239.8 USD
+5.46 (+2.33%)
We assign a fundamental rating of 6 out of 10 to AMZN. AMZN was compared to 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 expensive, but it does show an excellent growth.
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
- Looking at the Return On Assets, with a value of 10.51%, AMZN belongs to the top 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.
- AMZN has a better Return On Invested Capital (11.98%) than 80.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AMZN is in line with the industry average of 9.29%.
- 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.
- AMZN's Operating Margin of 11.02% is fine compared to the rest of the industry. AMZN outperforms 80.00% of its industry peers.
- AMZN's Operating Margin has improved in the last couple of years.
- The Gross Margin of AMZN (50.05%) is better than 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
- AMZN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
- Compared to 1 year ago, AMZN has an improved debt to assets ratio.
2.2 Solvency
- AMZN has an Altman-Z score of 5.93. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
- AMZN's Altman-Z score of 5.93 is amongst the best of the industry. AMZN outperforms 86.67% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 4.81, AMZN is in line with its industry, outperforming 60.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.14 indicates that AMZN is not too dependend on debt financing.
- The Debt to Equity ratio of AMZN (0.14) is better than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 4.81 | ||
| Altman-Z | 5.93 |
ROIC/WACC1.36
WACC8.82%
2.3 Liquidity
- A Current Ratio of 1.01 indicates that AMZN should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.01, AMZN is doing worse than 83.33% of the companies in the same industry.
- 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 76.67% 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.
- The Revenue has grown by 11.48% in the past year. This is quite good.
- AMZN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.86% yearly.
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 Y31.71%
EPS Next 2Y21.13%
EPS Next 3Y21.6%
EPS Next 5Y20.82%
Revenue Next Year12.08%
Revenue Next 2Y11.69%
Revenue Next 3Y11.49%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 33.87, AMZN can be considered very expensive at the moment.
- AMZN's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.30. AMZN is valued slightly more expensive when compared to this.
- The Price/Forward Earnings ratio is 29.55, which means the current valuation is very expensive for AMZN.
- AMZN's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of AMZN to the average of the S&P500 Index (24.32), we can say AMZN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.87 | ||
| Fwd PE | 29.55 |
4.2 Price Multiples
- AMZN's Enterprise Value to EBITDA is on the same level as the industry average.
- 63.33% of the companies in the same industry are cheaper than AMZN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 242.76 | ||
| EV/EBITDA | 17.63 |
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 21.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.07
PEG (5Y)0.92
EPS Next 2Y21.13%
EPS Next 3Y21.6%
5. Dividend
5.1 Amount
- AMZN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.
What is the valuation status of AMAZON.COM INC (AMZN) stock?
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 is the earnings growth outlook for AMAZON.COM INC?
The Earnings per Share (EPS) of AMAZON.COM INC (AMZN) is expected to grow by 31.71% in the next year.