Amazon Com Inc (NASDAQ: AMZN)

Sector: Consumer Cyclical Industry: Internet Retail CIK: 0001018724
Market Cap 2,526.56 Bn
P/B 6.84
P/E 33.03
P/S 3.65
ROIC (Qtr) 11.81
Div Yield % 0.00
Rev 1y % (Qtr) 13.40
Total Debt (Qtr) 135.42 Bn
Debt/Equity (Qtr) 0.37

About

Amazon.com, Inc., popularly known as Amazon, is a multinational technology company that operates primarily in the e-commerce sector. The company's diverse operations span online shopping, digital content distribution, and cloud computing services. Amazon's stock symbol is AMZN, and it is a key player in the global technology industry. Amazon's main business activities are centered on its e-commerce platform, which offers a vast array of products ranging from books and electronics to clothing. The company's digital content offerings include Amazon...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 130.69B provides robust 0.97x coverage of total debt 135.42B, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 704.66B provides 5.20x coverage of total debt 135.42B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 130.69B provides exceptional 60.37x coverage of interest expenses 2.17B, showing strong debt service capability.
  • Strong operating cash flow of 130.69B provides 2.28x coverage of SG&A expenses 57.32B, showing efficient operational cost management.
  • Tangible assets of 704.66B provide exceptional 33.38x coverage of deferred revenue 21.11B, showing strong service capability backing.

Bear case

  • Operating cash flow of 130.69B barely covers its investment activities of (132.74B), with a coverage ratio of -0.98, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (132.74B) provide weak support for R&D spending of 102.69B, which is -1.29x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 66.92B provide limited coverage of acquisition spending of (4.97B), which is -13.46x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 14.79B provides weak coverage of capital expenditures of 115.90B, with a 0.13 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 95.11B show weak coverage of depreciation charges of 61.92B, with a 1.54 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Internet Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AMZN Amazon Com Inc 2,526.56 Bn 33.03 3.65 135.42 Bn
2 BABA Alibaba Group Holding Ltd 395.87 Bn 22.47 2.79 39.55 Bn
3 PDD PDD Holdings Inc. 149.89 Bn 10.44 2.55 1.50 Bn
4 MELI Mercadolibre Inc 106.40 Bn 51.23 4.06 9.88 Bn
5 DASH DoorDash, Inc. 88.88 Bn 103.00 7.03 3.26 Bn
6 SE Sea Ltd 73.28 Bn 51.67 3.48 4.24 Bn
7 EBAY Ebay Inc 64.91 Bn 5.04 6.46 7.02 Bn
8 JD JD.com, Inc. 42.35 Bn 9.36 0.23 15.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.58 1.64
EV to Cash from Ops. EV/CFO 19.92 10.76
EV to Debt EV to Debt 19.22 18.39
EV to EBIT EV/EBIT 27.36 20.59
EV to EBITDA EV/EBITDA 18.84 20.75
EV to Free Cash Flow [EV/FCF] EV/FCF 176.00 16.58
EV to Market Cap EV to Market Cap 1.03 -3.15
EV to Revenue EV/Rev 3.76 -4.05
Price to Book Value [P/B] P/B 6.84 5.50
Price to Earnings [P/E] P/E 33.03 36.85
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -93.84
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -203.90
Dividend per Basic Share Div per Share (Qtr) 0.00 0.08
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -3.46
Interest Coverage Int. cover (Qtr) 43.93 -1,581.43
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -78.42 -39.45
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -10.88 53.91
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 50.53 37.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 23.78 -62.59
EBIT Growth (1y) % EBIT 1y % (Qtr) 52.38 8.33
EBT Growth (1y) % EBT 1y % (Qtr) 55.25 -10.66
EPS Growth (1y) % EPS 1y % (Qtr) 51.15 13.44
FCF Growth (1y) % FCF 1y % (Qtr) -69.03 -46.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 15.26 23.19
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.95 1.17
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.04
Cash Ratio Cash Ratio (Qtr) 0.34 2.14
Current Ratio Curr Ratio (Qtr) 1.01 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.37 0.52
Interest Cover Ratio Int Coverage (Qtr) 43.93 -1,581.43
Times Interest Earned Times Interest Earned (Qtr) 43.93 -1,581.43
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 22.70 4.40
EBIT Margin % EBIT Margin % (Qtr) 13.76 -36.99
EBT Margin % EBT Margin % (Qtr) 13.44 -40.80
Gross Margin % Gross Margin % (Qtr) 50.00 44.74
Net Profit Margin % Net Margin % (Qtr) 11.10 -40.62