AMAZON.COM INC (AMZN)
US0231351067 - Common Stock
Overall AMZN gets a fundamental rating of 6 out of 10. We evaluated AMZN against 34 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. 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.
Each year in the past 5 years AMZN had a positive operating cash flow.
1.2 Ratios
AMZN's Return On Assets of 5.76% is fine compared to the rest of the industry. AMZN outperforms 72.73% of its industry peers.
The Return On Equity of AMZN (15.07%) is better than 72.73% of its industry peers.
AMZN's Return On Invested Capital of 8.23% is fine compared to the rest of the industry. AMZN outperforms 69.70% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AMZN is below the industry average of 11.22%.
The last Return On Invested Capital (8.23%) for AMZN is above the 3 year average (6.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.76% | ||
| ROE | 15.07% | ||
| ROIC | 8.23% |
ROA(3y)4.37%
ROA(5y)4.98%
ROE(3y)12.45%
ROE(5y)15.77%
ROIC(3y)6.24%
ROIC(5y)7.36%
1.3 Margins
The Profit Margin of AMZN (5.29%) is better than 69.70% of its industry peers.
AMZN's Profit Margin has improved in the last couple of years.
AMZN has a Operating Margin of 6.41%. This is in the better half of the industry: AMZN outperforms 69.70% of its industry peers.
In the last couple of years the Operating Margin of AMZN has grown nicely.
Looking at the Gross Margin, with a value of 46.98%, AMZN is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
In the last couple of years the Gross Margin of AMZN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.41% | ||
| PM (TTM) | 5.29% | ||
| GM | 46.98% |
OM growth 3Y2.68%
OM growth 5Y3.78%
PM growth 3Y-1.42%
PM growth 5Y4.12%
GM growth 3Y5.89%
GM growth 5Y3.14%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AMZN is destroying 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 5.06. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
AMZN has a better Altman-Z score (5.06) than 81.82% of its industry peers.
The Debt to FCF ratio of AMZN is 2.60, which is a good value as it means it would take AMZN, 2.60 years of fcf income to pay off all of its debts.
AMZN has a better Debt to FCF ratio (2.60) than 72.73% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that AMZN is not too dependend on debt financing.
AMZN has a Debt to Equity ratio of 0.37. This is comparable to the rest of the industry: AMZN outperforms 48.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.6 | ||
| Altman-Z | 5.06 |
ROIC/WACC0.87
WACC9.49%
2.3 Liquidity
A Current Ratio of 1.05 indicates that AMZN should not have too much problems paying its short term obligations.
AMZN's Current ratio of 1.05 is on the low side compared to the rest of the industry. AMZN is outperformed by 87.88% 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 0.84 is on the low side compared to the rest of the industry. AMZN is outperformed by 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 199.28% 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 23.57% on average per year.
The Revenue has grown by 11.83% in the past year. This is quite good.
The Revenue has been growing by 19.80% on average over the past years. This is quite good.
EPS 1Y (TTM)199.28%
EPS 3Y11.56%
EPS 5Y23.57%
EPS growth Q2Q300%
Revenue 1Y (TTM)11.83%
Revenue growth 3Y14.19%
Revenue growth 5Y19.8%
Revenue growth Q2Q13.91%
3.2 Future
The Earnings Per Share is expected to grow by 26.10% on average over the next years. This is a very strong growth
Based on estimates for the next years, AMZN will show a quite strong growth in Revenue. The Revenue will grow by 11.49% on average per year.
EPS Next Y45.19%
EPS Next 2Y36.46%
EPS Next 3Y33.53%
EPS Next 5Y26.1%
Revenue Next Year12.33%
Revenue Next 2Y11.89%
Revenue Next 3Y11.41%
Revenue Next 5Y11.49%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
A Price/Earnings ratio of 61.80 indicates a quite expensive valuation of AMZN.
The rest of the industry has a similar Price/Earnings ratio as AMZN.
The average S&P500 Price/Earnings ratio is at 24.80. AMZN is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 42.56, which means the current valuation is very expensive for AMZN.
60.61% of the companies in the same industry are cheaper than AMZN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.27. AMZN is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.8 | ||
| Fwd PE | 42.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMZN is valued a bit cheaper than the industry average as 60.61% of the companies are valued more expensively.
AMZN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.78 | ||
| EV/EBITDA | 21.58 |
4.3 Compensation for Growth
AMZN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AMZN has a very decent 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 33.53% in the coming years.
PEG (NY)1.37
PEG (5Y)2.62
EPS Next 2Y36.46%
EPS Next 3Y33.53%
5. Dividend
5.1 Amount
No dividends for AMZN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AMAZON.COM INC
NASDAQ:AMZN (4/18/2024, 7:00:00 PM)
Premarket: 178.68 -0.54 (-0.3%)179.22
-2.06 (-1.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
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Market Cap1861.63B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.8 | ||
| Fwd PE | 42.56 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
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EPS(TTM)
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PEG (NY)1.37
PEG (5Y)2.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.76% | ||
| ROE | 15.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.41% | ||
| PM (TTM) | 5.29% | ||
| GM | 46.98% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
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ROCE(5y)
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ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
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Growth
EPS 1Y (TTM)199.28%
EPS 3Y11.56%
EPS 5Y
EPS growth Q2Q
EPS Next Y45.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.83%
Revenue growth 3Y14.19%
Revenue growth 5Y
Revenue growth Q2Q
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Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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