Company Analysis
Amazon.com Inc
AMZN • Retail
AI Summary
Amazon.com Inc. demonstrates strong growth potential with an impressive 36.5% EPS growth rate and a solid return on equity of 23.3%, supported by its diversified revenue streams across e-commerce, cloud services, and advertising. The stock is currently trading at a significant discount, at 245.22 compared to a fair value of 288.54, offering an attractive entry point for growth-focused investors. Its robust management and earnings power further enhance its appeal as a leading player in the evolving digital economy.
GoodStock Company Score
Score Breakdown
GoodStock Estimated Valuation
Valuation Range vs. Current Price
GoodStock Price Momentum
Momentum Indicators
AMZN Stock Price
GoodStockClassification
| Theme | Quality | Momentum | Value |
|---|---|---|---|
| Best in Class | + | + | + |
| Quality at a Price | + | + | - |
| Contrarian | + | - | + |
| Yesterday's News | + | - | - |
| Restructuring | - | + | + |
| Momentum Trap | - | + | - |
| Value Trap | - | - | + |
| Worst in Class | - | - | - |
These investments represent top-performing assets in their respective sectors, demonstrating consistent growth, strong management, and a competitive edge. Investors choose them for stability and reliability, expecting continued outperformance compared to peers.
Earnings History
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Financial Ratios
AI Financial Ratios Summary
The company's EPS of 8.37 coupled with a P/E ratio of 29.35 indicates that investors are willing to pay a premium for its earnings, reflecting positive growth expectations. A strong ROE of 23.34% suggests efficient use of equity capital, while a low debt-to-equity ratio of 0.22 indicates conservative leverage; however, the low interest coverage ratio of 0.62 raises concerns about the company's ability to meet interest obligations, potentially signaling financial stress. Together, these ratios imply that while the company demonstrates profitability and efficiency, liquidity and debt servicing risks may hinder its stock from reaching its full potential unless addressed.
- $8.37
- 29.35
- 23.34%
- 0.22%
- 0.62
- $455 K
- 0.84%
- $2670 B
Operational Ratios
AI Operational Ratios Summary
The company's operating margin of 11.5% and gross margin of 50.6% suggest a solid ability to generate profit from core operations, indicating effective cost control and pricing strategies. However, the negative five-year CAGR in free cash flow (-21.57%) raises concerns about cash generation efficiency, which could impact future growth and profitability despite strong margins; the positive CAPEX CAGR (26.85%) reflects ongoing investments that may support long-term expansion. Overall, while operational efficiency appears stable, declining cash flow warrants attention to sustain profitability and growth momentum.
- 11.5%
- 50.6%
- 12.22%
- 11.55%
- $0.0
- 0.0%
- -21.57%
- 26.85%
Valuation Ratios
AI Valuation Ratios Summary
The company's EBITD per share of 14.37 and a PEG ratio of 0.81 suggest it is generating solid earnings growth at an attractive valuation, potentially indicating undervaluation relative to its growth prospects. Although the negative price to SAP 500 ratio of -6.03 is unusual and may reflect data anomalies, the strong book value per share of 38.31 and cash per share of 11.46 further support a healthy financial position. Overall, these metrics imply the company might be undervalued and could offer promising investment potential, provided the negative ratio is clarified.
- $279
- $196
- $14.4
- -6.03%
- 0.81
- $170
- $38.3
- 11.5