Amazon.com logged a -1.9% change during today's afternoon session, and is now trading at a price of $83.48 per share. The S&P 500 index moved -1.1% and the Nasdaq posted a -1.4% change. AMZN's trading volume is 48,458,425 compared to the stock's average volume of 81,067,017.
Amazon.com shares moved -47.8% over the last 52 weeks, with a high of $170.83 and a low of $81.69. During this time, the stock lagged the S&P 500 index by -29.9%. As of January 2022, the company's 50-day average price is $93.2688. 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 never offered any dividends.
Snapshot of the Company's Fundamentals:
| 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 | $1.15 | $2.09 | $3.24 |
| EPS Growth | n/a | 81.74% | 55.02% |
| 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 Is Overpriced:
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 74.5 and, based on its EPS guidance of 1.65, an expected P/E ratio of 50.6. The firm's price to earnings growth (PEG) is -32.75, 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 likely overvalued in terms of its net tangible assets. The company's shares are currently trading 226.1% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 2.16 * 13.482) = $25.6
Amazon.com Benefits From Positive Market Indicators:
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 $83.48, AMZN is trading -39.64% away from its average analyst target price of $138.3 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 $58,561,958,387.
