.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners65.25%
Inst Owner Change0%
Ins Owners8.6%
Ins Owner Change-1.98%
Market Cap1847.50B
Analysts84.94
Price Target270.08 (54.92%)
Short Float %0.74%
Short Ratio1.82
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)-0.75%
PT rev (3m)10.82%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-0.83%
EPS NY rev (1m)0.19%
EPS NY rev (3m)2.38%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.52 | ||
| Fwd PE | 26.98 | ||
| P/S | 2.9 | ||
| P/FCF | 56.19 | ||
| P/OCF | 15.94 | ||
| P/B | 6.46 | ||
| P/tB | 7.03 | ||
| EV/EBITDA | 14.82 |
EPS(TTM)5.53
EY3.17%
EPS(NY)6.46
Fwd EY3.71%
FCF(TTM)3.1
FCFY1.78%
OCF(TTM)10.93
OCFY6.27%
SpS60.2
BVpS26.98
TBVpS24.81
PEG (NY)1.87
PEG (5Y)0.85
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 | 5.06 |
F-Score7
WACC9.6%
ROIC/WACC1.34
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 Y16.82%
EPS Next 2Y18.27%
EPS Next 3Y20%
EPS Next 5Y20.25%
Revenue 1Y (TTM)10.99%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%10.49%
Revenue Next Year9.35%
Revenue Next 2Y9.7%
Revenue Next 3Y9.8%
Revenue Next 5Y9.85%
EBIT growth 1Y86.13%
EBIT growth 3Y40.22%
EBIT growth 5Y36.38%
EBIT Next Year153.17%
EBIT Next 3Y52.92%
EBIT Next 5Y32.71%
FCF growth 1Y2.05%
FCF growth 3YN/A
FCF growth 5Y8.71%
OCF growth 1Y36.41%
OCF growth 3Y35.74%
OCF growth 5Y24.65%