Amazon.com Inc (AMZN, Financial), a leading player in the Retail - Cyclical industry, is currently trading at $142.75 with a market cap of $1.46 trillion. The stock has seen a gain of 10.74% today and a 9.85% increase over the past four weeks. According to GuruFocus, Amazon's GF Score is 94 out of 100, placing it in the highest outperformance potential category. This score is a comprehensive measure of a stock's performance potential, taking into account five key aspects: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank.
Financial Strength Analysis
Amazon's Financial Strength rank is 6/10. This score is derived from several factors, including the company's debt burden, debt to revenue ratio, and Altman Z-Score. Amazon's interest coverage is 4.91, indicating a manageable debt burden. Its debt to revenue ratio is 0.27, suggesting a healthy financial position. The Altman Z-Score of 3.97 further confirms the company's financial stability.
Profitability Rank Analysis
The company's Profitability Rank is 8/10, reflecting its strong profitability. The operating margin of 2.54% and a Piotroski F-Score of 4 indicate a robust profit margin. The trend of the operating margin over the past five years is 0.80%, suggesting consistent profitability. The company has also demonstrated profitability for 8 out of the past 10 years, further enhancing its profitability rank.
Growth Rank Analysis
Amazon's Growth Rank is a perfect 10/10, reflecting its strong growth potential. The company's 5-year revenue growth rate is 23.80%, and its 3-year revenue growth rate is 21.90%. The 5-year EBITDA growth rate is 23.20%, indicating a consistent increase in the company's earnings before interest, taxes, depreciation, and amortization.
GF Value Rank Analysis
The GF Value Rank of Amazon is 8/10, suggesting that the company is reasonably valued. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth.
Momentum Rank Analysis
Amazon's Momentum Rank is 9/10, indicating strong stock price performance. This rank is determined using the standardized momentum ratio and other momentum indicators, reflecting the stock's performance over the past 12 months.
Competitor Analysis
When compared to its main competitors, Amazon holds a strong position. Alibaba Group Holding Ltd (BABA, Financial) and PDD Holdings Inc (PDD, Financial) both have a GF Score of 83, while JD.com Inc (JD, Financial) has a GF Score of 72. This comparison further highlights Amazon's strong performance potential. For more details, please visit our competitors page.
In conclusion, Amazon's high GF Score, strong financial strength, profitability, growth, and momentum ranks, and reasonable valuation make it a compelling choice for investors. However, as always, investors should conduct their own thorough research before making investment decisions.
