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AMAZON.COM INC (AMZN) Stock Fundamental Analysis

NASDAQ:AMZN - Nasdaq - US0231351067 - Common Stock

230.71  +4.77 (+2.11%)

After market: 231.41 +0.7 (+0.3%)

Fundamental Rating

6

Taking everything into account, AMZN scores 6 out of 10 in our fundamental rating. AMZN was compared to 32 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make AMZN a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

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7

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.
AMZN Yearly Net Income VS EBIT VS OCF VS FCFAMZN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20B 40B 60B 80B

1.2 Ratios

The Return On Assets of AMZN (8.53%) is better than 80.65% of its industry peers.
AMZN has a Return On Equity of 19.24%. This is in the better half of the industry: AMZN outperforms 67.74% of its industry peers.
The Return On Invested Capital of AMZN (11.60%) is better than 74.19% of its industry peers.
AMZN had an Average Return On Invested Capital over the past 3 years of 6.30%. This is below the industry average of 11.22%.
The 3 year average ROIC (6.30%) for AMZN is below the current ROIC(11.60%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 8.53%
ROE 19.24%
ROIC 11.6%
ROA(3y)4.37%
ROA(5y)4.98%
ROE(3y)12.45%
ROE(5y)15.77%
ROIC(3y)6.3%
ROIC(5y)7.39%
AMZN Yearly ROA, ROE, ROICAMZN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15 20

1.3 Margins

Looking at the Profit Margin, with a value of 8.04%, AMZN is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
AMZN's Profit Margin has improved in the last couple of years.
AMZN has a Operating Margin of 9.77%. This is in the better half of the industry: AMZN outperforms 74.19% of its industry peers.
AMZN's Operating Margin has improved in the last couple of years.
AMZN's Gross Margin of 48.41% is fine compared to the rest of the industry. AMZN outperforms 67.74% of its industry peers.
AMZN's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 9.77%
PM (TTM) 8.04%
GM 48.41%
OM growth 3Y2.68%
OM growth 5Y3.78%
PM growth 3Y-1.42%
PM growth 5Y4.12%
GM growth 3Y5.89%
GM growth 5Y3.14%
AMZN Yearly Profit, Operating, Gross MarginsAMZN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30 40

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5

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.
Compared to 1 year ago, AMZN has more shares outstanding
AMZN has more shares outstanding than it did 5 years ago.
AMZN has a better debt/assets ratio than last year.
AMZN Yearly Shares OutstandingAMZN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B
AMZN Yearly Total Debt VS Total AssetsAMZN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 100B 200B 300B 400B 500B

2.2 Solvency

AMZN has an Altman-Z score of 6.18. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
AMZN has a Altman-Z score of 6.18. This is amongst the best in the industry. AMZN outperforms 83.87% of its industry peers.
AMZN has a debt to FCF ratio of 1.84. This is a very positive value and a sign of high solvency as it would only need 1.84 years to pay back of all of its debts.
AMZN's Debt to FCF ratio of 1.84 is fine compared to the rest of the industry. AMZN outperforms 70.97% of its industry peers.
AMZN has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
AMZN has a Debt to Equity ratio (0.28) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF 1.84
Altman-Z 6.18
ROIC/WACC1.29
WACC9.02%
AMZN Yearly LT Debt VS Equity VS FCFAMZN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50B 100B 150B 200B

2.3 Liquidity

A Current Ratio of 1.09 indicates that AMZN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.09, AMZN is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
A Quick Ratio of 0.87 indicates that AMZN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.87, AMZN is doing worse than 61.29% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 0.87
AMZN Yearly Current Assets VS Current LiabilitesAMZN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50B 100B 150B

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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 117.21%, 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 23.57% on average per year.
AMZN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.93%.
The Revenue has been growing by 19.80% on average over the past years. This is quite good.
EPS 1Y (TTM)117.21%
EPS 3Y11.56%
EPS 5Y23.57%
EPS Q2Q%52.13%
Revenue 1Y (TTM)11.93%
Revenue growth 3Y14.19%
Revenue growth 5Y19.8%
Sales Q2Q%11.04%

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 30.16% on average per year.
AMZN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.51% yearly.
EPS Next Y80.57%
EPS Next 2Y47.51%
EPS Next 3Y38.64%
EPS Next 5Y30.16%
Revenue Next Year11.68%
Revenue Next 2Y11.22%
Revenue Next 3Y11.04%
Revenue Next 5Y10.51%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.
AMZN Yearly Revenue VS EstimatesAMZN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 200B 400B 600B 800B 1T
AMZN Yearly EPS VS EstimatesAMZN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 5 10 15

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 49.40, the valuation of AMZN can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as AMZN.
When comparing the Price/Earnings ratio of AMZN to the average of the S&P500 Index (28.29), we can say AMZN is valued expensively.
The Price/Forward Earnings ratio is 36.56, which means the current valuation is very expensive for AMZN.
The rest of the industry has a similar Price/Forward Earnings ratio as AMZN.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, AMZN is valued a bit more expensive.
Industry RankSector Rank
PE 49.4
Fwd PE 36.56
AMZN Price Earnings VS Forward Price EarningsAMZN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as AMZN.
AMZN's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 56.48
EV/EBITDA 21.09
AMZN Per share dataAMZN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

AMZN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AMZN has a very decent profitability rating, which may justify a higher PE ratio.
AMZN's earnings are expected to grow with 38.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)2.1
EPS Next 2Y47.51%
EPS Next 3Y38.64%

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0

5. Dividend

5.1 Amount

No dividends for AMZN!.
Industry RankSector Rank
Dividend Yield N/A

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AMAZON.COM INC

NASDAQ:AMZN (1/21/2025, 8:00:00 PM)

After market: 231.41 +0.7 (+0.3%)

230.71

+4.77 (+2.11%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)10-31 2024-10-31/amc
Earnings (Next)01-30 2025-01-30/amc
Inst Owners64.13%
Inst Owner Change-0.52%
Ins Owners8.85%
Ins Owner Change-2%
Market Cap2425.92B
Analysts84.1
Price Target243.71 (5.63%)
Short Float %0.88%
Short Ratio2.08
Dividend
Industry RankSector 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)21.45%
Min EPS beat(2)20.18%
Max EPS beat(2)22.71%
EPS beat(4)4
Avg EPS beat(4)20.15%
Min EPS beat(4)15.6%
Max EPS beat(4)22.71%
EPS beat(8)8
Avg EPS beat(8)37.96%
EPS beat(12)10
Avg EPS beat(12)29.11%
EPS beat(16)13
Avg EPS beat(16)30.65%
Revenue beat(2)0
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-0.91%
Revenue beat(4)1
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.25%
Revenue beat(8)4
Avg Revenue beat(8)-0.52%
Revenue beat(12)4
Avg Revenue beat(12)-0.88%
Revenue beat(16)6
Avg Revenue beat(16)-0.77%
PT rev (1m)2.51%
PT rev (3m)9.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)18.27%
EPS NY rev (1m)0%
EPS NY rev (3m)8.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.38%
Valuation
Industry RankSector Rank
PE 49.4
Fwd PE 36.56
P/S 3.91
P/FCF 56.48
P/OCF 21.52
P/B 9.36
P/tB 10.28
EV/EBITDA 21.09
EPS(TTM)4.67
EY2.02%
EPS(NY)6.31
Fwd EY2.74%
FCF(TTM)4.08
FCFY1.77%
OCF(TTM)10.72
OCFY4.65%
SpS58.98
BVpS24.65
TBVpS22.45
PEG (NY)0.61
PEG (5Y)2.1
Profitability
Industry RankSector Rank
ROA 8.53%
ROE 19.24%
ROCE 14.32%
ROIC 11.6%
ROICexc 14.65%
ROICexgc 15.74%
OM 9.77%
PM (TTM) 8.04%
GM 48.41%
FCFM 6.93%
ROA(3y)4.37%
ROA(5y)4.98%
ROE(3y)12.45%
ROE(5y)15.77%
ROIC(3y)6.3%
ROIC(5y)7.39%
ROICexc(3y)8.75%
ROICexc(5y)11.45%
ROICexgc(3y)9.83%
ROICexgc(5y)13.68%
ROCE(3y)7.82%
ROCE(5y)9.16%
ROICexcg growth 3Y-15.77%
ROICexcg growth 5Y-16.12%
ROICexc growth 3Y-13.45%
ROICexc growth 5Y-10.63%
OM growth 3Y2.68%
OM growth 5Y3.78%
PM growth 3Y-1.42%
PM growth 5Y4.12%
GM growth 3Y5.89%
GM growth 5Y3.14%
F-Score7
Asset Turnover1.06
Health
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF 1.84
Debt/EBITDA 0.64
Cap/Depr 136.81%
Cap/Sales 11.25%
Interest Coverage 24.24
Cash Conversion 101.01%
Profit Quality 86.13%
Current Ratio 1.09
Quick Ratio 0.87
Altman-Z 6.18
F-Score7
WACC9.02%
ROIC/WACC1.29
Cap/Depr(3y)146.07%
Cap/Depr(5y)134.91%
Cap/Sales(3y)11.52%
Cap/Sales(5y)10.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)117.21%
EPS 3Y11.56%
EPS 5Y23.57%
EPS Q2Q%52.13%
EPS Next Y80.57%
EPS Next 2Y47.51%
EPS Next 3Y38.64%
EPS Next 5Y30.16%
Revenue 1Y (TTM)11.93%
Revenue growth 3Y14.19%
Revenue growth 5Y19.8%
Sales Q2Q%11.04%
Revenue Next Year11.68%
Revenue Next 2Y11.22%
Revenue Next 3Y11.04%
Revenue Next 5Y10.51%
EBIT growth 1Y124.64%
EBIT growth 3Y17.25%
EBIT growth 5Y24.34%
EBIT Next Year311.74%
EBIT Next 3Y79.04%
EBIT Next 5Y47.99%
FCF growth 1Y263.18%
FCF growth 3Y7.51%
FCF growth 5Y13.25%
OCF growth 1Y184.15%
OCF growth 3Y8.74%
OCF growth 5Y22.56%