Overall AMZN gets a fundamental rating of 6 out of 10. We evaluated AMZN against 30 industry peers in the Broadline Retail industry. While AMZN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AMZN is valued quite expensive, but it does show an excellent growth.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
Of the past 5 years AMZN 4 years were profitable.
In the past 5 years AMZN always reported a positive cash flow from operatings.

1.2 Ratios

The Return On Assets of AMZN (10.51%) is better than 90.00% of its industry peers.
AMZN has a better Return On Equity (20.69%) than 83.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.98%, AMZN is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
AMZN had an Average Return On Invested Capital over the past 3 years of 8.31%. This is in line with the industry average of 9.28%.
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's Profit Margin of 11.06% is amongst the best of the industry. AMZN outperforms 86.67% of its industry peers.
AMZN's Profit Margin has improved in the last couple of years.
The Operating Margin of AMZN (11.02%) is better than 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.
AMZN's Gross Margin has improved in the last couple of years.

		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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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.
The number of shares outstanding for AMZN has been increased compared to 1 year ago.
Compared to 5 years ago, AMZN has more shares outstanding
The debt/assets ratio for AMZN has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 6.09 indicates that AMZN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.09, AMZN belongs to the best of the industry, outperforming 90.00% 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.
The Debt to FCF ratio of AMZN (4.81) is comparable to the rest of the industry.
AMZN has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
AMZN's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. AMZN outperforms 76.67% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.14
Debt/FCF	4.81
Altman-Z	6.09

ROIC/WACC1.36

WACC8.84%

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.
AMZN has a Quick Ratio of 1.01. 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 0.80, AMZN is not doing good in the industry: 76.67% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.01
Quick Ratio	0.8

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 51.61% over the past year.
AMZN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.89% yearly.
AMZN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.48%.
The Revenue has been growing by 17.86% on average over the past years. This is quite good.

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 20.82% yearly.
AMZN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.20% yearly.

EPS Next Y31.73%

EPS Next 2Y21.07%

EPS Next 3Y21.22%

EPS Next 5Y20.82%

Revenue Next Year12.08%

Revenue Next 2Y11.7%

Revenue Next 3Y11.5%

Revenue Next 5Y11.2%

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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 34.14, which means the current valuation is very expensive for AMZN.
AMZN's Price/Earnings ratio is in line with the industry average.
AMZN is valuated rather expensively when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 29.82, the valuation of AMZN can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as AMZN.
AMZN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	34.14
Fwd PE	29.82

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 the industry average as 63.33% of the companies are valued more cheaply.

		Industry Rank	Sector Rank
P/FCF	244.71
EV/EBITDA	18.3

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.
AMZN's earnings are expected to grow with 21.22% in the coming years. This may justify a more expensive valuation.