AMAZON.COM INC - CDR (AMZN.CA) Stock Fundamental Analysis
TSX:AMZN - Toronto Stock Exchange - CA02315E1051 - Currency: CAD
Overall AMZN gets a fundamental rating of 6 out of 10. We evaluated AMZN against 3 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. An interesting combination arises when we look at growth and value: AMZN is growing strongly while it also seems undervalued. These ratings could make AMZN a good candidate for value and 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.
AMZN had a positive operating cash flow in each of the past 5 years.
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.
AMZN has a Return On Equity of 20.72%. This is in the better half of the industry: AMZN outperforms 75.00% of its industry peers.
AMZN has a Return On Invested Capital of 12.89%. This is in the better half of the industry: AMZN outperforms 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMZN is below the industry average of 11.29%.
The last Return On Invested Capital (12.89%) for AMZN is above the 3 year average (8.32%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 9.29%, AMZN is in the better half of the industry, outperforming 75.00% 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 10.75%. This is in the better half of the industry: AMZN outperforms 75.00% of its industry peers.
AMZN's Operating Margin has improved in the last couple of years.
AMZN has a better Gross Margin (48.85%) than 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
AMZN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, AMZN has an improved debt to assets ratio.
2.2 Solvency
AMZN has an Altman-Z score of 2.13. This is not the best score and indicates that AMZN is in the grey zone with still only limited risk for bankruptcy at the moment.
AMZN's Altman-Z score of 2.13 is fine compared to the rest of the industry. AMZN outperforms 75.00% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 2.31, AMZN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that AMZN is not too dependend on debt financing.
The Debt to Equity ratio of AMZN (0.24) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 2.13 |
ROIC/WACC1.33
WACC9.69%
2.3 Liquidity
AMZN has a Current Ratio of 1.06. This is a normal value and indicates that AMZN is financially healthy and should not expect problems in meeting 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.
AMZN has a Quick Ratio of 1.06. This is a bad value and indicates that AMZN is not financially healthy enough and could expect problems in meeting its short term obligations.
AMZN has a Quick ratio of 0.87. This is comparable to the rest of the industry: AMZN outperforms 50.00% of its industry peers.
| 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
AMZN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.99%.
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)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
AMZN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.78% yearly.
Based on estimates for the next years, AMZN will show a quite strong growth in Revenue. The Revenue will grow by 10.12% on average per year.
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.
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 3.10, which indicates a rather cheap valuation of AMZN.
Based on the Price/Earnings ratio, AMZN is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.35. AMZN is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 2.65, which indicates a rather cheap valuation of AMZN.
Based on the Price/Forward Earnings ratio, AMZN is valued cheaper than 100.00% of the companies in the same industry.
AMZN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.1 | ||
| Fwd PE | 2.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMZN is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
100.00% of the companies in the same industry are more expensive than AMZN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.52 | ||
| EV/EBITDA | 1.18 |
4.3 Compensation for Growth
AMZN's 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)0.19
PEG (5Y)0.08
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 (5/27/2025, 7:00:00 PM)
24.3
-2.12 (-8.02%)
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 Cap257.52B
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 | 3.1 | ||
| Fwd PE | 2.65 | ||
| P/S | 0.28 | ||
| P/FCF | 5.52 | ||
| P/OCF | 1.57 | ||
| P/B | 0.63 | ||
| P/tB | 0.69 | ||
| EV/EBITDA | 1.18 |
EPS(TTM)7.85
EY32.3%
EPS(NY)9.15
Fwd EY37.67%
FCF(TTM)4.4
FCFY18.12%
OCF(TTM)15.52
OCFY63.88%
SpS85.46
BVpS38.31
TBVpS35.22
PEG (NY)0.19
PEG (5Y)0.08
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%