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 31 industry peers in the Broadline Retail industry. While AMZN has a great profitability rating, there are some minor concerns on its financial health. AMZN shows excellent growth, but is valued quite expensive already. With these ratings, AMZN could be worth investigating further 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.
AMZN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AMZN has a Return On Assets of 10.25%. This is amongst the best in the industry. AMZN outperforms 83.87% of its industry peers.
Looking at the Return On Equity, with a value of 21.56%, AMZN belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
The Return On Invested Capital of AMZN (12.86%) is better than 77.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AMZN is below the industry average of 11.52%.
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 has a Profit Margin of 10.14%. This is amongst the best in the industry. AMZN outperforms 87.10% of its industry peers.
In the last couple of years the Profit Margin of AMZN has grown nicely.
The Operating Margin of AMZN (11.02%) is better than 80.65% of its industry peers.
In the last couple of years the Operating Margin of AMZN has grown nicely.
The Gross Margin of AMZN (49.16%) is better than 70.97% of its industry peers.
AMZN's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AMZN is creating some value.
AMZN has more shares outstanding than it did 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 5.70. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.70, AMZN belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
The Debt to FCF ratio of AMZN is 2.56, which is a good value as it means it would take AMZN, 2.56 years of fcf income to pay off all of its debts.
AMZN has a Debt to FCF ratio of 2.56. This is in the better half of the industry: AMZN outperforms 64.52% 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 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.56 | ||
| Altman-Z | 5.7 |
ROIC/WACC1.27
WACC10.11%
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.
The Current ratio of AMZN (1.05) is worse than 83.87% of its industry peers.
A Quick Ratio of 0.84 indicates that AMZN may have some problems paying its short term obligations.
With a Quick ratio value of 0.84, AMZN is not doing good in the industry: 74.19% of the companies in the same industry are doing better.
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
The Earnings Per Share has grown by an impressive 71.99% 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 10.08%.
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)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 20.25% on average over the next years. This is a very strong growth
Based on estimates for the next years, AMZN will show a quite strong growth in Revenue. The Revenue will grow by 9.85% on average per year.
EPS Next Y13.78%
EPS Next 2Y15.54%
EPS Next 3Y17.84%
EPS Next 5Y20.25%
Revenue Next Year8.89%
Revenue Next 2Y9.2%
Revenue Next 3Y9.41%
Revenue Next 5Y9.85%
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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 33.24, AMZN can be considered very expensive at the moment.
61.29% 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 26.60, which is the current average of the S&P500 Index.
AMZN is valuated quite expensively with a Price/Forward Earnings ratio of 27.64.
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 (22.43), we can say AMZN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.24 | ||
| Fwd PE | 27.64 |
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 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 104.07 | ||
| EV/EBITDA | 16.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AMZN does not grow enough to justify the current Price/Earnings ratio.
AMZN has an outstanding profitability rating, which may justify a higher PE ratio.
AMZN's earnings are expected to grow with 17.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.41
PEG (5Y)0.9
EPS Next 2Y15.54%
EPS Next 3Y17.84%
5. Dividend
5.1 Amount
No dividends for AMZN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
204.07
-2.09 (-1.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners65.25%
Inst Owner Change2.07%
Ins Owners8.6%
Ins Owner Change-0.25%
Market Cap2165.66B
Analysts84.05
Price Target246.42 (20.75%)
Short Float %0.68%
Short Ratio1.22
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)-8.76%
PT rev (3m)-2.75%
EPS NQ rev (1m)-7.51%
EPS NQ rev (3m)-7.64%
EPS NY rev (1m)-1.3%
EPS NY rev (3m)-2.42%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.24 | ||
| Fwd PE | 27.64 | ||
| P/S | 3.33 | ||
| P/FCF | 104.07 | ||
| P/OCF | 19.01 | ||
| P/B | 7.08 | ||
| P/tB | 7.66 | ||
| EV/EBITDA | 16.67 |
EPS(TTM)6.14
EY3.01%
EPS(NY)7.38
Fwd EY3.62%
FCF(TTM)1.96
FCFY0.96%
OCF(TTM)10.73
OCFY5.26%
SpS61.28
BVpS28.82
TBVpS26.65
PEG (NY)2.41
PEG (5Y)0.9
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 | 5.7 |
F-Score6
WACC10.11%
ROIC/WACC1.27
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 Y13.78%
EPS Next 2Y15.54%
EPS Next 3Y17.84%
EPS Next 5Y20.25%
Revenue 1Y (TTM)10.08%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%8.62%
Revenue Next Year8.89%
Revenue Next 2Y9.2%
Revenue Next 3Y9.41%
Revenue Next 5Y9.85%
EBIT growth 1Y51.29%
EBIT growth 3Y40.17%
EBIT growth 5Y36.35%
EBIT Next Year153.17%
EBIT Next 3Y52.92%
EBIT Next 5Y32.71%
FCF growth 1Y342.8%
FCF growth 3YN/A
FCF growth 5Y8.71%
OCF growth 1Y109.65%
OCF growth 3Y35.74%
OCF growth 5Y24.65%