AMAZON.COM INC (AMZN) Stock Fundamental Analysis
USA - NASDAQ:AMZN - US0231351067 - Common Stock
213.266 USD
-1.2 (-0.56%)
We assign a fundamental rating of 6 out of 10 to AMZN. AMZN was compared to 28 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 is valued quite expensively, but it does show have an excellent growth rating. These ratings would make AMZN suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year AMZN was profitable.
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 has a better Return On Assets (10.35%) than 89.29% 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.
With a decent Return On Invested Capital value of 12.89%, AMZN is doing good in the industry, outperforming 78.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AMZN is below the industry average of 10.41%.
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 has a Profit Margin of 10.54%. This is amongst the best in the industry. AMZN outperforms 85.71% of its industry peers.
In the last couple of years the Profit Margin of AMZN has grown nicely.
AMZN's Operating Margin of 11.37% is fine compared to the rest of the industry. AMZN outperforms 78.57% of its industry peers.
In the last couple of years the Operating Margin of AMZN has grown nicely.
AMZN's Gross Margin of 49.61% is fine compared to the rest 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 | 11.37% | ||
| 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
AMZN has more shares outstanding than it did 5 years ago.
AMZN has a better debt/assets ratio than last year.
2.2 Solvency
AMZN has an Altman-Z score of 5.73. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
AMZN has a Altman-Z score of 5.73. This is in the better half of the industry: AMZN outperforms 78.57% of its industry peers.
AMZN has a debt to FCF ratio of 3.76. This is a good value and a sign of high solvency as AMZN would need 3.76 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.76, AMZN is doing good in the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that AMZN is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.15, AMZN is doing good in the industry, outperforming 67.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 3.76 | ||
| Altman-Z | 5.73 |
ROIC/WACC1.52
WACC8.48%
2.3 Liquidity
AMZN has a Current Ratio of 1.02. This is a normal value and indicates that AMZN is financially healthy and should not expect problems in meeting 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.
With a Quick ratio value of 0.81, AMZN is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
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
AMZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 56.94%, which is quite impressive.
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 10.87%.
The Revenue has been growing by 17.86% on average over the past years. This is quite good.
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
AMZN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.37% yearly.
Based on estimates for the next years, AMZN will show a quite strong growth in Revenue. The Revenue will grow by 10.18% on average per year.
EPS Next Y23.32%
EPS Next 2Y18.3%
EPS Next 3Y18.96%
EPS Next 5Y19.37%
Revenue Next Year11.19%
Revenue Next 2Y10.75%
Revenue Next 3Y10.63%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.51, 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 at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
AMZN is valuated quite expensively with a Price/Forward Earnings ratio of 27.56.
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 (22.85), we can say AMZN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.51 | ||
| Fwd PE | 27.56 |
4.2 Price Multiples
AMZN's Enterprise Value to EBITDA is on the same level as 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 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 168.72 | ||
| EV/EBITDA | 16.4 |
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.
A more expensive valuation may be justified as AMZN's earnings are expected to grow with 18.96% in the coming years.
PEG (NY)1.39
PEG (5Y)0.88
EPS Next 2Y18.3%
EPS Next 3Y18.96%
5. Dividend
5.1 Amount
No dividends for AMZN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:AMZN (10/17/2025, 9:48:09 AM)
213.266
-1.2 (-0.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners66.15%
Inst Owner Change0.04%
Ins Owners8.29%
Ins Owner Change-2.94%
Market Cap2274.46B
Analysts85.13
Price Target269.33 (26.29%)
Short Float %0.72%
Short Ratio1.61
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)0.61%
PT rev (3m)9.19%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)4.3%
EPS NY rev (1m)0.17%
EPS NY rev (3m)7.88%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)2.71%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.51 | ||
| Fwd PE | 27.56 | ||
| P/S | 3.39 | ||
| P/FCF | 168.72 | ||
| P/OCF | 18.78 | ||
| P/B | 6.81 | ||
| P/tB | 7.32 | ||
| EV/EBITDA | 16.4 |
EPS(TTM)6.56
EY3.08%
EPS(NY)7.74
Fwd EY3.63%
FCF(TTM)1.26
FCFY0.59%
OCF(TTM)11.36
OCFY5.33%
SpS62.83
BVpS31.3
TBVpS29.13
PEG (NY)1.39
PEG (5Y)0.88
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 | 5.73 |
F-Score6
WACC8.48%
ROIC/WACC1.52
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 Y23.32%
EPS Next 2Y18.3%
EPS Next 3Y18.96%
EPS Next 5Y19.37%
Revenue 1Y (TTM)10.87%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%13.33%
Revenue Next Year11.19%
Revenue Next 2Y10.75%
Revenue Next 3Y10.63%
Revenue Next 5Y10.18%
EBIT growth 1Y40.12%
EBIT growth 3Y40.17%
EBIT growth 5Y36.35%
EBIT Next Year150.72%
EBIT Next 3Y52.77%
EBIT Next 5Y36.82%
FCF growth 1Y320.1%
FCF growth 3YN/A
FCF growth 5Y8.71%
OCF growth 1Y95.88%
OCF growth 3Y35.74%
OCF growth 5Y24.65%