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. AMZN scores excellent on profitability, but 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.
AMZN had a positive operating cash flow in the past year.
AMZN had positive earnings in 4 of the past 5 years.
Each year in the past 5 years AMZN had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.76%, AMZN is doing good in the industry, outperforming 72.73% of the companies in the same industry.
With a decent Return On Equity value of 15.07%, AMZN is doing good in the industry, outperforming 72.73% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.23%, AMZN is doing good in the industry, outperforming 69.70% 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 11.22%.
The 3 year average ROIC (6.24%) for AMZN is below the current ROIC(8.23%), indicating increased profibility in the last year.
| 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
AMZN's Profit Margin of 5.29% is fine compared to the rest of the industry. AMZN outperforms 69.70% of its industry peers.
AMZN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.41%, AMZN is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
In the last couple of years the Operating Margin of AMZN has grown nicely.
AMZN's Gross Margin of 46.98% is fine compared to the rest of the industry. AMZN outperforms 63.64% of its industry peers.
AMZN's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AMZN is destroying value.
Compared to 1 year ago, AMZN has more shares outstanding
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 5.03. This indicates that AMZN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.03, AMZN belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
AMZN has a debt to FCF ratio of 2.60. This is a good value and a sign of high solvency as AMZN would need 2.60 years to pay back of all of its debts.
AMZN has a better Debt to FCF ratio (2.60) than 72.73% of its industry peers.
AMZN has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
AMZN has a Debt to Equity ratio (0.37) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.6 | ||
| Altman-Z | 5.03 |
ROIC/WACC0.84
WACC9.85%
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.
A Quick Ratio of 0.84 indicates that AMZN may have some problems paying 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
AMZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 199.28%, 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.
The Revenue has grown by 11.83% in the past year. This is quite good.
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)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
AMZN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.10% yearly.
The Revenue is expected to grow by 11.49% on average over the next years. This is quite good.
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.
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
AMZN is valuated quite expensively with a Price/Earnings ratio of 61.91.
AMZN's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.20, AMZN is valued quite expensively.
A Price/Forward Earnings ratio of 42.64 indicates a quite expensive valuation of AMZN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMZN indicates a slightly more expensive valuation: AMZN is more expensive than 60.61% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, AMZN is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.91 | ||
| Fwd PE | 42.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMZN indicates a somewhat cheap valuation: AMZN is cheaper than 60.61% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMZN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.94 | ||
| EV/EBITDA | 21.36 |
4.3 Compensation for Growth
AMZN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AMZN 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)2.63
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 (4/23/2024, 5:05:07 PM)
After market: 179.74 +0.2 (+0.11%)179.54
+2.31 (+1.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
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Ins Owner Change
Market Cap1866.71B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.91 | ||
| Fwd PE | 42.64 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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SpS
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PEG (NY)1.37
PEG (5Y)2.63
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)
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 Turnover1.09
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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Profit Quality(3y)
Profit Quality(5y)
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
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
EBIT growth 5Y
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