AMAZON.COM INC (AMZN) Stock Fundamental Analysis
NASDAQ:AMZN - Nasdaq - US0231351067 - Common Stock - Currency: USD
Taking everything into account, AMZN scores 6 out of 10 in our fundamental rating. AMZN was compared to 28 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. These ratings would make AMZN suitable for growth investing!
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
AMZN's Return On Assets of 10.25% is amongst the best of the industry. AMZN outperforms 82.14% of its industry peers.
AMZN has a Return On Equity of 21.56%. This is amongst the best in the industry. AMZN outperforms 82.14% of its industry peers.
AMZN has a Return On Invested Capital of 12.86%. This is in the better half of the industry: AMZN outperforms 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AMZN is below the industry average of 11.59%.
The last Return On Invested Capital (12.86%) for AMZN is above the 3 year average (8.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.25% | ||
| ROE | 21.56% | ||
| ROIC | 12.86% |
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
AMZN's Profit Margin of 10.14% is amongst the best of the industry. AMZN outperforms 85.71% of its industry peers.
AMZN's Profit Margin has improved in the last couple of years.
AMZN has a better Operating Margin (11.02%) than 78.57% of its industry peers.
AMZN's Operating Margin has improved in the last couple of years.
AMZN has a Gross Margin of 49.16%. This is in the better half of the industry: AMZN outperforms 67.86% 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) | 10.14% | ||
| GM | 49.16% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AMZN is still creating some value.
Compared to 1 year ago, AMZN has more shares outstanding
The number of shares outstanding for AMZN has been increased compared to 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 5.95. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.95, AMZN belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
AMZN has a debt to FCF ratio of 2.56. This is a good value and a sign of high solvency as AMZN would need 2.56 years to pay back of all of its debts.
AMZN's Debt to FCF ratio of 2.56 is fine compared to the rest of the industry. AMZN outperforms 64.29% of its industry peers.
AMZN has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
AMZN's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. AMZN outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.56 | ||
| Altman-Z | 5.95 |
ROIC/WACC1.41
WACC9.15%
2.3 Liquidity
AMZN has a Current Ratio of 1.05. 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 1.05. This is amonst the worse of the industry: AMZN underperforms 85.71% of its industry peers.
A Quick Ratio of 0.84 indicates that AMZN may have some problems paying its short term obligations.
AMZN has a Quick ratio of 0.84. This is in the lower half of the industry: AMZN underperforms 78.57% of its industry peers.
AMZN does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
AMZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 71.99%, which is quite impressive.
AMZN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.89% yearly.
The Revenue has grown by 10.08% in the past year. This is quite good.
The Revenue has been growing by 17.86% on average over the past years. This is quite good.
EPS 1Y (TTM)71.99%
EPS 3Y37.19%
EPS 5Y36.89%
EPS Q2Q%62.24%
Revenue 1Y (TTM)10.08%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%8.62%
3.2 Future
The Earnings Per Share is expected to grow by 17.92% on average over the next years. This is quite good.
Based on estimates for the next years, AMZN will show a quite strong growth in Revenue. The Revenue will grow by 9.64% on average per year.
EPS Next Y13.81%
EPS Next 2Y15.56%
EPS Next 3Y17.87%
EPS Next 5Y17.92%
Revenue Next Year8.91%
Revenue Next 2Y9.23%
Revenue Next 3Y9.43%
Revenue Next 5Y9.64%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 35.72, the valuation of AMZN can be described as expensive.
60.71% of the companies in the same industry are more expensive than AMZN, based on the Price/Earnings ratio.
AMZN is valuated rather expensively when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
AMZN is valuated quite expensively with a Price/Forward Earnings ratio of 29.69.
The rest of the industry has a similar Price/Forward Earnings ratio as AMZN.
When comparing the Price/Forward Earnings ratio of AMZN to the average of the S&P500 Index (21.60), we can say AMZN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.72 | ||
| Fwd PE | 29.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMZN is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, AMZN is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 111.88 | ||
| EV/EBITDA | 17.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AMZN may justify a higher PE ratio.
A more expensive valuation may be justified as AMZN's earnings are expected to grow with 17.87% in the coming years.
PEG (NY)2.59
PEG (5Y)0.97
EPS Next 2Y15.56%
EPS Next 3Y17.87%
5. Dividend
5.1 Amount
AMZN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:AMZN (7/1/2025, 10:01:09 AM)
219.305
-0.08 (-0.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners65.26%
Inst Owner Change1.25%
Ins Owners8.57%
Ins Owner Change-0.1%
Market Cap2328.22B
Analysts84.81
Price Target246.66 (12.47%)
Short Float %0.64%
Short Ratio1.39
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)18.24%
Min EPS beat(2)14.44%
Max EPS beat(2)22.03%
EPS beat(4)4
Avg EPS beat(4)19.84%
Min EPS beat(4)14.44%
Max EPS beat(4)22.71%
EPS beat(8)8
Avg EPS beat(8)32.11%
EPS beat(12)11
Avg EPS beat(12)28.33%
EPS beat(16)13
Avg EPS beat(16)23.35%
Revenue beat(2)0
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-1.56%
Revenue beat(4)0
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)-0.91%
Revenue beat(8)2
Avg Revenue beat(8)-1.04%
Revenue beat(12)4
Avg Revenue beat(12)-0.82%
Revenue beat(16)4
Avg Revenue beat(16)-1.26%
PT rev (1m)0.1%
PT rev (3m)-8.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.03%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-2.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.72 | ||
| Fwd PE | 29.69 | ||
| P/S | 3.58 | ||
| P/FCF | 111.88 | ||
| P/OCF | 20.44 | ||
| P/B | 7.61 | ||
| P/tB | 8.23 | ||
| EV/EBITDA | 17.78 |
EPS(TTM)6.14
EY2.8%
EPS(NY)7.39
Fwd EY3.37%
FCF(TTM)1.96
FCFY0.89%
OCF(TTM)10.73
OCFY4.89%
SpS61.26
BVpS28.81
TBVpS26.64
PEG (NY)2.59
PEG (5Y)0.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.25% | ||
| ROE | 21.56% | ||
| ROCE | 15.35% | ||
| ROIC | 12.86% | ||
| ROICexc | 16.12% | ||
| ROICexgc | 17.19% | ||
| OM | 11.02% | ||
| PM (TTM) | 10.14% | ||
| GM | 49.16% | ||
| FCFM | 3.2% |
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%
ROICexcg growth 3Y12.76%
ROICexcg 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 Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.56 | ||
| Debt/EBITDA | 0.42 | ||
| Cap/Depr | 168.12% | ||
| Cap/Sales | 14.32% | ||
| Interest Coverage | 30.91 | ||
| Cash Conversion | 89.64% | ||
| Profit Quality | 31.56% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 5.95 |
F-Score6
WACC9.15%
ROIC/WACC1.41
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)71.99%
EPS 3Y37.19%
EPS 5Y36.89%
EPS Q2Q%62.24%
EPS Next Y13.81%
EPS Next 2Y15.56%
EPS Next 3Y17.87%
EPS Next 5Y17.92%
Revenue 1Y (TTM)10.08%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%8.62%
Revenue Next Year8.91%
Revenue Next 2Y9.23%
Revenue Next 3Y9.43%
Revenue Next 5Y9.64%
EBIT growth 1Y51.29%
EBIT growth 3Y40.17%
EBIT growth 5Y36.35%
EBIT Next Year143.61%
EBIT Next 3Y51.65%
EBIT Next 5Y32.09%
FCF growth 1Y342.8%
FCF growth 3YN/A
FCF growth 5Y8.71%
OCF growth 1Y109.65%
OCF growth 3Y35.74%
OCF growth 5Y24.65%