AMAZON.COM INC (AMZN) Fundamental Analysis & Valuation

NASDAQ:AMZN • US0231351067

Current stock price

207.54 USD
-4.17 (-1.97%)
At close:
208.04 USD
+0.5 (+0.24%)
After Hours:

This AMZN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. AMZN Profitability Analysis

1.1 Basic Checks

  • In the past year AMZN was profitable.
  • AMZN had a positive operating cash flow in the past year.
  • AMZN had positive earnings in 4 of the past 5 years.
  • In the past 5 years AMZN always reported a positive cash flow from operatings.
AMZN Yearly Net Income VS EBIT VS OCF VS FCFAMZN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50B 100B

1.2 Ratios

  • AMZN's Return On Assets of 9.49% is amongst the best of 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 76.67% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for AMZN is above the industry average of 8.76%.
  • The 3 year average ROIC (10.81%) for AMZN is below the current ROIC(11.12%), indicating increased profibility in the last year.
Industry RankSector 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%
AMZN Yearly ROA, ROE, ROICAMZN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15 20

1.3 Margins

  • Looking at the Profit Margin, with a value of 10.83%, AMZN belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
  • AMZN's Profit Margin has improved in the last couple of years.
  • AMZN has a better Operating Margin (11.16%) than 86.67% of its industry peers.
  • AMZN's Operating Margin has improved in the last couple of years.
  • With a decent Gross Margin value of 50.29%, AMZN is doing good in the industry, outperforming 70.00% of the companies in the same industry.
  • AMZN's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
AMZN Yearly Profit, Operating, Gross MarginsAMZN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40 50

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4

2. AMZN Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AMZN is still creating some value.
  • Compared to 1 year ago, AMZN has more shares outstanding
  • Compared to 5 years ago, AMZN has more shares outstanding
  • The debt/assets ratio for AMZN has been reduced compared to a year ago.
AMZN Yearly Shares OutstandingAMZN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B
AMZN Yearly Total Debt VS Total AssetsAMZN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200B 400B 600B 800B

2.2 Solvency

  • An Altman-Z score of 4.99 indicates that AMZN is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.99, 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 8.53, which is on the high side as it means it would take AMZN, 8.53 years of fcf income to pay off 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.
  • With a decent Debt to Equity ratio value of 0.16, AMZN is doing good in the industry, outperforming 73.33% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 8.53
Altman-Z 4.99
ROIC/WACC1.23
WACC9.05%
AMZN Yearly LT Debt VS Equity VS FCFAMZN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100B 200B 300B 400B

2.3 Liquidity

  • A Current Ratio of 1.05 indicates that AMZN should not have too much problems paying its short term obligations.
  • AMZN has a worse Current ratio (1.05) than 83.33% of its industry peers.
  • A Quick Ratio of 0.88 indicates that AMZN may have some problems paying 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 RankSector Rank
Current Ratio 1.05
Quick Ratio 0.88
AMZN Yearly Current Assets VS Current LiabilitesAMZN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B 200B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. AMZN Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 29.66% 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 27.98% on average per year.
  • Looking at the last year, AMZN shows a quite strong growth in Revenue. The Revenue has grown by 12.38% in the last year.
  • Measured over the past years, AMZN shows a quite strong growth in Revenue. The Revenue has been growing by 13.18% on average per year.
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 18.52% on average per year.
  • Based on estimates for the next years, AMZN will show a quite strong growth in Revenue. The Revenue will grow by 11.37% on average per year.
EPS Next Y10.67%
EPS Next 2Y16%
EPS Next 3Y19.5%
EPS Next 5Y18.52%
Revenue Next Year12.63%
Revenue Next 2Y12.14%
Revenue Next 3Y12.22%
Revenue Next 5Y11.37%

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.
AMZN Yearly Revenue VS EstimatesAMZN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500B 1T 1.5T
AMZN Yearly EPS VS EstimatesAMZN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 5 10 15 20

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2

4. AMZN Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 28.95, which means the current valuation is very expensive for AMZN.
  • The rest of the industry has a similar Price/Earnings ratio as AMZN.
  • AMZN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.23.
  • The Price/Forward Earnings ratio is 26.16, which means the current valuation is very expensive for AMZN.
  • Based on the Price/Forward Earnings ratio, AMZN is valued a bit more expensive than 60.00% of the companies in the same industry.
  • AMZN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.51.
Industry RankSector Rank
PE 28.95
Fwd PE 26.16
AMZN Price Earnings VS Forward Price EarningsAMZN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 63.33% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 289.53
EV/EBITDA 14.95
AMZN Per share dataAMZN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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 19.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.71
PEG (5Y)1.03
EPS Next 2Y16%
EPS Next 3Y19.5%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. AMZN Dividend Analysis

5.1 Amount

  • AMZN does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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AMZN Fundamentals: All Metrics, Ratios and Statistics

AMAZON.COM INC

NASDAQ:AMZN (3/26/2026, 8:04:24 PM)

After market: 208.04 +0.5 (+0.24%)

207.54

-4.17 (-1.97%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)02-05
Earnings (Next)04-29
Inst Owners67.02%
Inst Owner Change4.23%
Ins Owners8.98%
Ins Owner Change-0.11%
Market Cap2.23T
Revenue(TTM)716.92B
Net Income(TTM)77.67B
Analysts84.21
Price Target284 (36.84%)
Short Float %0.84%
Short Ratio1.58
Dividend
Industry RankSector 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)-4.85%
PT rev (3m)-4.06%
EPS NQ rev (1m)-1.88%
EPS NQ rev (3m)-5.65%
EPS NY rev (1m)-2.77%
EPS NY rev (3m)-2.41%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.16%
Revenue NY rev (1m)1.12%
Revenue NY rev (3m)1.23%
Valuation
Industry RankSector Rank
PE 28.95
Fwd PE 26.16
P/S 3.11
P/FCF 289.53
P/OCF 15.97
P/B 5.42
P/tB 5.75
EV/EBITDA 14.95
EPS(TTM)7.17
EY3.45%
EPS(NY)7.93
Fwd EY3.82%
FCF(TTM)0.72
FCFY0.35%
OCF(TTM)13
OCFY6.26%
SpS66.78
BVpS38.29
TBVpS36.12
PEG (NY)2.71
PEG (5Y)1.03
Graham Number78.6
Profitability
Industry RankSector 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 RankSector 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 4.99
F-Score6
WACC9.05%
ROIC/WACC1.23
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 Y10.67%
EPS Next 2Y16%
EPS Next 3Y19.5%
EPS Next 5Y18.52%
Revenue 1Y (TTM)12.38%
Revenue growth 3Y11.73%
Revenue growth 5Y13.18%
Sales Q2Q%13.63%
Revenue Next Year12.63%
Revenue Next 2Y12.14%
Revenue Next 3Y12.22%
Revenue Next 5Y11.37%
EBIT growth 1Y16.59%
EBIT growth 3Y81.63%
EBIT growth 5Y28.42%
EBIT Next Year159.28%
EBIT Next 3Y58.26%
EBIT Next 5Y39.66%
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 Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for AMAZON.COM INC?

ChartMill assigns a fundamental rating of 6 / 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 9 / 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 10.67% in the next year.