Amazon.com Inc

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AMZN : NASDAQ : Services
$856.0 up 9.18 | 1.08%
Today's Range: 850.1 - 858.46
Avg. Daily Volume: 3268300.0
03/28/17 - 4:00 PM ET

Financial Analysis


AMAZON.COM INC's gross profit margin for the fourth quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. AMAZON.COM INC has weak liquidity. Currently, the Quick Ratio is 0.73 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 44.08% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)43741.035747.0
EBITDA ($mil)3586.02896.0
EBIT ($mil)1289.01144.0
Net Income ($mil)749.0482.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)25981.019808.0
Total Assets ($mil)83402.065444.0
Total Debt ($mil)20410.017547.0
Equity ($mil)19285.013384.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin39.0536.81
EBITDA Margin8.198.1
Operating Margin2.953.2
Sales Turnover1.631.64
Return on Assets2.840.91
Return on Equity12.294.45
Debt Q4 FY16 Q4 FY15
Current Ratio1.041.08
Debt/Capital0.510.57
Interest Expense133.0115.0
Interest Coverage9.699.95


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)477.0471.0
Div / share0.00.0
EPS1.541.0
Book value / share40.4328.42
Institutional Own % n/a n/a
Avg Daily Volume3251603.04171125.0

Valuation


BUY. AMAZON.COM INC's P/E ratio indicates a significant premium compared to an average of 156.49 for the Internet & Catalog Retail industry and a significant premium compared to the S&P 500 average of 26.33. For additional comparison, its price-to-book ratio of 20.96 indicates a significant premium versus the S&P 500 average of 2.93 and a significant premium versus the industry average of 17.10. 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 172.58 Peers 156.49   AMZN 24.58 Peers 23.00

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 64.98 Peers 90.70   AMZN 3.79 Peers 2.96

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AMZN 20.96 Peers 17.10   AMZN 295.96 Peers 156.73

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 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 2.97 Peers 3.82   AMZN 27.08 Peers 26.33

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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