AMAZON.COM INC (AMZN)
US0231351067 - Common Stock
Taking everything into account, AMZN scores 6 out of 10 in our fundamental rating. AMZN was compared to 34 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 expensive, but it does show an excellent growth. This makes AMZN very considerable for growth investing!
1. Profitability
1.1 Basic Checks
AMZN had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 7.10%, AMZN is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
AMZN has a Return On Equity of 17.39%. This is in the better half of the industry: AMZN outperforms 72.73% of its industry peers.
The Return On Invested Capital of AMZN (10.16%) is better than 75.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMZN is significantly below the industry average of 11.30%.
The 3 year average ROIC (6.24%) for AMZN is below the current ROIC(10.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.1% | ||
| ROE | 17.39% | ||
| ROIC | 10.16% |
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
With a decent Profit Margin value of 6.38%, AMZN is doing good in the industry, outperforming 72.73% of the companies in the same industry.
AMZN's Profit Margin has improved in the last couple of years.
AMZN's Operating Margin of 8.02% is fine compared to the rest 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.
AMZN has a better Gross Margin (47.59%) than 63.64% of its industry peers.
In the last couple of years the Gross Margin of AMZN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.02% | ||
| PM (TTM) | 6.38% | ||
| GM | 47.59% |
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) 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.
The debt/assets ratio for AMZN has been reduced compared to a year ago.
2.2 Solvency
AMZN has an Altman-Z score of 5.45. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AMZN (5.45) is better than 78.79% of its industry peers.
AMZN has a debt to FCF ratio of 1.81. This is a very positive value and a sign of high solvency as it would only need 1.81 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.81, AMZN is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that AMZN is not too dependend on debt financing.
AMZN has a Debt to Equity ratio of 0.34. This is comparable to the rest of the industry: AMZN outperforms 48.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.81 | ||
| Altman-Z | 5.45 |
ROIC/WACC1.01
WACC10.08%
2.3 Liquidity
A Current Ratio of 1.07 indicates that AMZN should not have too much problems paying its short term obligations.
AMZN has a worse Current ratio (1.07) than 81.82% of its industry peers.
AMZN has a Quick Ratio of 1.07. This is a bad value and indicates that AMZN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AMZN (0.87) is worse than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
AMZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 308.79%, 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 23.57% on average per year.
Looking at the last year, AMZN shows a quite strong growth in Revenue. The Revenue has grown by 12.54% in the last year.
Measured over the past years, AMZN shows a quite strong growth in Revenue. The Revenue has been growing by 19.80% on average per year.
EPS 1Y (TTM)308.79%
EPS 3Y11.56%
EPS 5Y23.57%
EPS growth Q2Q264.52%
Revenue 1Y (TTM)12.54%
Revenue growth 3Y14.19%
Revenue growth 5Y19.8%
Revenue growth Q2Q12.53%
3.2 Future
The Earnings Per Share is expected to grow by 30.67% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.91% on average over the next years. This is quite good.
EPS Next Y45.19%
EPS Next 2Y36.46%
EPS Next 3Y33.53%
EPS Next 5Y30.67%
Revenue Next Year12.33%
Revenue Next 2Y11.89%
Revenue Next 3Y11.41%
Revenue Next 5Y10.91%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 50.06, AMZN can be considered very expensive at the moment.
AMZN's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.28. AMZN is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 34.48, the valuation of AMZN can be described as expensive.
AMZN's Price/Forward Earnings is on the same level as the industry average.
AMZN is valuated expensively when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.06 | ||
| Fwd PE | 34.48 |
4.2 Price Multiples
AMZN's Enterprise Value to EBITDA ratio is in line with the industry average.
AMZN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.31 | ||
| EV/EBITDA | 19.86 |
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)1.11
PEG (5Y)2.12
EPS Next 2Y36.46%
EPS Next 3Y33.53%
5. Dividend
5.1 Amount
AMZN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AMAZON.COM INC
NASDAQ:AMZN (5/3/2024, 7:00:00 PM)
After market: 185.82 -0.39 (-0.21%)186.21
+1.49 (+0.81%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1933.42B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.06 | ||
| Fwd PE | 34.48 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
FCFY
OCF(TTM)
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SpS
BVpS
TBVpS
PEG (NY)1.11
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.1% | ||
| ROE | 17.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.02% | ||
| PM (TTM) | 6.38% | ||
| GM | 47.59% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
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 Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)308.79%
EPS 3Y11.56%
EPS 5Y
EPS growth Q2Q
EPS Next Y45.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.54%
Revenue growth 3Y14.19%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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