AMAZON.COM INC - CDR (AMZN.CA) Stock Fundamental Analysis
TSX:AMZN - Toronto Stock Exchange - CA02315E1051 - Currency: CAD
AMZN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 3 industry peers in the Broadline Retail industry. While AMZN has a great profitability rating, there are some minor concerns on its financial health. AMZN has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings could make AMZN a good candidate for value and growth investing.
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.
1.2 Ratios
AMZN's Return On Assets of 9.48% is fine compared to the rest of the industry. AMZN outperforms 75.00% of its industry peers.
With a decent Return On Equity value of 20.72%, AMZN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.89%, AMZN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AMZN is below the industry average of 11.32%.
The 3 year average ROIC (8.32%) for AMZN is below the current ROIC(12.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.48% | ||
| ROE | 20.72% | ||
| ROIC | 12.89% |
ROA(3y)4.89%
ROA(5y)5.85%
ROE(3y)11.31%
ROE(5y)16.18%
ROIC(3y)8.32%
ROIC(5y)8.45%
1.3 Margins
AMZN's Profit Margin of 9.29% is fine compared to the rest of the industry. AMZN outperforms 75.00% of its industry peers.
AMZN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.75%, AMZN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
AMZN's Operating Margin has improved in the last couple of years.
AMZN has a Gross Margin of 48.85%. This is amongst the best in the industry. AMZN outperforms 100.00% of its industry peers.
AMZN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.75% | ||
| PM (TTM) | 9.29% | ||
| GM | 48.85% |
OM growth 3Y26.63%
OM growth 5Y15.71%
PM growth 3Y9.36%
PM growth 5Y17.59%
GM growth 3Y5.14%
GM growth 5Y3.57%
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.
AMZN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AMZN has been increased compared to 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 2.13 indicates that AMZN is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.13, AMZN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
AMZN has a debt to FCF ratio of 2.31. This is a good value and a sign of high solvency as AMZN would need 2.31 years to pay back of all of its debts.
AMZN has a better Debt to FCF ratio (2.31) than 100.00% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that AMZN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, AMZN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 2.13 |
ROIC/WACC1.33
WACC9.69%
2.3 Liquidity
A Current Ratio of 1.06 indicates that AMZN should not have too much problems paying its short term obligations.
AMZN has a Current ratio of 1.06. This is in the lower half of the industry: AMZN underperforms 75.00% of its industry peers.
A Quick Ratio of 0.87 indicates that AMZN may have some problems paying its short term obligations.
AMZN has a Quick ratio (0.87) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
AMZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 90.69%, which is quite impressive.
The Earnings Per Share has been growing by 36.89% on average over the past years. This is a very strong growth
Looking at the last year, AMZN shows a quite strong growth in Revenue. The Revenue has grown by 10.99% in the last year.
Measured over the past years, AMZN shows a quite strong growth in Revenue. The Revenue has been growing by 17.86% on average per year.
EPS 1Y (TTM)90.69%
EPS 3Y37.19%
EPS 5Y36.89%
EPS Q2Q%86%
Revenue 1Y (TTM)10.99%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%10.49%
3.2 Future
The Earnings Per Share is expected to grow by 19.78% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.12% on average over the next years. This is quite good.
EPS Next Y16.6%
EPS Next 2Y18.35%
EPS Next 3Y20.6%
EPS Next 5Y19.78%
Revenue Next Year9.54%
Revenue Next 2Y9.85%
Revenue Next 3Y9.96%
Revenue Next 5Y10.12%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 3.45, the valuation of AMZN can be described as very cheap.
Based on the Price/Earnings ratio, AMZN is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of AMZN to the average of the S&P500 Index (26.93), we can say AMZN is valued rather cheaply.
AMZN is valuated cheaply with a Price/Forward Earnings ratio of 2.96.
100.00% of the companies in the same industry are more expensive than AMZN, based on the Price/Forward Earnings ratio.
AMZN is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.45 | ||
| Fwd PE | 2.96 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than AMZN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AMZN is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.14 | ||
| EV/EBITDA | 1.18 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of AMZN may justify a higher PE ratio.
AMZN's earnings are expected to grow with 20.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)0.09
EPS Next 2Y18.35%
EPS Next 3Y20.6%
5. Dividend
5.1 Amount
No dividends for AMZN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:AMZN (8/14/2025, 7:00:00 PM)
27.06
+0.64 (+2.42%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners65.25%
Inst Owner ChangeN/A
Ins Owners8.6%
Ins Owner ChangeN/A
Market Cap286.77B
Analysts84.1
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.37%
Min EPS beat(2)22.03%
Max EPS beat(2)22.71%
EPS beat(4)4
Avg EPS beat(4)20.13%
Min EPS beat(4)15.6%
Max EPS beat(4)22.71%
EPS beat(8)8
Avg EPS beat(8)35.74%
EPS beat(12)10
Avg EPS beat(12)26.01%
EPS beat(16)13
Avg EPS beat(16)26.34%
Revenue beat(2)0
Avg Revenue beat(2)-1.31%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-0.91%
Revenue beat(4)0
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)-0.91%
Revenue beat(8)3
Avg Revenue beat(8)-0.81%
Revenue beat(12)4
Avg Revenue beat(12)-0.85%
Revenue beat(16)5
Avg Revenue beat(16)-1.05%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.45 | ||
| Fwd PE | 2.96 | ||
| P/S | 0.32 | ||
| P/FCF | 6.14 | ||
| P/OCF | 1.74 | ||
| P/B | 0.71 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 1.18 |
EPS(TTM)7.85
EY29.01%
EPS(NY)9.15
Fwd EY33.83%
FCF(TTM)4.4
FCFY16.28%
OCF(TTM)15.52
OCFY57.36%
SpS85.46
BVpS38.31
TBVpS35.22
PEG (NY)0.21
PEG (5Y)0.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.48% | ||
| ROE | 20.72% | ||
| ROCE | 15.4% | ||
| ROIC | 12.89% | ||
| ROICexc | 16.68% | ||
| ROICexgc | 17.88% | ||
| OM | 10.75% | ||
| PM (TTM) | 9.29% | ||
| GM | 48.85% | ||
| FCFM | 5.15% |
ROA(3y)4.89%
ROA(5y)5.85%
ROE(3y)11.31%
ROE(5y)16.18%
ROIC(3y)8.32%
ROIC(5y)8.45%
ROICexc(3y)10.81%
ROICexc(5y)12.21%
ROICexgc(3y)12.02%
ROICexgc(5y)13.98%
ROCE(3y)9.97%
ROCE(5y)10.12%
ROICexcg growth 3Y12.8%
ROICexcg growth 5Y-0.82%
ROICexc growth 3Y13.63%
ROICexc growth 5Y2.45%
OM growth 3Y26.63%
OM growth 5Y15.71%
PM growth 3Y9.36%
PM growth 5Y17.59%
GM growth 3Y5.14%
GM growth 5Y3.57%
F-Score7
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.31 | ||
| Debt/EBITDA | 0.57 | ||
| Cap/Depr | 157.21% | ||
| Cap/Sales | 13.01% | ||
| Interest Coverage | 29.02 | ||
| Cash Conversion | 95.46% | ||
| Profit Quality | 55.49% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 2.13 |
F-Score7
WACC9.69%
ROIC/WACC1.33
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)90.69%
EPS 3Y37.19%
EPS 5Y36.89%
EPS Q2Q%86%
EPS Next Y16.6%
EPS Next 2Y18.35%
EPS Next 3Y20.6%
EPS Next 5Y19.78%
Revenue 1Y (TTM)10.99%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%10.49%
Revenue Next Year9.54%
Revenue Next 2Y9.85%
Revenue Next 3Y9.96%
Revenue Next 5Y10.12%
EBIT growth 1Y86.13%
EBIT growth 3Y40.22%
EBIT growth 5Y36.38%
EBIT Next Year150.22%
EBIT Next 3Y51.56%
EBIT Next 5Y32.24%
FCF growth 1Y2.05%
FCF growth 3YN/A
FCF growth 5Y8.71%
OCF growth 1Y36.41%
OCF growth 3Y35.74%
OCF growth 5Y24.65%