AMAZON.COM INC (AMZN) Stock Fundamental Analysis
NASDAQ:AMZN - US0231351067 - Common Stock
229 USD
-2.6 (-1.12%)
228.697 USD
-0.3 (-0.13%)
AMZN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 28 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. This makes AMZN very considerable 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.
In the past 5 years AMZN always reported a positive cash flow from operatings.
1.2 Ratios
AMZN's Return On Assets of 10.35% is amongst the best of the industry. AMZN outperforms 85.71% of its industry peers.
Looking at the Return On Equity, with a value of 21.16%, AMZN belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
The Return On Invested Capital of AMZN (12.89%) is better than 78.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMZN is below the industry average of 11.00%.
The last Return On Invested Capital (12.89%) for AMZN is above the 3 year average (8.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.35% | ||
| ROE | 21.16% | ||
| ROIC | 12.89% |
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 10.54% is amongst the best of the industry. AMZN outperforms 85.71% of its industry peers.
In the last couple of years the Profit Margin of AMZN has grown nicely.
The Operating Margin of AMZN (11.37%) is better than 78.57% of its industry peers.
In the last couple of years the Operating Margin of AMZN has grown nicely.
The Gross Margin of AMZN (49.61%) is better than 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 | 11.37% | ||
| PM (TTM) | 10.54% | ||
| GM | 49.61% |
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
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
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 5.99. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AMZN (5.99) is better than 78.57% of its industry peers.
The Debt to FCF ratio of AMZN is 3.76, which is a good value as it means it would take AMZN, 3.76 years of fcf income to pay off all of its debts.
AMZN has a Debt to FCF ratio of 3.76. This is in the better half of the industry: AMZN outperforms 64.29% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that AMZN is not too dependend on debt financing.
AMZN has a Debt to Equity ratio of 0.15. This is in the better half of the industry: AMZN outperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 3.76 | ||
| Altman-Z | 5.99 |
ROIC/WACC1.45
WACC8.89%
2.3 Liquidity
A Current Ratio of 1.02 indicates that AMZN should not have too much problems paying its short term obligations.
AMZN's Current ratio of 1.02 is on the low side compared to the rest of the industry. AMZN is outperformed by 82.14% of its industry peers.
AMZN has a Quick Ratio of 1.02. This is a bad value and indicates that AMZN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.81, AMZN is doing worse than 78.57% of the companies in the same industry.
The current and quick ratio evaluation for AMZN is rather negative, while it does have 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 | 1.02 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 56.94% 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.
Looking at the last year, AMZN shows a quite strong growth in Revenue. The Revenue has grown by 10.87% 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)56.94%
EPS 3Y37.19%
EPS 5Y36.89%
EPS Q2Q%33.33%
Revenue 1Y (TTM)10.87%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%13.33%
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 19.69% on average per year.
AMZN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.18% yearly.
EPS Next Y23.1%
EPS Next 2Y18.4%
EPS Next 3Y19.83%
EPS Next 5Y19.69%
Revenue Next Year11.2%
Revenue Next 2Y10.73%
Revenue Next 3Y10.53%
Revenue Next 5Y10.18%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.91, which means the current valuation is very expensive for AMZN.
Compared to the rest of the industry, the Price/Earnings ratio of AMZN indicates a somewhat cheap valuation: AMZN is cheaper than 60.71% of the companies listed in the same industry.
AMZN is valuated rather expensively when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 29.54, AMZN can be considered very expensive at the moment.
AMZN's Price/Forward Earnings ratio is in line with the industry average.
AMZN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.91 | ||
| Fwd PE | 29.54 |
4.2 Price Multiples
AMZN's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 181.16 | ||
| EV/EBITDA | 17.55 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AMZN has an outstanding profitability rating, which may justify a higher PE ratio.
AMZN's earnings are expected to grow with 19.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.51
PEG (5Y)0.95
EPS Next 2Y18.4%
EPS Next 3Y19.83%
5. Dividend
5.1 Amount
AMZN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
229
-2.6 (-1.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners65.28%
Inst Owner Change0.57%
Ins Owners8.33%
Ins Owner Change-2.93%
Market Cap2442.26B
Analysts85.06
Price Target267.17 (16.67%)
Short Float %0.66%
Short Ratio1.45
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)19.18%
Min EPS beat(2)14.44%
Max EPS beat(2)23.92%
EPS beat(4)4
Avg EPS beat(4)20.78%
Min EPS beat(4)14.44%
Max EPS beat(4)23.92%
EPS beat(8)8
Avg EPS beat(8)24.84%
EPS beat(12)11
Avg EPS beat(12)28.45%
EPS beat(16)13
Avg EPS beat(16)23.56%
Revenue beat(2)1
Avg Revenue beat(2)-0.06%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)1.44%
Revenue beat(4)1
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)1.44%
Revenue beat(8)2
Avg Revenue beat(8)-0.88%
Revenue beat(12)5
Avg Revenue beat(12)-0.69%
Revenue beat(16)5
Avg Revenue beat(16)-0.94%
PT rev (1m)5.92%
PT rev (3m)8.42%
EPS NQ rev (1m)2.53%
EPS NQ rev (3m)-2.71%
EPS NY rev (1m)7.69%
EPS NY rev (3m)8.19%
Revenue NQ rev (1m)2.63%
Revenue NQ rev (3m)1.99%
Revenue NY rev (1m)1.91%
Revenue NY rev (3m)2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.91 | ||
| Fwd PE | 29.54 | ||
| P/S | 3.64 | ||
| P/FCF | 181.16 | ||
| P/OCF | 20.16 | ||
| P/B | 7.32 | ||
| P/tB | 7.86 | ||
| EV/EBITDA | 17.55 |
EPS(TTM)6.56
EY2.86%
EPS(NY)7.75
Fwd EY3.39%
FCF(TTM)1.26
FCFY0.55%
OCF(TTM)11.36
OCFY4.96%
SpS62.83
BVpS31.3
TBVpS29.13
PEG (NY)1.51
PEG (5Y)0.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.35% | ||
| ROE | 21.16% | ||
| ROCE | 15.38% | ||
| ROIC | 12.89% | ||
| ROICexc | 15.87% | ||
| ROICexgc | 16.84% | ||
| OM | 11.37% | ||
| PM (TTM) | 10.54% | ||
| GM | 49.61% | ||
| FCFM | 2.01% |
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 Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 3.76 | ||
| Debt/EBITDA | 0.38 | ||
| Cap/Depr | 183.83% | ||
| Cap/Sales | 16.07% | ||
| Interest Coverage | 35.21 | ||
| Cash Conversion | 89.9% | ||
| Profit Quality | 19.09% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 5.99 |
F-Score6
WACC8.89%
ROIC/WACC1.45
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)56.94%
EPS 3Y37.19%
EPS 5Y36.89%
EPS Q2Q%33.33%
EPS Next Y23.1%
EPS Next 2Y18.4%
EPS Next 3Y19.83%
EPS Next 5Y19.69%
Revenue 1Y (TTM)10.87%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%13.33%
Revenue Next Year11.2%
Revenue Next 2Y10.73%
Revenue Next 3Y10.53%
Revenue Next 5Y10.18%
EBIT growth 1Y40.12%
EBIT growth 3Y40.17%
EBIT growth 5Y36.35%
EBIT Next Year151.18%
EBIT Next 3Y53.68%
EBIT Next 5Y37.64%
FCF growth 1Y320.1%
FCF growth 3YN/A
FCF growth 5Y8.71%
OCF growth 1Y95.88%
OCF growth 3Y35.74%
OCF growth 5Y24.65%