Amazon.com Inc (AMZN, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth trajectory. With its shares currently priced at $181.41, Amazon.com Inc has experienced a daily gain of 1.35% and a notable three-month change of 5.58%. A detailed analysis, supported by the GF Score, positions Amazon.com Inc for significant future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Amazon.com Inc boasts a GF Score of 92, signaling strong future performance potential.
- Financial strength rank: 7/10
- Profitability rank: 8/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 9/10
Understanding Amazon.com Inc's Business
Amazon.com Inc, with a market cap of $1.89 trillion and annual sales of $590.74 billion, is the leading online retailer globally. Its business is primarily divided into retail (75% of total revenue), Amazon Web Services (AWS) (15%), advertising services (5% to 10%), and other smaller segments. International sales, led by Germany, the UK, and Japan, make up 25% to 30% of Amazon's non-AWS revenue. The company's diverse revenue streams and substantial market presence underscore its industry dominance.
Financial Strength Breakdown
Amazon.com Inc's financial robustness is evident through its Financial Strength rating. The company's Interest Coverage ratio stands at an impressive 15.78, indicating its strong ability to cover interest expenses. Furthermore, an Altman Z-Score of 5.33 suggests a low probability of financial distress. The strategic management of its debt-to-revenue ratio, currently at 0.23, further solidifies Amazon.com Inc's financial health.
Profitability and Growth Metrics
Amazon.com Inc's Profitability Rank is impressive, with significant improvements in its Operating Margin and Gross Margin over the past five years. The company's commitment to growth is reflected in its high Growth rank, with a 3-Year Revenue Growth Rate of 13.1%, outperforming 70.53% of its industry peers. This sustained growth is further evidenced by the robust increase in EBITDA over recent years.
Conclusion
Considering Amazon.com Inc's strong financial strength, profitability, and growth metrics, the GF Score highlights the company's unparalleled position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
