Amazon.com Inc

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AMZN : NASDAQ : Services
$943.83 -11.0 | -1.2%
Today's Range: 940.63 - 949.42
Avg. Daily Volume: 3419400.0
09/25/17 - 10:38 AM ET

Financial Analysis


AMAZON.COM INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line.

At the same time, stockholders' equity ("net worth") has greatly increased by 40.36% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)37955.030404.0
EBITDA ($mil)3325.03249.0
EBIT ($mil)692.01340.0
Net Income ($mil)197.0857.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)21451.016540.0
Total Assets ($mil)87781.065076.0
Total Debt ($mil)23619.017860.0
Equity ($mil)23214.016538.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin45.1543.19
EBITDA Margin8.7610.68
Operating Margin1.824.41
Sales Turnover1.711.85
Return on Assets2.182.96
Return on Equity8.2711.67
Debt Q2 FY17 Q2 FY16
Current Ratio1.011.09
Debt/Capital0.50.52
Interest Expense143.0116.0
Interest Coverage4.8411.55


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)480.0474.0
Div / share0.00.0
EPS0.41.78
Book value / share48.3634.89
Institutional Own % n/a n/a
Avg Daily Volume3434012.03866169.0

Valuation


HOLD. AMAZON.COM INC's P/E ratio indicates a significant premium compared to an average of 194.24 for the Internet & Catalog Retail industry and a significant premium compared to the S&P 500 average of 24.93. For additional comparison, its price-to-book ratio of 19.95 indicates a significant premium versus the S&P 500 average of 3.11 and a discount versus the industry average of 20.02. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AMZN 244.84 Peers 194.24   AMZN 26.51 Peers 24.94

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 124.55 Peers 178.38   AMZN NM Peers 1.44

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 significant premium to its peers.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AMZN 19.95 Peers 20.02   AMZN -2.00 Peers 202.14

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

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

 

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

However, AMZN is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AMZN 3.08 Peers 4.25   AMZN 24.44 Peers 43.30

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 significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AMZN significantly trails its peers on the basis of sales growth

 

 

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