AMAZON.COM INC (AMZN) Stock Fundamental Analysis
NASDAQ:AMZN - Nasdaq - US0231351067 - Common Stock - Currency: USD
Taking everything into account, AMZN scores 6 out of 10 in our fundamental rating. AMZN was compared to 30 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 shows excellent growth, but is valued quite expensive already. These ratings would make AMZN suitable for growth investing!
1. Profitability
1.1 Basic Checks
AMZN had positive earnings in the past year.
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's Return On Assets of 10.25% is amongst the best of the industry. AMZN outperforms 83.33% of its industry peers.
With an excellent Return On Equity value of 21.56%, AMZN belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.86%, AMZN is in the better half of the industry, outperforming 76.67% 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 11.34%.
The 3 year average ROIC (8.31%) for AMZN is below the current ROIC(12.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.25% | ||
| ROE | 21.56% | ||
| ROIC | 12.86% |
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
With an excellent Profit Margin value of 10.14%, AMZN belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
In the last couple of years the Profit Margin of AMZN has grown nicely.
With a decent Operating Margin value of 11.02%, AMZN is doing good in the industry, outperforming 80.00% of the companies in the same industry.
AMZN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 49.16%, AMZN is in the better half of the industry, outperforming 70.00% 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 | 11.02% | ||
| PM (TTM) | 10.14% | ||
| GM | 49.16% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AMZN is still 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
AMZN has an Altman-Z score of 5.90. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
AMZN has a Altman-Z score of 5.90. This is amongst the best in the industry. AMZN outperforms 90.00% of its industry peers.
The Debt to FCF ratio of AMZN is 2.56, which is a good value as it means it would take AMZN, 2.56 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.56, AMZN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
AMZN has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
AMZN has a better Debt to Equity ratio (0.17) than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.56 | ||
| Altman-Z | 5.9 |
ROIC/WACC1.4
WACC9.2%
2.3 Liquidity
AMZN has a Current Ratio of 1.05. This is a normal value and indicates that AMZN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of AMZN (1.05) is worse than 86.67% 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 has a worse Quick ratio (0.84) than 80.00% of its industry peers.
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 | 1.05 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
AMZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 71.99%, 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 10.08%.
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)71.99%
EPS 3Y37.19%
EPS 5Y36.89%
EPS Q2Q%62.24%
Revenue 1Y (TTM)10.08%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%8.62%
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 17.98% on average per year.
The Revenue is expected to grow by 9.37% on average over the next years. This is quite good.
EPS Next Y13.78%
EPS Next 2Y15.54%
EPS Next 3Y17.84%
EPS Next 5Y17.98%
Revenue Next Year8.91%
Revenue Next 2Y9.22%
Revenue Next 3Y9.41%
Revenue Next 5Y9.37%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 35.44 indicates a quite expensive valuation of AMZN.
The rest of the industry has a similar Price/Earnings ratio as AMZN.
AMZN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.59.
A Price/Forward Earnings ratio of 29.48 indicates a quite expensive valuation of AMZN.
AMZN's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of AMZN to the average of the S&P500 Index (22.39), we can say AMZN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.44 | ||
| Fwd PE | 29.48 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AMZN.
AMZN's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AMZN is more expensive than 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 111.02 | ||
| EV/EBITDA | 17.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 17.84% in the coming years.
PEG (NY)2.57
PEG (5Y)0.96
EPS Next 2Y15.54%
EPS Next 3Y17.84%
5. Dividend
5.1 Amount
AMZN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
217.61
+0.63 (+0.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners65.25%
Inst Owner Change1.25%
Ins Owners8.6%
Ins Owner Change-0.1%
Market Cap2310.22B
Analysts84.81
Price Target245.35 (12.75%)
Short Float %0.74%
Short Ratio1.38
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)18.24%
Min EPS beat(2)14.44%
Max EPS beat(2)22.03%
EPS beat(4)4
Avg EPS beat(4)19.84%
Min EPS beat(4)14.44%
Max EPS beat(4)22.71%
EPS beat(8)8
Avg EPS beat(8)32.11%
EPS beat(12)11
Avg EPS beat(12)28.33%
EPS beat(16)13
Avg EPS beat(16)23.35%
Revenue beat(2)0
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-1.56%
Revenue beat(4)0
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)-0.91%
Revenue beat(8)2
Avg Revenue beat(8)-1.04%
Revenue beat(12)4
Avg Revenue beat(12)-0.82%
Revenue beat(16)4
Avg Revenue beat(16)-1.26%
PT rev (1m)-0.43%
PT rev (3m)-9.84%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)-7.67%
EPS NY rev (1m)-1.3%
EPS NY rev (3m)-2.42%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.44 | ||
| Fwd PE | 29.48 | ||
| P/S | 3.55 | ||
| P/FCF | 111.02 | ||
| P/OCF | 20.28 | ||
| P/B | 7.55 | ||
| P/tB | 8.17 | ||
| EV/EBITDA | 17.58 |
EPS(TTM)6.14
EY2.82%
EPS(NY)7.38
Fwd EY3.39%
FCF(TTM)1.96
FCFY0.9%
OCF(TTM)10.73
OCFY4.93%
SpS61.26
BVpS28.81
TBVpS26.64
PEG (NY)2.57
PEG (5Y)0.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.25% | ||
| ROE | 21.56% | ||
| ROCE | 15.35% | ||
| ROIC | 12.86% | ||
| ROICexc | 16.12% | ||
| ROICexgc | 17.19% | ||
| OM | 11.02% | ||
| PM (TTM) | 10.14% | ||
| GM | 49.16% | ||
| FCFM | 3.2% |
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 Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.56 | ||
| Debt/EBITDA | 0.42 | ||
| Cap/Depr | 168.12% | ||
| Cap/Sales | 14.32% | ||
| Interest Coverage | 30.91 | ||
| Cash Conversion | 89.64% | ||
| Profit Quality | 31.56% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 5.9 |
F-Score6
WACC9.2%
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)71.99%
EPS 3Y37.19%
EPS 5Y36.89%
EPS Q2Q%62.24%
EPS Next Y13.78%
EPS Next 2Y15.54%
EPS Next 3Y17.84%
EPS Next 5Y17.98%
Revenue 1Y (TTM)10.08%
Revenue growth 3Y10.74%
Revenue growth 5Y17.86%
Sales Q2Q%8.62%
Revenue Next Year8.91%
Revenue Next 2Y9.22%
Revenue Next 3Y9.41%
Revenue Next 5Y9.37%
EBIT growth 1Y51.29%
EBIT growth 3Y40.17%
EBIT growth 5Y36.35%
EBIT Next Year143.61%
EBIT Next 3Y51.65%
EBIT Next 5Y32.09%
FCF growth 1Y342.8%
FCF growth 3YN/A
FCF growth 5Y8.71%
OCF growth 1Y109.65%
OCF growth 3Y35.74%
OCF growth 5Y24.65%