AMAZON.COM INC (AMZN)
US0231351067 - Common Stock
AMZN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 33 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.
In the past year AMZN had a positive cash flow from operations.
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
The Return On Assets of AMZN (7.10%) is better than 72.73% of its industry peers.
AMZN's Return On Equity of 17.39% is fine compared to the rest of the industry. AMZN outperforms 72.73% of its industry peers.
With a decent Return On Invested Capital value of 10.16%, AMZN is doing good in the industry, outperforming 75.76% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AMZN is significantly below the industry average of 11.54%.
The last Return On Invested Capital (10.16%) for AMZN is above the 3 year average (6.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.1% | ||
| ROE | 17.39% | ||
| ROIC | 10.16% |
ROA(3y)4.37%
ROA(5y)4.98%
ROE(3y)12.45%
ROE(5y)15.77%
ROIC(3y)6.24%
ROIC(5y)7.36%
1.3 Margins
Looking at the Profit Margin, with a value of 6.38%, AMZN is in the better half of the industry, outperforming 72.73% 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 8.02%. This is in the better half of the industry: AMZN outperforms 69.70% of its industry peers.
AMZN's Operating Margin has improved in the last couple of years.
AMZN's Gross Margin of 47.59% is fine compared to the rest of the industry. AMZN outperforms 63.64% of its industry peers.
AMZN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.02% | ||
| PM (TTM) | 6.38% | ||
| GM | 47.59% |
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%
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.
The debt/assets ratio for AMZN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.46 indicates that AMZN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.46, AMZN is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
The Debt to FCF ratio of AMZN is 1.81, which is an excellent value as it means it would take AMZN, only 1.81 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AMZN (1.81) is better than 69.70% of its industry peers.
AMZN has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
AMZN has a Debt to Equity ratio (0.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.81 | ||
| Altman-Z | 5.46 |
ROIC/WACC1
WACC10.15%
2.3 Liquidity
A Current Ratio of 1.07 indicates that AMZN should not have too much problems paying its short term obligations.
AMZN has a worse Current ratio (1.07) than 81.82% of its industry peers.
A Quick Ratio of 0.87 indicates that AMZN may have some problems paying its short term obligations.
With a Quick ratio value of 0.87, AMZN is not doing good in the industry: 69.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 308.79% over the past year.
AMZN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.57% yearly.
AMZN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.54%.
AMZN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.80% yearly.
EPS 1Y (TTM)308.79%
EPS 3Y11.56%
EPS 5Y23.57%
EPS growth Q2Q264.52%
Revenue 1Y (TTM)12.54%
Revenue growth 3Y14.19%
Revenue growth 5Y19.8%
Revenue growth Q2Q12.53%
3.2 Future
AMZN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.67% yearly.
The Revenue is expected to grow by 10.91% on average over the next years. This is quite good.
EPS Next Y45.19%
EPS Next 2Y36.46%
EPS Next 3Y33.53%
EPS Next 5Y30.67%
Revenue Next Year12.33%
Revenue Next 2Y11.89%
Revenue Next 3Y11.41%
Revenue Next 5Y10.91%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
The Price/Earnings ratio is 50.29, 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 rather expensive valuation when compared to the S&P500 average which is at 28.56.
AMZN is valuated quite expensively with a Price/Forward Earnings ratio of 34.64.
AMZN's Price/Forward Earnings is on the same level as the industry average.
AMZN is valuated expensively when we compare the Price/Forward Earnings ratio to 20.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.29 | ||
| Fwd PE | 34.64 |
4.2 Price Multiples
AMZN's Enterprise Value to EBITDA is on the same level as the industry average.
AMZN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.5 | ||
| EV/EBITDA | 19.9 |
4.3 Compensation for Growth
AMZN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 33.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.11
PEG (5Y)2.13
EPS Next 2Y36.46%
EPS Next 3Y33.53%
5. Dividend
5.1 Amount
AMZN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AMAZON.COM INC
NASDAQ:AMZN (5/14/2024, 7:19:53 PM)
Premarket: 186.82 -0.25 (-0.13%)187.07
+0.5 (+0.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1942.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.29 | ||
| Fwd PE | 34.64 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.11
PEG (5Y)2.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.1% | ||
| ROE | 17.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.02% | ||
| PM (TTM) | 6.38% | ||
| GM | 47.59% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)308.79%
EPS 3Y11.56%
EPS 5Y
EPS growth Q2Q
EPS Next Y45.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.54%
Revenue growth 3Y14.19%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y