Amazon.com Inc

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AMZN : NASDAQ : Services
$759.20 up 2.00 | 0.26%
Today's Range: 754.74 - 760.56
Avg. Daily Volume: 3,085,300
08/25/16 - 3:59 PM ET

Financial Analysis


AMAZON.COM INC's gross profit margin for the second quarter of its fiscal year 2016 has increased 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 40.53% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)30404.023184.0
EBITDA ($mil)3249.02016.0
EBIT ($mil)1340.0512.0
Net Income ($mil)857.092.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)16540.014001.0
Total Assets ($mil)65076.052440.0
Total Debt ($mil)17819.08250.0
Equity ($mil)16538.011768.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin43.1941.1
EBITDA Margin10.688.69
Operating Margin4.412.21
Sales Turnover1.851.83
Return on Assets2.96-0.35
Return on Equity11.67-1.59
Debt Q2 FY16 Q2 FY15
Current Ratio1.091.1
Debt/Capital0.520.41
Interest Expense116.0113.0
Interest Coverage11.554.53


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)474.0468.0
Div / share0.00.0
EPS1.780.19
Book value / share34.8925.15
Institutional Own % n/a n/a
Avg Daily Volume3098367.04288066.0

Valuation


BUY. AMAZON.COM INC's P/E ratio indicates a significant premium compared to an average of 154.94 for the Internet & Catalog Retail industry and a significant premium compared to the S&P 500 average of 25.30. For additional comparison, its price-to-book ratio of 21.91 indicates a significant premium versus the S&P 500 average of 2.83 and a significant premium versus the industry average of 16.87. 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 190.16 Peers 154.94   AMZN 28.32 Peers 28.15

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 72.39 Peers 121.60   AMZN 0.53 Peers 0.61

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.

 

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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AMZN 21.91 Peers 16.87   AMZN 1034.88 Peers 666.12

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 3.00 Peers 3.57   AMZN 25.91 Peers 25.28

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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