AMAZON.COM INC (AMZN) Stock Fundamental Analysis
USA - NASDAQ:AMZN - US0231351067 - Common Stock
220.69 USD
+3.55 (+1.63%)
221.3 USD
+0.61 (+0.28%)
AMZN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 30 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 expensively, but it does show have an excellent growth rating.
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
With an excellent Return On Assets value of 10.51%, AMZN belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
The Return On Equity of AMZN (20.69%) is better than 83.33% of its industry peers.
With a decent Return On Invested Capital value of 11.98%, AMZN is doing good in the industry, outperforming 73.33% 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 10.17%.
The 3 year average ROIC (8.31%) for AMZN is below the current ROIC(11.98%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 11.06%, AMZN belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
In the last couple of years the Profit Margin of AMZN has grown nicely.
Looking at the Operating Margin, with a value of 11.02%, AMZN is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
AMZN's Operating Margin has improved in the last couple of years.
AMZN's Gross Margin of 50.05% is fine compared to the rest of the industry. AMZN outperforms 70.00% of its industry peers.
In the last couple of years the Gross Margin of AMZN has grown nicely.
| 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%
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
Compared to 5 years ago, AMZN has more shares outstanding
AMZN has a better debt/assets ratio than last year.
2.2 Solvency
AMZN has an Altman-Z score of 5.62. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
AMZN's Altman-Z score of 5.62 is amongst the best of the industry. AMZN outperforms 86.67% of its industry peers.
AMZN has a debt to FCF ratio of 4.81. This is a neutral value as AMZN would need 4.81 years to pay back of all of its debts.
With a Debt to FCF ratio value of 4.81, AMZN perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that AMZN is not too dependend on debt financing.
AMZN has a Debt to Equity ratio of 0.14. This is in the better half of the industry: AMZN outperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 4.81 | ||
| Altman-Z | 5.62 |
ROIC/WACC1.39
WACC8.63%
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.
A Quick Ratio of 0.80 indicates that AMZN may have some problems paying its short term obligations.
The Quick ratio of AMZN (0.80) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.61% 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.
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
The Earnings Per Share is expected to grow by 20.45% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.04% on average over the next years. This is quite good.
EPS Next Y29.2%
EPS Next 2Y20.12%
EPS Next 3Y20.94%
EPS Next 5Y20.45%
Revenue Next Year11.74%
Revenue Next 2Y11.33%
Revenue Next 3Y11.2%
Revenue Next 5Y11.04%
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 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 31.17, which means the current valuation is very expensive for AMZN.
The rest of the industry has a similar Price/Earnings ratio as AMZN.
The average S&P500 Price/Earnings ratio is at 25.45. AMZN is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 27.66, 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.
AMZN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.17 | ||
| Fwd PE | 27.66 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AMZN.
Based on the Price/Free Cash Flow ratio, AMZN is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 222.88 | ||
| EV/EBITDA | 16.25 |
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 20.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.07
PEG (5Y)0.84
EPS Next 2Y20.12%
EPS Next 3Y20.94%
5. Dividend
5.1 Amount
No dividends for AMZN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
220.69
+3.55 (+1.63%)
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-3%
Market Cap2.35T
Revenue(TTM)691.33B
Net Income(TTM)76.48B
Analysts85.13
Price Target272.31 (23.39%)
Short Float %0.72%
Short Ratio1.42
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)22.74%
Min EPS beat(2)21.56%
Max EPS beat(2)23.92%
EPS beat(4)4
Avg EPS beat(4)20.49%
Min EPS beat(4)14.44%
Max EPS beat(4)23.92%
EPS beat(8)8
Avg EPS beat(8)20.32%
EPS beat(12)12
Avg EPS beat(12)32.13%
EPS beat(16)14
Avg EPS beat(16)26.96%
Revenue beat(2)1
Avg Revenue beat(2)0.4%
Min Revenue beat(2)-0.63%
Max Revenue beat(2)1.44%
Revenue beat(4)1
Avg Revenue beat(4)-0.61%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)1.44%
Revenue beat(8)2
Avg Revenue beat(8)-0.86%
Revenue beat(12)5
Avg Revenue beat(12)-0.55%
Revenue beat(16)5
Avg Revenue beat(16)-0.81%
PT rev (1m)1.11%
PT rev (3m)2.63%
EPS NQ rev (1m)4.74%
EPS NQ rev (3m)5.28%
EPS NY rev (1m)4.77%
EPS NY rev (3m)13.02%
Revenue NQ rev (1m)1.56%
Revenue NQ rev (3m)1.52%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.17 | ||
| Fwd PE | 27.66 | ||
| P/S | 3.4 | ||
| P/FCF | 222.88 | ||
| P/OCF | 18.01 | ||
| P/B | 6.37 | ||
| P/tB | 6.8 | ||
| EV/EBITDA | 16.25 |
EPS(TTM)7.08
EY3.21%
EPS(NY)7.98
Fwd EY3.62%
FCF(TTM)0.99
FCFY0.45%
OCF(TTM)12.25
OCFY5.55%
SpS64.82
BVpS34.66
TBVpS32.48
PEG (NY)1.07
PEG (5Y)0.84
Graham Number74.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.51% | ||
| ROE | 20.69% | ||
| ROCE | 14.3% | ||
| ROIC | 11.98% | ||
| ROICexc | 14.56% | ||
| ROICexgc | 15.37% | ||
| OM | 11.02% | ||
| PM (TTM) | 11.06% | ||
| GM | 50.05% | ||
| FCFM | 1.53% |
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%
ROICexgc growth 3Y12.76%
ROICexgc 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 Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 4.81 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 194.02% | ||
| Cap/Sales | 17.38% | ||
| Interest Coverage | 35.33 | ||
| Cash Conversion | 94.62% | ||
| Profit Quality | 13.81% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 5.62 |
F-Score6
WACC8.63%
ROIC/WACC1.39
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)51.61%
EPS 3Y37.19%
EPS 5Y36.89%
EPS Q2Q%36.36%
EPS Next Y29.2%
EPS Next 2Y20.12%
EPS Next 3Y20.94%
EPS Next 5Y20.45%
Revenue 1Y (TTM)11.48%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%13.4%
Revenue Next Year11.74%
Revenue Next 2Y11.33%
Revenue Next 3Y11.2%
Revenue Next 5Y11.04%
EBIT growth 1Y25.75%
EBIT growth 3Y40.17%
EBIT growth 5Y36.35%
EBIT Next Year150.72%
EBIT Next 3Y52.77%
EBIT Next 5Y39.32%
FCF growth 1Y-37.59%
FCF growth 3YN/A
FCF growth 5Y8.71%
OCF growth 1Y82.39%
OCF growth 3Y35.74%
OCF growth 5Y24.65%
AMAZON.COM INC / AMZN FAQ
Can you provide the ChartMill fundamental rating for AMAZON.COM INC?
ChartMill assigns a fundamental rating of 6 / 10 to AMZN.
Can you provide the valuation status for AMAZON.COM INC?
ChartMill assigns a valuation rating of 3 / 10 to AMAZON.COM INC (AMZN). This can be considered as Overvalued.
What is the profitability of AMZN stock?
AMAZON.COM INC (AMZN) has a profitability rating of 8 / 10.
What are the PE and PB ratios of AMAZON.COM INC (AMZN) stock?
The Price/Earnings (PE) ratio for AMAZON.COM INC (AMZN) is 31.17 and the Price/Book (PB) ratio is 6.37.