Amazon.com Inc

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AMZN : NASDAQ : Services
$744.86 | %
Today's Range: 743.53 - 751.28
Avg. Daily Volume: 3,813,500
07/22/16 - 4:00 PM ET

Financial Analysis


AMAZON.COM INC's gross profit margin for the first quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though it increased sales and net income significantly, the company was unable to grow at a faster pace than its industry competitors.

At the same time, stockholders' equity ("net worth") has greatly increased by 35.71% from the same quarter last year.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)29128.022717.0
EBITDA ($mil)2943.01725.0
EBIT ($mil)1116.0299.0
Net Income ($mil)513.0-57.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)15859.013781.0
Total Assets ($mil)61128.050075.0
Total Debt ($mil)17422.08257.0
Equity ($mil)14756.010873.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin41.538.51
EBITDA Margin10.17.59
Operating Margin3.831.32
Sales Turnover1.861.84
Return on Assets1.9-0.81
Return on Equity7.9-3.73
Debt Q1 FY16 Q1 FY15
Current Ratio1.081.12
Debt/Capital0.540.43
Interest Expense117.0115.0
Interest Coverage9.542.6


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)472.0466.0
Div / share0.00.0
EPS1.07-0.12
Book value / share31.2623.33
Institutional Own % n/a n/a
Avg Daily Volume3880755.05069120.0

Valuation


BUY. AMAZON.COM INC's P/E ratio indicates a significant premium compared to an average of 228.09 for the Internet & Catalog Retail industry and a significant premium compared to the S&P 500 average of 25.03. For additional comparison, its price-to-book ratio of 23.71 indicates a significant premium versus the S&P 500 average of 2.80 and a significant premium versus the industry average of 17.82. 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 305.02 Peers 228.09   AMZN 30.95 Peers 31.78

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

AMZN is trading at a significant 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 73.46 Peers 143.90   AMZN 0.90 Peers 0.91

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

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

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AMZN 23.71 Peers 17.82   AMZN 373.03 Peers 259.80

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 3.08 Peers 3.64   AMZN 23.32 Peers 23.63

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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