AMAZON.COM INC (AMZN) Stock Fundamental Analysis
USA - NASDAQ:AMZN - US0231351067 - Common Stock
244.41 USD
+1.37 (+0.56%)
245.1 USD
+0.69 (+0.28%)
AMZN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 30 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. This makes AMZN very considerable for growth investing!
1. Profitability
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 10.51%. 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 20.69%, AMZN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
AMZN has a better Return On Invested Capital (11.98%) than 73.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMZN is below the industry average of 10.39%.
The last Return On Invested Capital (11.98%) for AMZN is above the 3 year average (8.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.51% | ||
| ROE | 20.69% | ||
| ROIC | 11.98% |
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 11.06%. This is amongst the best in the industry. AMZN outperforms 86.67% of its industry peers.
AMZN's Profit Margin has improved in the last couple of years.
AMZN has a Operating Margin of 11.02%. This is in the better half of the industry: AMZN outperforms 80.00% of its industry peers.
AMZN's Operating Margin has improved in the last couple of years.
AMZN has a better Gross Margin (50.05%) than 70.00% 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) | 11.06% | ||
| GM | 50.05% |
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.
The number of shares outstanding for AMZN has been increased compared to 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 is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
The Debt to FCF ratio of AMZN is 4.81, which is a neutral value as it means it would take AMZN, 4.81 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.81, AMZN is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
AMZN has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
AMZN has a better Debt to Equity ratio (0.14) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 4.81 | ||
| Altman-Z | 6.08 |
ROIC/WACC1.4
WACC8.56%
2.3 Liquidity
AMZN has a Current Ratio of 1.01. This is a normal value and indicates that AMZN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.01, AMZN is doing worse than 83.33% of the companies in the same industry.
AMZN has a Quick Ratio of 1.01. 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 has a Quick ratio of 0.80. This is amonst the worse of the industry: AMZN underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
AMZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.61%, 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 11.48%.
The Revenue has been growing by 17.86% on average over the past years. This is quite good.
EPS 1Y (TTM)51.61%
EPS 3Y37.19%
EPS 5Y36.89%
EPS Q2Q%36.36%
Revenue 1Y (TTM)11.48%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%13.4%
3.2 Future
AMZN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.45% yearly.
The Revenue is expected to grow by 11.04% on average over the next years. This is quite good.
EPS Next Y29.2%
EPS Next 2Y20.12%
EPS Next 3Y20.94%
EPS Next 5Y20.45%
Revenue Next Year11.74%
Revenue Next 2Y11.33%
Revenue Next 3Y11.2%
Revenue Next 5Y11.04%
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.
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 34.52, which means the current valuation is very expensive for AMZN.
Compared to the rest of the industry, the Price/Earnings ratio of AMZN is on the same level as its industry peers.
AMZN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.83.
Based on the Price/Forward Earnings ratio of 30.63, the valuation of AMZN can be described as expensive.
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 (32.68), we can say AMZN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.52 | ||
| Fwd PE | 30.63 |
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 60.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 246.84 | ||
| EV/EBITDA | 18.25 |
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 20.94% in the coming years.
PEG (NY)1.18
PEG (5Y)0.94
EPS Next 2Y20.12%
EPS Next 3Y20.94%
5. Dividend
5.1 Amount
No dividends for AMZN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
244.41
+1.37 (+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 Change-2.28%
Ins Owners8.29%
Ins Owner Change-2.94%
Market Cap2.61T
Revenue(TTM)691.33B
Net Income(TTM)76.48B
Analysts85.13
Price Target272.31 (11.42%)
Short Float %0.77%
Short Ratio1.79
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)22.74%
Min EPS beat(2)21.56%
Max EPS beat(2)23.92%
EPS beat(4)4
Avg EPS beat(4)20.49%
Min EPS beat(4)14.44%
Max EPS beat(4)23.92%
EPS beat(8)8
Avg EPS beat(8)20.32%
EPS beat(12)12
Avg EPS beat(12)32.13%
EPS beat(16)14
Avg EPS beat(16)26.96%
Revenue beat(2)1
Avg Revenue beat(2)0.4%
Min Revenue beat(2)-0.63%
Max Revenue beat(2)1.44%
Revenue beat(4)1
Avg Revenue beat(4)-0.61%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)1.44%
Revenue beat(8)2
Avg Revenue beat(8)-0.86%
Revenue beat(12)5
Avg Revenue beat(12)-0.55%
Revenue beat(16)5
Avg Revenue beat(16)-0.81%
PT rev (1m)1.44%
PT rev (3m)7.96%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)3.88%
EPS NY rev (1m)0.45%
EPS NY rev (3m)8.36%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)1.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.52 | ||
| Fwd PE | 30.63 | ||
| P/S | 3.77 | ||
| P/FCF | 246.84 | ||
| P/OCF | 19.94 | ||
| P/B | 7.05 | ||
| P/tB | 7.53 | ||
| EV/EBITDA | 18.25 |
EPS(TTM)7.08
EY2.9%
EPS(NY)7.98
Fwd EY3.26%
FCF(TTM)0.99
FCFY0.41%
OCF(TTM)12.25
OCFY5.01%
SpS64.82
BVpS34.66
TBVpS32.48
PEG (NY)1.18
PEG (5Y)0.94
Graham Number74.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.51% | ||
| ROE | 20.69% | ||
| ROCE | 14.3% | ||
| ROIC | 11.98% | ||
| ROICexc | 14.56% | ||
| ROICexgc | 15.37% | ||
| OM | 11.02% | ||
| PM (TTM) | 11.06% | ||
| GM | 50.05% | ||
| FCFM | 1.53% |
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%
ROICexgc growth 3Y12.76%
ROICexgc 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 Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 4.81 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 194.02% | ||
| Cap/Sales | 17.38% | ||
| Interest Coverage | 35.33 | ||
| Cash Conversion | 94.62% | ||
| Profit Quality | 13.81% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 6.08 |
F-Score6
WACC8.56%
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)51.61%
EPS 3Y37.19%
EPS 5Y36.89%
EPS Q2Q%36.36%
EPS Next Y29.2%
EPS Next 2Y20.12%
EPS Next 3Y20.94%
EPS Next 5Y20.45%
Revenue 1Y (TTM)11.48%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%13.4%
Revenue Next Year11.74%
Revenue Next 2Y11.33%
Revenue Next 3Y11.2%
Revenue Next 5Y11.04%
EBIT growth 1Y25.75%
EBIT growth 3Y40.17%
EBIT growth 5Y36.35%
EBIT Next Year150.72%
EBIT Next 3Y52.77%
EBIT Next 5Y39.32%
FCF growth 1Y-37.59%
FCF growth 3YN/A
FCF growth 5Y8.71%
OCF growth 1Y82.39%
OCF growth 3Y35.74%
OCF growth 5Y24.65%
AMAZON.COM INC / AMZN FAQ
Can you provide the ChartMill fundamental rating for AMAZON.COM INC?
ChartMill assigns a fundamental rating of 6 / 10 to AMZN.
Can you provide the valuation status for AMAZON.COM INC?
ChartMill assigns a valuation rating of 3 / 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 are the PE and PB ratios of AMAZON.COM INC (AMZN) stock?
The Price/Earnings (PE) ratio for AMAZON.COM INC (AMZN) is 34.52 and the Price/Book (PB) ratio is 7.05.