Amazon.com Inc

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AMZN : NASDAQ : Services
$740.1 -3.5 | -0.48%
Today's Range: 736.7 - 748.4903
Avg. Daily Volume: 4106300.0
12/02/16 - 1:42 PM ET

Financial Analysis


AMAZON.COM INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing net income growth, but not when comparing revenue growth.

At the same time, stockholders' equity ("net worth") has greatly increased by 43.05% from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)32714.025358.0
EBITDA ($mil)2691.02048.0
EBIT ($mil)608.0449.0
Net Income ($mil)252.079.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)18347.014428.0
Total Assets ($mil)70897.056230.0
Total Debt ($mil)18988.08243.0
Equity ($mil)17782.012430.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin41.3840.23
EBITDA Margin8.228.07
Operating Margin1.861.77
Sales Turnover1.811.79
Return on Assets2.960.58
Return on Equity11.832.63
Debt Q3 FY16 Q3 FY15
Current Ratio1.061.08
Debt/Capital0.520.4
Interest Expense118.0116.0
Interest Coverage5.153.87


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)475.0469.0
Div / share0.00.0
EPS0.520.17
Book value / share37.4426.5
Institutional Own % n/a n/a
Avg Daily Volume3735641.03089830.0

Valuation


HOLD. AMAZON.COM INC's P/E ratio indicates a significant premium compared to an average of 149.99 for the Internet & Catalog Retail industry and a significant premium compared to the S&P 500 average of 25.16. For additional comparison, its price-to-book ratio of 20.21 indicates a significant premium versus the S&P 500 average of 2.79 and a significant premium versus the industry average of 16.07. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, AMAZON.COM INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AMZN 173.09 Peers 149.99   AMZN 24.50 Peers 26.06

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

AMZN is trading at a premium to its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AMZN is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AMZN 78.59 Peers 134.24   AMZN 0.60 Peers 1.35

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

AMZN is trading at a premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

AMZN trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AMZN 20.21 Peers 16.07   AMZN 533.33 Peers 325.43

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AMZN is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

AMZN is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AMZN 2.81 Peers 3.57   AMZN 27.24 Peers 25.11

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AMZN is trading at a discount to its industry on this measurement.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

AMZN is keeping pace with its peers on the basis of sales growth.

 

 

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