Briefing on the Fundamentals of Amazon.com (AMZN)

Large-cap consumer discretionary company Amazon.com has moved -1.7% this afternoon, reaching $137.56 per share. In contrast, the average analyst target price for the stock is $170.37.

Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions through online and physical stores in North America and internationally. The company is based in the United States.

Make Sure to Consider the Following Before Buying Amazon.com:

  • Amazon.com has moved 13.0% over the last year.

  • AMZN has a forward P/E ratio of 43.7 based on its EPS guidance of 3.15.

  • Over the last 6 years, earnings per share (EPS) have been growing at a compounded average rate of 26.3%.

  • The company has a price to earnings growth (PEG) ratio of 0.76.

  • Its Price to Book (P/B) ratio is 8.41

Amazon.com Has a Pattern of Improving Cash Flows

Date Reported Cash Flow from Operations ($ k) Capital expenditures ($ k) Free Cash Flow ($ k) YoY Growth (%)
2023-01-28 46,752,000 -63,645,000 110,397,000 2.81
2022-02-04 46,327,000 -61,053,000 107,380,000 1.11
2021-02-03 66,064,000 -40,140,000 106,204,000 107.42
2020-01-31 38,514,000 -12,689,000 51,203,000 21.78
2019-02-01 30,723,000 -11,323,000 42,046,000 47.93
2018-02-02 18,365,000 -10,058,000 28,423,000

Amazon.com's free cash flow history is impressive because it displays year-on-year increases over the last 6 years. Averaging out at $74.28 Billion, and following a compounded average growth rate of 0.0%, investors who focus on cash flow growth should do further research on this firm.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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