AMAZON.COM INC (AMZN) Fundamental Analysis & Valuation
NASDAQ:AMZN • US0231351067
216.43 USD
+7.7 (+3.69%)
Last: Mar 4, 2026, 03:15 PM
This AMZN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall AMZN gets a fundamental rating of 5 out of 10. We evaluated AMZN against 30 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. AMZN shows excellent growth, but is valued quite expensive already.
1. AMZN Profitability Analysis
1.1 Basic Checks
- In the past year AMZN was profitable.
- In the past year AMZN had a positive cash flow from operations.
- 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 has a Return On Assets of 9.49%. This is amongst the best in the industry. AMZN outperforms 90.00% of its industry peers.
- Looking at the Return On Equity, with a value of 18.89%, AMZN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- With a decent Return On Invested Capital value of 11.12%, AMZN is doing good in the industry, outperforming 73.33% of the companies in the same industry.
- AMZN had an Average Return On Invested Capital over the past 3 years of 10.81%. This is in line with the industry average of 9.25%.
- The last Return On Invested Capital (11.12%) for AMZN is above the 3 year average (10.81%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.49% | ||
| ROE | 18.89% | ||
| ROIC | 11.12% |
ROA(3y)8.25%
ROA(5y)6.42%
ROE(3y)18.23%
ROE(5y)15.39%
ROIC(3y)10.81%
ROIC(5y)8.68%
1.3 Margins
- AMZN has a Profit Margin of 10.83%. This is amongst the best in the industry. AMZN outperforms 86.67% of its industry peers.
- In the last couple of years the Profit Margin of AMZN has grown nicely.
- With an excellent Operating Margin value of 11.16%, AMZN belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- AMZN's Operating Margin has improved in the last couple of years.
- The Gross Margin of AMZN (50.29%) is better than 70.00% of its industry peers.
- In the last couple of years the Gross Margin of AMZN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.16% | ||
| PM (TTM) | 10.83% | ||
| GM | 50.29% |
OM growth 3Y62.56%
OM growth 5Y13.47%
PM growth 3YN/A
PM growth 5Y14.42%
GM growth 3Y4.71%
GM growth 5Y4.91%
2. AMZN Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AMZN 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 4.95. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
- AMZN's Altman-Z score of 4.95 is fine compared to the rest of the industry. AMZN outperforms 80.00% of its industry peers.
- AMZN has a debt to FCF ratio of 8.53. This is a slightly negative value and a sign of low solvency as AMZN would need 8.53 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 8.53, AMZN perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.16 indicates that AMZN is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.16, AMZN is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 8.53 | ||
| Altman-Z | 4.95 |
ROIC/WACC1.24
WACC8.98%
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 worse Current ratio (1.05) than 80.00% 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.
- AMZN's Quick ratio of 0.88 is on the low side compared to the rest of the industry. AMZN is outperformed by 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.88 |
3. AMZN Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 29.66% over the past year.
- The Earnings Per Share has been growing by 27.98% 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 12.38% in the last year.
- AMZN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.18% yearly.
EPS 1Y (TTM)29.66%
EPS 3Y94.86%
EPS 5Y27.98%
EPS Q2Q%4.84%
Revenue 1Y (TTM)12.38%
Revenue growth 3Y11.73%
Revenue growth 5Y13.18%
Sales Q2Q%13.63%
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 19.30% on average per year.
- AMZN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.20% yearly.
EPS Next Y13.82%
EPS Next 2Y17.5%
EPS Next 3Y21.24%
EPS Next 5Y19.3%
Revenue Next Year12.61%
Revenue Next 2Y12.11%
Revenue Next 3Y12.19%
Revenue Next 5Y11.2%
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 stable.
4. AMZN Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 30.19 indicates a quite expensive valuation of AMZN.
- AMZN's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 26.83. AMZN is around the same levels.
- Based on the Price/Forward Earnings ratio of 26.52, the valuation of AMZN can be described as expensive.
- Based on the Price/Forward Earnings ratio, AMZN is valued a bit more expensive than 60.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.95, AMZN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.19 | ||
| Fwd PE | 26.52 |
4.2 Price Multiples
- AMZN's Enterprise Value to EBITDA ratio is in line with the industry average.
- 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 63.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 301.93 | ||
| EV/EBITDA | 14.73 |
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.
- AMZN's earnings are expected to grow with 21.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.18
PEG (5Y)1.08
EPS Next 2Y17.5%
EPS Next 3Y21.24%
5. AMZN Dividend Analysis
5.1 Amount
- AMZN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
AMZN Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:AMZN (3/4/2026, 3:15:10 PM)
216.43
+7.7 (+3.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners66.62%
Inst Owner Change2.74%
Ins Owners9.02%
Ins Owner Change-0.11%
Market Cap2.32T
Revenue(TTM)716.92B
Net Income(TTM)77.67B
Analysts84.21
Price Target284 (31.22%)
Short Float %0.89%
Short Ratio1.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1
Avg EPS beat(2)9.23%
Min EPS beat(2)-3.03%
Max EPS beat(2)21.49%
EPS beat(4)3
Avg EPS beat(4)14.23%
Min EPS beat(4)-3.03%
Max EPS beat(4)24.03%
EPS beat(8)7
Avg EPS beat(8)17.18%
EPS beat(12)11
Avg EPS beat(12)28.57%
EPS beat(16)13
Avg EPS beat(16)23.06%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)-0.66%
Revenue beat(4)1
Avg Revenue beat(4)-0.45%
Min Revenue beat(4)-1.56%
Max Revenue beat(4)1.43%
Revenue beat(8)1
Avg Revenue beat(8)-1.02%
Revenue beat(12)4
Avg Revenue beat(12)-0.69%
Revenue beat(16)5
Avg Revenue beat(16)-0.75%
PT rev (1m)-4.46%
PT rev (3m)-3.53%
EPS NQ rev (1m)-5.27%
EPS NQ rev (3m)-5.41%
EPS NY rev (1m)0.68%
EPS NY rev (3m)2.28%
Revenue NQ rev (1m)1.04%
Revenue NQ rev (3m)1.14%
Revenue NY rev (1m)1.17%
Revenue NY rev (3m)1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.19 | ||
| Fwd PE | 26.52 | ||
| P/S | 3.24 | ||
| P/FCF | 301.93 | ||
| P/OCF | 16.65 | ||
| P/B | 5.65 | ||
| P/tB | 5.99 | ||
| EV/EBITDA | 14.73 |
EPS(TTM)7.17
EY3.31%
EPS(NY)8.16
Fwd EY3.77%
FCF(TTM)0.72
FCFY0.33%
OCF(TTM)13
OCFY6%
SpS66.78
BVpS38.29
TBVpS36.12
PEG (NY)2.18
PEG (5Y)1.08
Graham Number78.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.49% | ||
| ROE | 18.89% | ||
| ROCE | 13.33% | ||
| ROIC | 11.12% | ||
| ROICexc | 13.99% | ||
| ROICexgc | 14.71% | ||
| OM | 11.16% | ||
| PM (TTM) | 10.83% | ||
| GM | 50.29% | ||
| FCFM | 1.07% |
ROA(3y)8.25%
ROA(5y)6.42%
ROE(3y)18.23%
ROE(5y)15.39%
ROIC(3y)10.81%
ROIC(5y)8.68%
ROICexc(3y)13.91%
ROICexc(5y)11.52%
ROICexgc(3y)15.17%
ROICexgc(5y)12.67%
ROCE(3y)12.96%
ROCE(5y)10.43%
ROICexgc growth 3Y42.44%
ROICexgc growth 5Y-6.84%
ROICexc growth 3Y45.5%
ROICexc growth 5Y-4.04%
OM growth 3Y62.56%
OM growth 5Y13.47%
PM growth 3YN/A
PM growth 5Y14.42%
GM growth 3Y4.71%
GM growth 5Y4.91%
F-Score6
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 8.53 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 200.47% | ||
| Cap/Sales | 18.39% | ||
| Interest Coverage | 41.03 | ||
| Cash Conversion | 95.73% | ||
| Profit Quality | 9.91% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 4.95 |
F-Score6
WACC8.98%
ROIC/WACC1.24
Cap/Depr(3y)155.34%
Cap/Depr(5y)159.17%
Cap/Sales(3y)13.52%
Cap/Sales(5y)13.19%
Profit Quality(3y)57.1%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.66%
EPS 3Y94.86%
EPS 5Y27.98%
EPS Q2Q%4.84%
EPS Next Y13.82%
EPS Next 2Y17.5%
EPS Next 3Y21.24%
EPS Next 5Y19.3%
Revenue 1Y (TTM)12.38%
Revenue growth 3Y11.73%
Revenue growth 5Y13.18%
Sales Q2Q%13.63%
Revenue Next Year12.61%
Revenue Next 2Y12.11%
Revenue Next 3Y12.19%
Revenue Next 5Y11.2%
EBIT growth 1Y16.59%
EBIT growth 3Y81.63%
EBIT growth 5Y28.42%
EBIT Next Year159.25%
EBIT Next 3Y58.25%
EBIT Next 5Y40.32%
FCF growth 1Y-76.6%
FCF growth 3YN/A
FCF growth 5Y-21.57%
OCF growth 1Y20.4%
OCF growth 3Y43.97%
OCF growth 5Y16.13%
AMAZON.COM INC / AMZN FAQ
Can you provide the ChartMill fundamental rating for AMAZON.COM INC?
ChartMill assigns a fundamental rating of 5 / 10 to AMZN.
What is the valuation status of AMAZON.COM INC (AMZN) stock?
ChartMill assigns a valuation rating of 2 / 10 to AMAZON.COM INC (AMZN). This can be considered as Overvalued.
What is the profitability of AMZN stock?
AMAZON.COM INC (AMZN) has a profitability rating of 8 / 10.
What is the earnings growth outlook for AMAZON.COM INC?
The Earnings per Share (EPS) of AMAZON.COM INC (AMZN) is expected to grow by 13.82% in the next year.