Amazon.com shares moved -50.7% over the last 52 weeks, with a high of $171.4 and a low of $81.69. During this time, the stock lagged the S&P 500 index by -30.8%. As of January 2022, the company's 50-day average price is $94.541. Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. The large-cap Consumer Cyclical company has 1,544,000 full time employees and is based in Seattle, WA. Amazon.com has not offered any dividends in the last year.
Growing Revenues But Stagnant Margins and Decreasing Cash Flows:
2019-12-31 | 2020-12-31 | 2021-12-31 | |
---|---|---|---|
Revenue (MM) | $280,522 | $386,064 | $469,822 |
Revenue Growth | n/a | 37.62% | 21.7% |
Gross Margins | 13.8% | 13.3% | 14.1% |
Gross Margins Growth | n/a | -3.62% | 6.02% |
Operating Margins | 5.2% | 5.9% | 5.3% |
Operating Margins Growth | n/a | 13.46% | -10.17% |
Earnings Per Share | $1.1505 | $2.0915 | $3.2405 |
EPS Growth | n/a | 81.79% | 54.94% |
Free Cash Flow (MM) | $21,653 | $25,924 | -$14,726 |
FCF Growth | n/a | 19.72% | -156.8% |
Capital Expenditures (MM) | -$16,861 | -$40,140 | -$61,053 |
Net Debt / EBITDA | 0.73 | 0.83 | 1.35 |
Amazon.com Has Elevated P/B and P/E Ratios:
Compared to the Consumer Cyclical sector's average of 24.11, Amazon.com has a trailing twelve month price to earnings (P/E) ratio of 76.4 and, based on its EPS guidance of 1.64, an expected P/E ratio of 51.2.
The firm's price to earnings growth (PEG) is -32.38, which tells us that the company is expected to have negative growth in the future.
Amazon.com's price to book (P/B) ratio is 6.2 compared to its sector average of 3.11. The company is likeley overvalued in terms of its net tangible assets. As of the date of publication, the company's shares are trading 359.8% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * TTM earnings per share * book value per share) = √(22.5 * 1.1 * 13.482) = $18.27
Amazon.com Has an Analyst Consensus of Strong Upside Potential and a Decent Amount of Insider Shareholders:
47 analysts are following Amazon.com and have set target prices ranging from $80 to $232.75 per share. On average, they have given the company a rating of buy. At the current price of $84, AMZN is trading -39.86% away from its average analyst target price of $139.68 per share, implying an analyst consensus of strong upside potential for the stock.
The company has a very low short interest since 0.8% of the company's shares are tied to short positions. Institutions own 60.9% of Amazon.com's shares, while the insider ownership rate stands at 9.84%. The biggest shareholder is the Vanguard Group, Inc. with a 7% stake in the company worth approximately $58,930,273,668.