AMAZON.COM INC (AMZN) Stock Fundamental Analysis
NASDAQ:AMZN - Nasdaq - US0231351067 - Common Stock - Currency: USD
Overall AMZN gets a fundamental rating of 6 out of 10. We evaluated AMZN against 28 industry peers in the Broadline Retail industry. AMZN scores excellent on profitability, but there are some minor concerns on its financial health. AMZN is valued quite expensively, but it does show have an excellent growth rating. These ratings could make AMZN a good candidate 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
The Return On Assets of AMZN (10.25%) is better than 82.14% of its industry peers.
The Return On Equity of AMZN (21.56%) is better than 82.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.86%, AMZN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AMZN is below the industry average of 11.59%.
The 3 year average ROIC (8.31%) for AMZN is below the current ROIC(12.86%), indicating increased profibility in the last year.
| 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 better Profit Margin (10.14%) than 85.71% of its industry peers.
In the last couple of years the Profit Margin of AMZN has grown nicely.
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.
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.
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
An Altman-Z score of 6.08 indicates that AMZN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.08, AMZN belongs to the top of the industry, outperforming 89.29% 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 64.29% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that AMZN is not too dependend on debt financing.
AMZN has a Debt to Equity ratio of 0.17. This is in the better half 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 | 6.08 |
ROIC/WACC1.4
WACC9.16%
2.3 Liquidity
A Current Ratio of 1.05 indicates that AMZN should not have too much problems paying its short term obligations.
The Current ratio of AMZN (1.05) is worse than 85.71% of its industry peers.
AMZN has a Quick Ratio of 1.05. This is a bad value and indicates that AMZN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.84, AMZN is not doing good in the industry: 78.57% 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
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.
Looking at the last year, AMZN shows a quite strong growth in Revenue. The Revenue has grown by 10.08% in the last year.
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)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
Based on estimates for the next years, AMZN will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.92% on average per year.
The Revenue is expected to grow by 9.64% on average over the next years. This is quite good.
EPS Next Y14.31%
EPS Next 2Y15.84%
EPS Next 3Y18.08%
EPS Next 5Y17.92%
Revenue Next Year9.02%
Revenue Next 2Y9.32%
Revenue Next 3Y9.51%
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.
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
Based on the Price/Earnings ratio of 37.34, the valuation of AMZN can be described as expensive.
Based on the Price/Earnings ratio, AMZN is valued a bit cheaper than 60.71% of the companies in the same industry.
AMZN is valuated rather expensively when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
AMZN is valuated quite expensively with a Price/Forward Earnings ratio of 30.90.
The rest of the industry has a similar Price/Forward Earnings ratio as AMZN.
AMZN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.34 | ||
| Fwd PE | 30.9 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AMZN.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMZN indicates a slightly more expensive valuation: AMZN is more expensive than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 116.97 | ||
| EV/EBITDA | 18.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AMZN has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AMZN's earnings are expected to grow with 18.08% in the coming years.
PEG (NY)2.61
PEG (5Y)1.01
EPS Next 2Y15.84%
EPS Next 3Y18.08%
5. Dividend
5.1 Amount
No dividends for AMZN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:AMZN (7/21/2025, 2:41:08 PM)
229.275
+3.15 (+1.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners65.26%
Inst Owner Change1.48%
Ins Owners8.57%
Ins Owner Change-1.69%
Market Cap2434.06B
Analysts84.81
Price Target252.23 (10.01%)
Short Float %0.73%
Short Ratio1.65
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)2.8%
PT rev (3m)-6.61%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)-7.3%
EPS NY rev (1m)0.44%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.34 | ||
| Fwd PE | 30.9 | ||
| P/S | 3.74 | ||
| P/FCF | 116.97 | ||
| P/OCF | 21.37 | ||
| P/B | 7.96 | ||
| P/tB | 8.61 | ||
| EV/EBITDA | 18.35 |
EPS(TTM)6.14
EY2.68%
EPS(NY)7.42
Fwd EY3.24%
FCF(TTM)1.96
FCFY0.85%
OCF(TTM)10.73
OCFY4.68%
SpS61.26
BVpS28.81
TBVpS26.64
PEG (NY)2.61
PEG (5Y)1.01
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 | 6.08 |
F-Score6
WACC9.16%
ROIC/WACC1.4
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 Y14.31%
EPS Next 2Y15.84%
EPS Next 3Y18.08%
EPS Next 5Y17.92%
Revenue 1Y (TTM)10.08%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%8.62%
Revenue Next Year9.02%
Revenue Next 2Y9.32%
Revenue Next 3Y9.51%
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%