Switch to:
Also traded in: Brazil, Chile, Germany, Mexico, Peru, Switzerland, UK

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 1.93
AMZN's Cash to Debt is ranked higher than
55% of the 944 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.99 vs. AMZN: 1.93 )
Ranked among companies with meaningful Cash to Debt only.
AMZN' s Cash to Debt Range Over the Past 10 Years
Min: 0.02  Med: 1.40 Max: No Debt
Current: 1.93
Equity to Asset 0.24
AMZN's Equity to Asset is ranked lower than
87% of the 927 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.48 vs. AMZN: 0.24 )
Ranked among companies with meaningful Equity to Asset only.
AMZN' s Equity to Asset Range Over the Past 10 Years
Min: -0.88  Med: 0.19 Max: 0.41
Current: 0.24
-0.88
0.41
Interest Coverage 6.60
AMZN's Interest Coverage is ranked lower than
74% of the 725 Companies
in the Global Specialty Retail industry.

( Industry Median: 19.26 vs. AMZN: 6.60 )
Ranked among companies with meaningful Interest Coverage only.
AMZN' s Interest Coverage Range Over the Past 10 Years
Min: 0.85  Med: 7.93 Max: 36.05
Current: 6.6
0.85
36.05
F-Score: 6
Z-Score: 5.42
M-Score: -3.21
WACC vs ROIC
13.86%
21.98%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 2.69
AMZN's Operating margin (%) is ranked lower than
62% of the 940 Companies
in the Global Specialty Retail industry.

( Industry Median: 3.43 vs. AMZN: 2.69 )
Ranked among companies with meaningful Operating margin (%) only.
AMZN' s Operating margin (%) Range Over the Past 10 Years
Min: 0.2  Med: 2.86 Max: 4.61
Current: 2.69
0.2
4.61
Net-margin (%) 1.03
AMZN's Net-margin (%) is ranked lower than
69% of the 940 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.20 vs. AMZN: 1.03 )
Ranked among companies with meaningful Net-margin (%) only.
AMZN' s Net-margin (%) Range Over the Past 10 Years
Min: -0.27  Med: 1.54 Max: 3.68
Current: 1.03
-0.27
3.68
ROE (%) 9.22
AMZN's ROE (%) is ranked lower than
56% of the 926 Companies
in the Global Specialty Retail industry.

( Industry Median: 6.81 vs. AMZN: 9.22 )
Ranked among companies with meaningful ROE (%) only.
AMZN' s ROE (%) Range Over the Past 10 Years
Min: -2.35  Med: 13.82 Max: 58.48
Current: 9.22
-2.35
58.48
ROA (%) 2.04
AMZN's ROA (%) is ranked lower than
65% of the 947 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.91 vs. AMZN: 2.04 )
Ranked among companies with meaningful ROA (%) only.
AMZN' s ROA (%) Range Over the Past 10 Years
Min: -0.51  Med: 3.79 Max: 8.78
Current: 2.04
-0.51
8.78
ROC (Joel Greenblatt) (%) 14.88
AMZN's ROC (Joel Greenblatt) (%) is ranked lower than
58% of the 942 Companies
in the Global Specialty Retail industry.

( Industry Median: 13.88 vs. AMZN: 14.88 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
AMZN' s ROC (Joel Greenblatt) (%) Range Over the Past 10 Years
Min: 0.71  Med: 56.10 Max: 147.4
Current: 14.88
0.71
147.4
Revenue Growth (3Y)(%) 18.50
AMZN's Revenue Growth (3Y)(%) is ranked higher than
91% of the 779 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.50 vs. AMZN: 18.50 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
AMZN' s Revenue Growth (3Y)(%) Range Over the Past 10 Years
Min: 16.8  Med: 28.90 Max: 304.2
Current: 18.5
16.8
304.2
EBITDA Growth (3Y)(%) 41.30
AMZN's EBITDA Growth (3Y)(%) is ranked higher than
94% of the 649 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.60 vs. AMZN: 41.30 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
AMZN' s EBITDA Growth (3Y)(%) Range Over the Past 10 Years
Min: 15.7  Med: 32.05 Max: 220.1
Current: 41.3
15.7
220.1
» AMZN's 10-Y Financials

Financials (Next Earnings Date: Est. 2016-07-09)


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2015

AMZN Guru Trades in Q2 2015

Andreas Halvorsen 2,282,561 sh (New)
Robert Karr 5,540 sh (New)
Chase Coleman 747,000 sh (New)
Louis Moore Bacon 178,500 sh (+93.47%)
RS Investment Management 28,620 sh (+70.97%)
Steven Cohen 536,000 sh (+62.38%)
PRIMECAP Management 278,470 sh (+15.52%)
Mario Gabelli 10,095 sh (+1.36%)
Ken Fisher 2,490,542 sh (+1.01%)
Dodge & Cox 770 sh (unchged)
Mairs and Power 728 sh (unchged)
Julian Robertson 73,500 sh (unchged)
Caxton Associates 40,000 sh (unchged)
First Eagle Investment 307 sh (unchged)
Manning & Napier Advisors, Inc Sold Out
John Burbank Sold Out
Pioneer Investments 7,509 sh (-1.48%)
Ron Baron 60,036 sh (-1.76%)
Chris Davis 4,497,620 sh (-2.88%)
Murray Stahl 2,190 sh (-3.86%)
Bill Nygren 919,000 sh (-24.61%)
Jeremy Grantham 2,485,973 sh (-34.36%)
Paul Tudor Jones 2,775 sh (-44.38%)
Caxton Associates 4,495 sh (-73.24%)
Jim Simons 78,355 sh (-93.20%)
» More
Q3 2015

AMZN Guru Trades in Q3 2015

John Burbank 14,941 sh (New)
George Soros 77,877 sh (New)
Leon Cooperman 35,800 sh (New)
Stanley Druckenmiller 97,300 sh (New)
Steve Mandel 1,937,002 sh (New)
Frank Sands 1,745,554 sh (New)
Ray Dalio 18,906 sh (New)
Chase Coleman 3,193,590 sh (+327.52%)
Caxton Associates 11,960 sh (+166.07%)
Andreas Halvorsen 3,017,764 sh (+32.21%)
Mario Gabelli 11,962 sh (+18.49%)
Steven Cohen 618,200 sh (+15.34%)
Ron Baron 64,617 sh (+7.63%)
Pioneer Investments 7,961 sh (+6.02%)
Ken Fisher 2,498,513 sh (+0.32%)
PRIMECAP Management 278,870 sh (+0.14%)
First Eagle Investment 307 sh (unchged)
Dodge & Cox 770 sh (unchged)
David Carlson 155,000 sh (unchged)
Mairs and Power 728 sh (unchged)
Louis Moore Bacon 5,000 sh (unchged)
Jim Simons Sold Out
RS Investment Management 27,170 sh (-5.07%)
Robert Karr 3,990 sh (-27.98%)
Chris Davis 3,126,309 sh (-30.49%)
Jeremy Grantham 1,656,467 sh (-33.37%)
Bill Nygren 599,000 sh (-34.82%)
Murray Stahl 1,339 sh (-38.86%)
Louis Moore Bacon 76,000 sh (-57.42%)
Paul Tudor Jones 836 sh (-69.87%)
» More
Q4 2015

AMZN Guru Trades in Q4 2015

Wallace Weitz 500 sh (New)
Tom Gayner 3,300 sh (New)
Diamond Hill Capital 349 sh (New)
John Burbank 104,434 sh (+598.98%)
Louis Moore Bacon 153,697 sh (+102.23%)
First Eagle Investment 617 sh (+100.98%)
Stanley Druckenmiller 190,000 sh (+95.27%)
Pioneer Investments 11,052 sh (+38.83%)
George Soros 106,363 sh (+36.58%)
Frank Sands 2,113,048 sh (+21.05%)
Mairs and Power 853 sh (+17.17%)
Steve Mandel 2,207,252 sh (+13.95%)
Mario Gabelli 13,172 sh (+10.12%)
RS Investment Management 29,410 sh (+8.24%)
Jeremy Grantham 1,684,685 sh (+1.70%)
John Burbank 5,000 sh (unchged)
Eric Mindich 200,000 sh (unchged)
Chase Coleman 3,193,590 sh (unchged)
Paul Tudor Jones 7,700 sh (unchged)
Paul Tudor Jones 9,100 sh (unchged)
Robert Karr 3,990 sh (unchged)
PRIMECAP Management 278,870 sh (unchged)
Spiros Segalas 2,176,160 sh (unchged)
Bill Nygren Sold Out
Jerome Dodson Sold Out
Caxton Associates Sold Out
Ken Fisher 2,497,597 sh (-0.04%)
Leon Cooperman 35,600 sh (-0.56%)
Ron Baron 62,928 sh (-2.61%)
David Carlson 140,000 sh (-9.68%)
Chris Davis 2,803,142 sh (-10.34%)
Andreas Halvorsen 2,567,446 sh (-14.92%)
Dodge & Cox 605 sh (-21.43%)
Murray Stahl 903 sh (-32.56%)
Ray Dalio 8,206 sh (-56.60%)
Paul Tudor Jones 300 sh (-64.11%)
Steven Cohen 8,100 sh (-98.69%)
» More
Q1 2016

AMZN Guru Trades in Q1 2016

Manning & Napier Advisors, Inc 129,130 sh (New)
Murray Stahl 918 sh (+1.66%)
Ken Fisher 2,503,102 sh (+0.22%)
Spiros Segalas 2,073,277 sh (-4.73%)
» More
» Details

Insider Trades

Latest Guru Trades with AMZN

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

No Entry found in the selected group of Gurus. You can
  • 1. Modify your Personalized List of Gurus, or
  • 2. Click on Premium Premium Tools above to check out all the Gurus, or
  • 3. Click on Premium Plus Premium Plus above for the stocks picks of all the institutional investment advisors (>4000)
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Amazon.com Inc

Meridian Funds Comments on Amazon.com Inc. - Mar 08, 2016

Amazon.com, Inc. (NASDAQ:AMZN) continues to move the needle on many fronts, including cloud computing. Amazon Web Services (AWS), which rents computing power and storage for corporate customers, is the leader in this space and continues to strengthen its competitive advantage through major feature releases, more data centers, and price cuts for several of its services. Although AWS recently announced annual revenue growth of approximately 60% and a profit margin of greater than 50%, we believe this segment of the business has much more room to grow. Another positive development for the stock was a significant shift in consumer buying trends during the holiday season as more people chose to do their shopping in the e-commerce marketplace rather than in bricks-and-mortar stores. This shift helped Amazon exceed earning expectations during the third quarter.



From the Meridian Equity Income Fund fourth quarter commentary.



Check out Meridian Funds latest stock trades

Eddie Lampert Comments on Amazon - Feb 26, 2016

Companies like Amazon (NASDAQ:AMZN) were able to grow rapidly without having to collect sales tax, while traditional retail companies had the dual disadvantages of having to report profits and to collect sales tax from their customers. While it is true that Amazon’s customers, by law, were required to calculate and pay sales tax in states that required it, many commentators conveniently ignored these laws in their coverage of Amazon and the state and local authorities did little to enforce the existing laws. The consequence? We are now seeing more and more retail stores shut down and the tax base of many municipalities eroding due to the hollowing out of the sales tax base as the Wall Street Journal recently reported. Even the largest and most successful retailers, like Walmart, are shuttering stores all over the world.

From Edward Lampert (Trades, Portfolio)'s 2015 annual letter for Sears Holdings.

Check out Edward Lampert latest stock trades

Investor Chris Davis Comments on Amazon - Feb 18, 2016

Today technology is accelerating the pace of disruption. This change is best seen by contrasting the history of a past disrupter Walmart with a new disrupter Amazon (NASDAQ:AMZN). Walmart opened its first store in 1962 and, with its everyday low pricing model, strong management and tight cost control, enjoyed real competitive advantages relative to the much larger and better regarded existing competition. Eighteen years later, the company reached $1 billion in sales and today has sales approaching $500 billion, dwarfing its competitors such as Kmart and Sears that have largely been left in the dust. In contrast, Amazon has disrupted entrenched competitors in a matter of years not decades. Remembering Walmart took 18 years to reach sales of $1 billion, we consider it astonishing that Amazon was selling approximately $95 billion worth of merchandise in its 18th year, almost 100 times more than Walmart sold during the comparable period in its history.

With Amazon achieving success at such a rapid pace, investors who were slow to study the company because of its short operating history not only missed out on its potential as an investment but also were slow to identify the threat it posed to so many other retailers. Companies ranging from Borders and Blockbuster to Circuit City and RadioShack have already filed for bankruptcy and many more are sure to follow. While extraordinary, Amazon is hardly a lone example. Companies such as Google, Netflix and Facebook have overpowered many traditional media businesses, Uber and AirBNB are challenging the taxi and hotel industries, and a number of new companies are using biotechnology to challenge traditional pharmaceutical businesses. The bottom line is technological disruption is rapidly changing the investment landscape, creating great opportunities for investors who can adapt and enormous risks for investors who cannot.



From Chris Davis (Trades, Portfolio)' New York Venture Fund 4th quarter 2015 commentary.

Check out Chris Davis latest stock trades

Baron Funds Comments on Amazon.com - Feb 15, 2016

Shares of Amazon.com, Inc. (NASDAQ:AMZN) underwent a major re-rating in 2015 as the stock appreciated 118% amid a flat market return environment. Better financial disclosures around Amazon’s cloud computing business, Amazon Web Services (AWS), led to the realization that the business is significantly larger, growing faster, and is already very profitable. AWS is estimated to have between 80% and 85% market share of all workloads that are being run in the cloud. The penetration of cloud-based workloads is less than 5% today and we believe it is poised for continued rapid growth. In the meantime, the core retail business is firing on all cylinders. During the Christmas holiday week alone, Amazon added three million new Prime members and shipped packages from 110 countries to customers located in 185 countries, with 70% of the orders coming from mobile devices. We believe that Amazon’s structural competitive advantages are strengthening with tens of millions of Prime members solidifying its grip on e-commerce, the unrivaled distribution footprint facilitating significant gains in third-party business, and AWS’s scale and dominance as a new computing platform creating and adding to the very meaningful benefits of the company’s network effect already in place.





From Baron Funds' Global Advantage Fund letter for the fourth quarter 2015.



Check out Ron Baron latest stock trades

Baron Funds Comments on Amazon.com - Feb 08, 2016

Shares of Amazon.com, Inc. (NASDAQ:AMZN) rose on strong fourth quarter results. Enhanced financial disclosures demonstrated that Amazon Web Services (AWS) was more profitable than investors anticipated. Rapid growth in the retail and AWS businesses boosted confidence in the company’s growth plans. With e-commerce comprising just 10% of global retail sales, we believe the shift to online retailing represents a multi-year growth opportunity. We also believe that, over time, the nascent AWS cloud computing opportunity will account for the majority of Amazon’s value. (Ashim Mehra)



From the Baron Funds Opportunity Fund fourth quarter 2015 commentary.



Check out Ron Baron latest stock trades

Weitz Funds Comments on Amazon - Jan 25, 2016

Amazon (NASDAQ:AMZN) is an e-commerce and cloud computing company. While the company’s retail business is seemingly ubiquitous, we believe that Amazon has built a considerable and globally- competitive advantage that will successfully challenge for significant share of the worldwide retail (not just e-commerce) market. The company has a long runway of growth ahead; Amazon’s strong, customer- obsessed culture is unique among technology and retail firms, and its long-term investment philosophy allows for a continuous flow of new product ideas. In addition to the retail business, the company’s Amazon Web Service business has built significant share and scale within the infrastructure as a service sector of technology. This business is highly profitable and participates in a large and growing market.





From the Weitz Funds' Research Fund shareholder letter for fourth quarter 2015.



Check out Wallace Weitz latest stock trades

Bill Nygren Comments on Amazon - Jan 08, 2016

We eliminated our Amazon (NASDAQ:AMZN) stake during the quarter, as the stock’s rapid climb in 2015 brought the shares up to our estimate of intrinsic value. While our holding period for Amazon (first purchased in the Fund in the second quarter of 2014) was much shorter than is typical for us, we’ve always said that turnover is simply a byproduct of the length of time required for price to converge with value. We’ll happily show high turnover when it is the result of rapid stock price appreciation. We reinvested the Amazon proceeds across existing holdings, ending the quarter with investments in 19 companies; the Fund generally holds about 20 positions.



From Oakmark Select Fund's fourth quarter 2015 commentary.



Check out Bill Nygren latest stock trades

Bill Nygren Comments on Amazon - Jan 08, 2016

Amazon (NASDAQ:AMZN) has been a great holding for the Fund, and with the share price more than doubling in 2015, we believe the business is now fairly valued. With minimal reported earnings and a very high P/E ratio, Amazon may have looked like an unusual purchase for a value-based fund when we initiated a position in April 2014. We looked past reported earnings, which were tempered by large investments for future growth, and found that the scale and core earnings power of Amazon’s business were quite impressive and under-appreciated.



From Oakmark Fund's fourth quarter 2015 commentary.



Check out Bill Nygren latest stock trades

Baron Funds Comments on Amazon.com Inc. - Nov 10, 2015

Shares of Amazon.com, Inc. (NASDAQ:AMZN) rose after the company reported another better-than-anticipated quarter. Having recently disclosed that Amazon Web Services (AWS) was more profitable than many investors anticipated, the continued growth in both the retail and AWS business provided investors with greater confidence in the company’s future growth plans. With e-commerce representing around 10% of global retail sales, we believe the structural shift to online retailing represents a multi-year growth opportunity for Amazon.



From Baron Opportunity Fund's third quarter 2015 letter.



Check out Ron Baron latest stock trades

GAMCO Investors Comments on Amazon.com Inc. - Oct 19, 2015

Amazon.com Inc. (NASDAQ:AMZN)(3.6%) (AMZN – $511.89 – NASDAQ) opened on the World Wide Web in July 1995. The company is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire phone, Fire tablets, Fire TV and Amazon Echo are some of the products and services pioneered by Amazon.





From GAMCO's Growth Fund third quarter 2015 commentary.



Check out Mario Gabelli latest stock trades

Davis Funds Comments on Amazon.com Inc. - Sep 10, 2015

In the cases mentioned above, our different point of view is based on an analysis of accounting and financial statements. In other cases, our different view of a company’s earnings power is based on research about the company’s business model and culture. In such cases, the valuation adjustments we make depend on judgment and informed opinions rather than accounting facts. Perhaps the best example of such qualitative adjustments concerns our analysis of Amazon.com, a company that looks very expensive based on reported earnings but that we believe is attractively valued based on true earnings power.



We first met the management of Amazon (NASDAQ:AMZN) in 1998 and have followed the company closely since then. (We highly recommend Amazon’s first letter to shareholders, a copy of which can be found at http://media.corporate-ir.net/media_files/irol/97/97664/reports/Shareholderletter97.pdf.) Based on our research, Amazon’s willingness to spend aggressively in order to expand its business masks the company’s true earnings power, making the shares far cheaper than they appear at first glance. In other words, if the company chose to stop expanding into new markets (such as China), creating new businesses (such as Amazon Prime Video), designing new hardware (such as the Kindle tablet), exploring long-term projects (such as drone delivery of orders), and developing new business lines (such as groceries), their profit margins would expand significantly. Moreover, even under this scaled-back scenario, the company would continue to grow at an above-average rate, as existing Amazon customers tend to increase their spending year after year. Although some shorter term investors might prefer a business plan where Amazon scaled back its investment to increase reported profits, we disagree. After all, this investment spending is overseen by the company’s principled and proven leader Jeff Bezos whose vision and foresight have made him one of the great value creators of all time. Amazon’s willingness to invest for the future is a point of differentiation that should increase shareholder value in the long term by widening the company’s lead over competitors and creating important new profit centers. One example of such value creation is Amazon Web Services, the world’s leading web hosting business. After many years of investing, this segment of Amazon’s business has become a new and important source of value that should generate almost $7 billion of revenue and more than $500 million of after-tax profit this year.



Beyond the math of value creation, Amazon’s willingness to forgo profits today in order to earn greater profits in the future is an enormous and rare cultural positive. More often, companies choose policies and practices that maximize current reported profits. As unusual as this long-term focus is, longtime followers of Amazon should not be surprised. After all, in his first letter to shareholders written in 1997, Jeff Bezos states, “When forced to choose between optimizing the appearance of our GAAP accounting and maximizing the present value of future cash flows, we’ll take the cash flows.” We could not agree more.



Whether considering our different view point on leading financial businesses, our optimism about natural gas or our estimate of the under­ lying profitability of a company like Amazon, our readiness to stand out from the herd and look different from the Index has served us well over the long term and should drive results in the years ahead.



From Chris Davis (Trades, Portfolio)' Davis New York Venture Fund Semi-Annual 2015 Letter.



Check out Chris Davis latest stock trades

Meridian Funds Comments on Amazon - Aug 31, 2015

Amazon (NASDAQ:AMZN) is the category killer in an industry that it invented: customer-centricity. Over the past 20 years, Amazon has made massive investments in technology to offer a personalized commerce experience. Amazon has also relentlessly invested in its vast distribution and fulfillment infrastructure to introduce a game-changing customer relationship, the Amazon Prime subscription membership with free two-day delivery. And the company continues to push the envelope with a variety of same day delivery options, ever shrinking the time gap from the order to physical delivery.





Amazon is also extending its customer-centric approach to the business-to-business B2B marketplace with Amazon Web Services. AWS is a cloud computing platform that provides businesses with fast, cheap and flexible access to computing power. AWS is used by both big (including really big) and small companies alike. As a business, AWS is big (over $7 billion in annual revenues), profitable (21% operating margin in Q2) and growing fast (AWS revenue could increase 65% this year) and it is large enough to positively skew all of Amazon into profitable growth. With Prime and AWS, Amazon has built $12 –



13 billion in annual, recurring subscription based revenues.



From Meridian Growth Fund’s annual letter.



Check out Meridian Funds latest stock trades

Baron Funds Comments on Amazon.com Inc. - Aug 24, 2015

Shares of Amazon.com, Inc. (NASDAQ:AMZN), our largest holding, rose 16.7% after the company reported better-than-anticipated operating results. As we suspected, Amazon Web Services was actually profitable (and meaningfully so) and the news was well received by investors who we believe were generally underweight the stock. With e-commerce representing around 10% of global retail sales, we believe the structural shift to online retailing represents a multi-year growth opportunity for Amazon.





From Baron Funds' second quarter 2015 commentary.



Check out Ron Baron latest stock trades

Bill Nygren Comments on Amazon - Jul 10, 2014

That brings me to our newest position, which will no doubt make some question our credentials as value investors: Amazon (AMZN).



Consensus forward earnings for Amazon are a little over a dollar. At the median forward P/E multiple, Amazon would be priced in the low $20s. So, even though the stock fell $124 from its January high of $408 to a May low of $284, its P/E ratio remained in nosebleed territory. But we have never believed the P/E ratio was the be-all and end-all for valuation. Amazon is a retailer – a very efficient retailer. When we compare stocks in the same industry, we often compare their market caps to their sales rather than their earnings. Since 2001, Amazon has generally traded at a cap-to-sales ratio of two to four times that of the average bricks-and-mortar retailer. Having fallen to just under two recently, one might say that, as an advantaged retailer, Amazon looks somewhat attractive.



But that metric misses an important change in Amazon’s business. Third-party sales (sales on amazon.com where the seller is not Amazon) have grown more rapidly than Amazon’s direct business. And on those transactions, accounting rules credit only Amazon's commission as revenue. So if you buy a $100 item on amazon.com from a third party, Amazon is only allowed to show about $13 of revenue, nearly all of which is gross profit. For third-party sales, Amazon is effectively functioning as the mall owner, collecting a percentage of sales as rent. Amazon earns less gross profit on that sale than an average retailer would, but it is also a much lower risk endeavor. For that reason, we think a dollar of third-party sales should be worth about the same as a dollar that Amazon sells directly.



It gets interesting when we adjust our cap-to-sales ratio comparison to include estimated gross third-party sales. Instead of selling at twice the ratio to sales of the average bricks–and-mortar retailer, Amazon is selling at only 80%. So, relative to gross sales, Amazon's stock would have to increase 25% to be priced consistent with the very companies whose survival Amazon is threatening. On that metric, Amazon has never been cheaper.



Should Amazon sell at a discount on sales? The answer largely rests on what Amazon could earn if it wasn’t investing so heavily for future growth. For most asset heavy businesses, growth investment is primarily on the balance sheet, and is slowly expensed on the income statement as depreciation throughout its useful life. In an asset–lite business like Amazon, however, most growth spending gets directly expensed to the income statement, creating a much larger immediate reduction in income. We believe that if Amazon sharply curtailed its growth spending so that it only grew at the rate other retailers grow, it could produce similar operating margins. But we don't want them to do that. We believe that management is maximizing value by investing heavily for super-normal organic growth. So, yes, Amazon is a rapidly growing business. But at this price, we believe it is also a value stock.



From Bill Nygren (Trades, Portfolio)'s Oakmark Fund second quarter 2014 letter.



Check out Bill Nygren latest stock trades

Baron Funds Comments on Amazon.com - May 29, 2014

Shares of Amazon.com, Inc. (NASDAQ:AMZN), the world's largest online retailer, fell 16% due to weaker than anticipated revenue growth in the fourth quarter of 2013. We expect the company to improve growth rates going forward. Amazon continues to expand into large new growth markets, including apparel, consumer product goods, consumer electronics, grocery, and Amazon Web Services. Given that e-commerce still represents less than 10% of retail sales today, we believe that the ongoing shift to online retailing represents a multi-year growth opportunity from which Amazon should benefit.





From Baron Funds' first quarter 2014 commentary.



Check out Ron Baron latest stock trades

Top Ranked Articles about Amazon.com Inc

Robert Olstein: Buy Bed Bath And Beyond, Stay Away From Netflix and Amazon Value investor recommends domestic retailer but avoids tech darlings
Robert Olstein is the chairman and chief investment officer of the Olstein Financial Alert Fund. Olstein is an expert on financial disclosure and reporting. He picks stocks based on a review of the fundamentals and is notorious for not talking to management. Management is never going to tell him when things aren’t great so he doesn’t bother. Instead he focuses on assessing the company's financial strength and downside risk. Read more...
2 Stocks Super Investors Are Buying Gurus are allocating large portions of portfolio to Apple and Amazon
GuruFocus provides tools and screens to look at 13-F filings in the aggregate and discover lots of information about the famous gurus of value investing. I used the aggregated portfolio tool to sort guru holdings on combined weighting percentage. This shows us which stocks value investment gurus have allocated the most funds to. Read more...
Is Jeff Bezos' Letter Better Than Warren Buffett’s? Dive into Bezos' latest article and the business insight that he brings
Jeff Bezos annual letter for Amazon (NASDAQ:AMZN) is out, and although it's not as widely read as Buffett's annual letter, it's still a must read for any business-minded person or Amazon investor. Read more...
Leading Stocks of Last Year Decline Year to Date An upside down year
Last year many investors holding value stocks were bruised by losses, while growth investors outperformed them for the year and on a five-year average annual basis, using the iShares S&P 500 Growth and Value ETFs as a rough measure. Though it is unsure what it will mean for investors sticking to value, at least in the first few months of this year some of the leading high-growth, high-valuation tech names they mainly shunned have fallen off their pedestal. Read more...
Steve Mandel Boosts Nike, Visa, Amazon Top increased stakes by the guru during 4th quarter
Steve Mandel (Trades, Portfolio) is the founder of Lone Pine Capital, a long-short equity money manager, which he started in 1997. During the last quarter of 2015, he increased his stakes in many stocks, such as the as following: Read more...
Meridian Funds Comments on Amazon.com Inc. Guru stock highlight
Amazon.com, Inc. (NASDAQ:AMZN) continues to move the needle on many fronts, including cloud computing. Amazon Web Services (AWS), which rents computing power and storage for corporate customers, is the leader in this space and continues to strengthen its competitive advantage through major feature releases, more data centers, and price cuts for several of its services. Although AWS recently announced annual revenue growth of approximately 60% and a profit margin of greater than 50%, we believe this segment of the business has much more room to grow. Another positive development for the stock was a significant shift in consumer buying trends during the holiday season as more people chose to do their shopping in the e-commerce marketplace rather than in bricks-and-mortar stores. This shift helped Amazon exceed earning expectations during the third quarter. Read more...
Cohen Becomes Advance Auto Parts' Leading Guru Shareholder Guru also sells nearly all of holding in Amazon.com in 4th quarter
Steven Cohen (Trades, Portfolio), founder and manager of SAC Capital Advisors, became Advance Auto Parts’ (NYSE:AAP) leading shareholder among the gurus with his fourth-quarter purchase of a 1,454,700-share stake in the stock. Read more...
Oakmark Fund Buys Ally Financial, Sells Amazon Ally's internal improvements will offset industry pressures, Nygren says
Oakmark Fund portfolio manager Bill Nygren (Trades, Portfolio) stayed true to the firm’s concentrated approach during the fourth quarter, initiating one new holding and selling three others that had reached the fund’s estimate of true value. Read more...
Eddie Lampert Comments on Amazon Guru stock highlight
Companies like Amazon (NASDAQ:AMZN) were able to grow rapidly without having to collect sales tax, while traditional retail companies had the dual disadvantages of having to report profits and to collect sales tax from their customers. While it is true that Amazon’s customers, by law, were required to calculate and pay sales tax in states that required it, many commentators conveniently ignored these laws in their coverage of Amazon and the state and local authorities did little to enforce the existing laws. The consequence? We are now seeing more and more retail stores shut down and the tax base of many municipalities eroding due to the hollowing out of the sales tax base as the Wall Street Journal recently reported. Even the largest and most successful retailers, like Walmart Read more...
Now Is the Moment to Catch the FANG Selling Train Drop Facebook, Amazon, Netflix and Google since they should correct downward
Advisors where yelling about selling FANG — Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX) and Google (NASDAQ:GOOG), now known as Alphabet — during the last days of 2015. Even though the four are rated AAA stock with the heaviest gains for the last eight years, due to the Fed-nurtured low interest bubbles, they took some heavy losses at the beginning of the year with the market correction. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 271.44
AMZN's P/E(ttm) is ranked lower than
99% of the 710 Companies
in the Global Specialty Retail industry.

( Industry Median: 19.06 vs. AMZN: 271.44 )
Ranked among companies with meaningful P/E(ttm) only.
AMZN' s P/E(ttm) Range Over the Past 10 Years
Min: 25.85  Med: 71.88 Max: 3679.86
Current: 271.44
25.85
3679.86
Forward P/E 59.52
AMZN's Forward P/E is ranked lower than
98% of the 173 Companies
in the Global Specialty Retail industry.

( Industry Median: 15.92 vs. AMZN: 59.52 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 271.44
AMZN's PE(NRI) is ranked lower than
99% of the 709 Companies
in the Global Specialty Retail industry.

( Industry Median: 18.98 vs. AMZN: 271.44 )
Ranked among companies with meaningful PE(NRI) only.
AMZN' s PE(NRI) Range Over the Past 10 Years
Min: 25.94  Med: 72.17 Max: 3732.43
Current: 271.44
25.94
3732.43
Price/Owner Earnings (ttm) 37.75
AMZN's Price/Owner Earnings (ttm) is ranked lower than
72% of the 424 Companies
in the Global Specialty Retail industry.

( Industry Median: 20.23 vs. AMZN: 37.75 )
Ranked among companies with meaningful Price/Owner Earnings (ttm) only.
AMZN' s Price/Owner Earnings (ttm) Range Over the Past 10 Years
Min: 12.59  Med: 32.70 Max: 55.52
Current: 37.75
12.59
55.52
P/B 21.50
AMZN's P/B is ranked lower than
98% of the 914 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.63 vs. AMZN: 21.50 )
Ranked among companies with meaningful P/B only.
AMZN' s P/B Range Over the Past 10 Years
Min: 6.46  Med: 14.80 Max: 3432.86
Current: 21.5
6.46
3432.86
P/S 2.92
AMZN's P/S is ranked lower than
87% of the 920 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.65 vs. AMZN: 2.92 )
Ranked among companies with meaningful P/S only.
AMZN' s P/S Range Over the Past 10 Years
Min: 0.89  Med: 2.00 Max: 3.14
Current: 2.92
0.89
3.14
PFCF 43.28
AMZN's PFCF is ranked lower than
77% of the 368 Companies
in the Global Specialty Retail industry.

( Industry Median: 18.26 vs. AMZN: 43.28 )
Ranked among companies with meaningful PFCF only.
AMZN' s PFCF Range Over the Past 10 Years
Min: 15.41  Med: 41.98 Max: 509.65
Current: 43.28
15.41
509.65
POCF 26.48
AMZN's POCF is ranked lower than
81% of the 486 Companies
in the Global Specialty Retail industry.

( Industry Median: 11.61 vs. AMZN: 26.48 )
Ranked among companies with meaningful POCF only.
AMZN' s POCF Range Over the Past 10 Years
Min: 12.37  Med: 26.43 Max: 40.21
Current: 26.48
12.37
40.21
EV-to-EBIT 150.36
AMZN's EV-to-EBIT is ranked lower than
96% of the 729 Companies
in the Global Specialty Retail industry.

( Industry Median: 13.59 vs. AMZN: 150.36 )
Ranked among companies with meaningful EV-to-EBIT only.
AMZN' s EV-to-EBIT Range Over the Past 10 Years
Min: 15.3  Med: 53.30 Max: 2797.9
Current: 150.36
15.3
2797.9
EV-to-EBITDA 36.70
AMZN's EV-to-EBITDA is ranked lower than
89% of the 765 Companies
in the Global Specialty Retail industry.

( Industry Median: 10.83 vs. AMZN: 36.70 )
Ranked among companies with meaningful EV-to-EBITDA only.
AMZN' s EV-to-EBITDA Range Over the Past 10 Years
Min: 11.9  Med: 33.50 Max: 50.7
Current: 36.7
11.9
50.7
PEG 17.10
AMZN's PEG is ranked lower than
94% of the 306 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.88 vs. AMZN: 17.10 )
Ranked among companies with meaningful PEG only.
AMZN' s PEG Range Over the Past 10 Years
Min: 0.83  Med: 2.69 Max: 192.69
Current: 17.1
0.83
192.69
Shiller P/E 593.59
AMZN's Shiller P/E is ranked lower than
99% of the 231 Companies
in the Global Specialty Retail industry.

( Industry Median: 21.19 vs. AMZN: 593.59 )
Ranked among companies with meaningful Shiller P/E only.
AMZN' s Shiller P/E Range Over the Past 10 Years
Min: 146.97  Med: 261.02 Max: 4615.67
Current: 593.59
146.97
4615.67
Current Ratio 1.08
AMZN's Current Ratio is ranked lower than
75% of the 889 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.56 vs. AMZN: 1.08 )
Ranked among companies with meaningful Current Ratio only.
AMZN' s Current Ratio Range Over the Past 10 Years
Min: 1.07  Med: 1.35 Max: 3.09
Current: 1.08
1.07
3.09
Quick Ratio 0.77
AMZN's Quick Ratio is ranked lower than
55% of the 889 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.85 vs. AMZN: 0.77 )
Ranked among companies with meaningful Quick Ratio only.
AMZN' s Quick Ratio Range Over the Past 10 Years
Min: 0.75  Med: 1.07 Max: 2.89
Current: 0.77
0.75
2.89
Days Inventory 42.41
AMZN's Days Inventory is ranked higher than
77% of the 887 Companies
in the Global Specialty Retail industry.

( Industry Median: 88.17 vs. AMZN: 42.41 )
Ranked among companies with meaningful Days Inventory only.
AMZN' s Days Inventory Range Over the Past 10 Years
Min: 31.84  Med: 38.51 Max: 47.23
Current: 42.41
31.84
47.23
Days Sales Outstanding 16.32
AMZN's Days Sales Outstanding is ranked lower than
63% of the 716 Companies
in the Global Specialty Retail industry.

( Industry Median: 13.00 vs. AMZN: 16.32 )
Ranked among companies with meaningful Days Sales Outstanding only.
AMZN' s Days Sales Outstanding Range Over the Past 10 Years
Min: 13.6  Med: 18.44 Max: 23.37
Current: 16.32
13.6
23.37
Days Payable 72.83
AMZN's Days Payable is ranked higher than
81% of the 717 Companies
in the Global Specialty Retail industry.

( Industry Median: 51.17 vs. AMZN: 72.83 )
Ranked among companies with meaningful Days Payable only.
AMZN' s Days Payable Range Over the Past 10 Years
Min: 80.3  Med: 102.93 Max: 110.64
Current: 72.83
80.3
110.64

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 28.92
AMZN's Price/Tangible Book is ranked lower than
98% of the 850 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.87 vs. AMZN: 28.92 )
Ranked among companies with meaningful Price/Tangible Book only.
AMZN' s Price/Tangible Book Range Over the Past 10 Years
Min: 10.58  Med: 24.49 Max: 257.65
Current: 28.92
10.58
257.65
Price/Projected FCF 6.16
AMZN's Price/Projected FCF is ranked lower than
90% of the 444 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.19 vs. AMZN: 6.16 )
Ranked among companies with meaningful Price/Projected FCF only.
AMZN' s Price/Projected FCF Range Over the Past 10 Years
Min: 1.7  Med: 3.64 Max: 246.06
Current: 6.16
1.7
246.06
Price/DCF (Earnings Based) 25.37
AMZN's Price/DCF (Earnings Based) is ranked lower than
100% of the 91 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.18 vs. AMZN: 25.37 )
Ranked among companies with meaningful Price/DCF (Earnings Based) only.
N/A
Price/Median PS Value 1.46
AMZN's Price/Median PS Value is ranked lower than
76% of the 750 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.00 vs. AMZN: 1.46 )
Ranked among companies with meaningful Price/Median PS Value only.
AMZN' s Price/Median PS Value Range Over the Past 10 Years
Min: 0.58  Med: 1.20 Max: 12.54
Current: 1.46
0.58
12.54
Price/Peter Lynch Fair Value 21.27
AMZN's Price/Peter Lynch Fair Value is ranked lower than
99% of the 186 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.62 vs. AMZN: 21.27 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
AMZN' s Price/Peter Lynch Fair Value Range Over the Past 10 Years
Min: 1.35  Med: 3.34 Max: 33.32
Current: 21.27
1.35
33.32
Price/Graham Number 27.53
AMZN's Price/Graham Number is ranked lower than
100% of the 613 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.41 vs. AMZN: 27.53 )
Ranked among companies with meaningful Price/Graham Number only.
AMZN' s Price/Graham Number Range Over the Past 10 Years
Min: 0.88  Med: 9.30 Max: 44.62
Current: 27.53
0.88
44.62
Earnings Yield (Greenblatt) (%) 0.70
AMZN's Earnings Yield (Greenblatt) (%) is ranked lower than
76% of the 918 Companies
in the Global Specialty Retail industry.

( Industry Median: 5.80 vs. AMZN: 0.70 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
AMZN' s Earnings Yield (Greenblatt) (%) Range Over the Past 10 Years
Min: 0.1  Med: 1.90 Max: 6.6
Current: 0.7
0.1
6.6
Forward Rate of Return (Yacktman) (%) 32.51
AMZN's Forward Rate of Return (Yacktman) (%) is ranked higher than
94% of the 507 Companies
in the Global Specialty Retail industry.

( Industry Median: 5.56 vs. AMZN: 32.51 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
AMZN' s Forward Rate of Return (Yacktman) (%) Range Over the Past 10 Years
Min: 0.8  Med: 26.20 Max: 62.6
Current: 32.51
0.8
62.6

More Statistics

Revenue(Mil) $113418
EPS $ 2.43
Beta1.65
Short Percentage of Float1.66%
52-Week Range $414.55 - 696.44
Shares Outstanding(Mil)470.84

Analyst Estimate

Dec16 Dec17 Dec18
Revenue(Mil) 129,470 154,560 184,760
EPS($) 7.54 11.08 20.82
EPS without NRI($) 7.54 11.08 20.82

Business Description

Industry: Retail - Apparel & Specialty » Specialty Retail
Compare:NYSE:BABA, NAS:EBAY, NAS:ORLY, NYSE:AZO, TSE:4755 » details
Traded in other countries:AMZO34.Brazil, AMZN.Chile, AMZ.Germany, AMZ N.Mexico, AMZN.Peru, AMZN.Switzerland, 0R1O.UK,
Amazon.com Inc was incorporated in July 1994 in the state of Washington. It was reincorporated in 1996 in the state of Delaware. The Company had completed its initial public offering in May 1997. It is an online retailer. The Company sells its products through its website. It also provides services such as advertising services and co-branded credit card agreements. It operates in two geographical segments: North America and International. The Company serves its consumers through its retail websites with respect to criteria such as selection, price and convenience. It has designed the websites to enable the sale of the products of the company and third parties across different product categories. Customers can access its websites directly and also through their own mobile websites and applications. The Company also manufactures and sells electronic devices. In addition, it offers Amazon Prime - an annual membership program that includes unlimited free shipping on different items, access to unlimited instant streaming of movies and TV episodes, and access to books to be borrowed and read for free on a Kindle device. It offers programs that enable sellers to sell their products on its websites and on their own branded websites, and offers to fulfill orders through them. The Company serves authors and independent publishers with Kindle Direct Publishing - an online platform that lets independent authors and publishers choose a percentage of their royalty option and make their books available in the Kindle Store, along with Amazon's own publishing arm Amazon Publishing. It also offers programs that allow authors, musicians, filmmakers, application developers and others to publish and sell content. The Company provides e-commerce and other services to businesses through commercial agreements, strategic alliances and business relationships. It also provides services such as web services, technology, computing, digital storage and other services, as well as enables sellers to offer products and services through its websites. The Company's competitors include physical-world retailers, publishers, vendors, distributors, manufacturers, and producers of its products, other online e-commerce and mobile e-commerce sites, including sites that sell or distribute digital content, media companies, web portals, comparison shopping websites, web search engines, and social networks, either directly or in collaboration with other retailers, companies that provide e-commerce services, including website development, fulfillment, customer service and payment processing. The Company is subject to general business regulations and laws, as well as regulations and laws specifically governing the Internet, e-commerce, electronic devices, and other services.
» More Articles for AMZN

Headlines

Articles On GuruFocus.com
Time to Invest in Apple Apr 29 2016 
1-800-Flowers.Com: Efforts Managed to Deliver Smiles Apr 28 2016 
Time to Load Up on Walmart Apr 28 2016 
New Guru Spiros Segalas Consistently Beat Market Over the Short and Long Term Apr 27 2016 
Robert Olstein: Buy Bed Bath And Beyond, Stay Away From Netflix and Amazon Apr 26 2016 
Einhorn Sells 75% of SunEdison Stake for Mere Pennies Apr 20 2016 
Could Netflix’s Revenue Double Next Year? Apr 20 2016 
The Way to Stay 'Long' in a Down Market – Un-Beta Part III Apr 18 2016 
7 of Mario Gabelli's Best Investment Ideas Apr 09 2016 
Chase Coleman Loses on Tech Stocks, Cuts Stake in Silicon Valley’s Pure Storage Apr 07 2016 

More From Other Websites
Saturday links: doing the job itself Apr 30 2016
Facebook, Amazon Capex Looks Juicy for Infinera, Applied Opto, Says Raymond James Apr 29 2016
Cramer: Amazon Is Great, but Not All Powerful Apr 29 2016
Cramer: Welcome to the Wackiest Earnings Season I Have Ever Seen Apr 29 2016
Cramer: Retail isn’t dead—millennials are changing the game Apr 29 2016
Cramer: Retail isn’t dead—millennials are changing the ga... Apr 29 2016
How Amazon's Netflix competitor could be a success without making any money — and what that means... Apr 29 2016
Amazon stock surges 10 percent on profit news, exec promises more video spending Apr 29 2016
[$$] Amazon Can Hit $750, Analyst Says Apr 29 2016
Iranian government officials who bought things on Amazon got their accounts suspended Apr 29 2016
US stocks hit by health care woes but avoid bigger losses Apr 29 2016
US stocks hit by health care woes but avoid bigger losses Apr 29 2016
This is what Amazon is doing with 60 truckloads of concrete in eastern N.C. Apr 29 2016
6 Cheap Stocks Goldman Sachs Knew Would Make You Money Apr 29 2016
Intermediate Term Market Trends Broken Apr 29 2016
Amazon becomes S&P 500's 7th biggest Apr 29 2016

Personalized Checklist

Checklist has been moved to "Checklist" tab.

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK