About Amazon.com, Inc.
Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, fire tablets, fire TVs, echo, ring, blink, and eero; and develops and produces media content. In addition, the company offers programs that enable sellers to sell their products in its stores; and programs that allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content. Further, it provides compute, storage, Artificial intelligence, database, analytics, machine learning, and other services, as well as advertising services through programs, such as sponsored ads, display, and video advertising. Additionally, the company offers Amazon Prime, a membership program. The company's products offered through its stores include merchandise and content purchased for resale and products offered by third-party sellers. It serves consumers, sellers, developers, enterprises, content creators, advertisers, and employees. The company was incorporated in 1994 and is headquartered in Seattle, Washington.
Amazon.com, Inc. (AMZN) is a Consumer Cyclical company in the Internet Retail industry with a market capitalisation of $2.7T. The stock trades at 20.07x trailing earnings.
- Sector
- Consumer Cyclical
- Industry
- Internet Retail
- Market cap
- $2.7T
- P/E ratio
- 20.07
- Forward P/E
- 23.99
- EPS (TTM)
- $12.42
- Revenue (TTM)
- $775.7B
- Free cash flow
- $3.2B
- Profit margin
- 17.4%
- Beta
- 1.44
- Shares outstanding
- 10.8B
Financial health: Strong8/10
7 strengths, 1 concern. Weakest points: free cash flow.
- Debt to equity: 0.17 (Strong, benchmark < 0.5) — Debt of 0.17x equity is conservative against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 0.0y (Strong, benchmark < 4 years) — Holds more cash than debt ($18.4B net cash).
- Current ratio: 1.05 (Watch, benchmark > 1.5) — Short-term assets cover 1.05x short-term liabilities, against Graham's 1.5x floor. It has improved over the last 4 years.
- Return on equity: 30.6% (Strong, benchmark > 15%) — Earns 30.6% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 50.8% (Strong, benchmark > 40%) — Keeps 50.8% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 17.4% (Strong, benchmark > 10%) — Turns 17.4% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: -$11.6B (Concern, benchmark positive) — Burned $11.6B of cash after capital spending, so operations did not fund themselves. It has deteriorated over the last 4 years.
- Revenue growth: 19.6% (Strong, benchmark > 10%) — Revenue changed 19.6% year on year, comfortably past the > 10% mark.
- Earnings growth: 242.3% (Strong, benchmark > 10%) — Earnings changed 242.3% year on year, comfortably past the > 10% mark.
- PEG ratio: 1.51 (Watch, benchmark < 1) — At 1.51, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.