Amazon Inc. (AMZN): Score-Card Analysis

This analysis attributes an Overall Score to a company by analyzing several aspects that I consider to be among the most important.

In summary, a company to have an overall score close to 100% must have the following characteristics:

  • Report high growth rates in the last 3 years (and in the last quarter) in terms of Revenue, Gross Profit, Operating Income and Net Income. Furthermore, it must operate with high and improving margins in recent years.
  • Analysts expect Earnings Per Share (EPS) and revenues to grow in the short term (in the next quarter) and in the medium to long term (in the next 5 years). Moreover, they expect the company to be undervalued at current prices and in the last quarter their EPS expectations must have been beaten with a consequent rise in share prices.
  • The stock price of the company must have outperformed the S&P 500 index and in the last 3 months the Hedge Funds and Insiders bought shares in the company.

The overall score ranges from -100% (if the characteristics listed above are all very negative) to +100% and it is unlikely that there will be a company with a +100% score because the requirements for achieving this score are very high, however a score higher than +40% can be considered good.

This analysis alone is not enough to decide whether or not to invest in a company because it does not provide indications on the timing of entry, but it is a good starting point.


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Amazon Inc. (AMZN)


Summary

  • Overall Score: +31%
  • Sales by Hedge Funds and Insiders are not good news
  • Analysts remain optimistic in the medium to long term, indicating a potential upside of + 25%
  • Distance from the maximums reached in July 2019: -10.77%
  • YTD performance: +19.51%

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Full description

The overall score of AMZN is +31% .

In the last 6 months, AMZN has underperformed the S&P500 index by -1,8% and analysts believe the company is undervalued by 25,0% .

In the last quarter, the company reported revenues of 63404 million, up by 19,9% compared to the same quarter 12 months earlier. Revenue TTM (Trailing-12-Months) are equal to 252063 million, up by 135,6% in the last 3 years.


AMZN reported an operating income of 3084 million in the last quarter, an improvement of 3,4% compared to the same quarter 12 months earlier, also reporting a reduction by -13,8% in the operating margin. Considering the sum of the last four quarters (TTM), AMZN reports an operating income of 15014,0 Million , a growth of 572,4% compared to three years ago and an improvement of 185,4% in the operating margin.


AMZN reported a net income of 2625 million in the last quarter, an improvement of 3,6% compared to the same quarter 12 months earlier, also reporting a reduction by -13,6% in the net margin. The TTM net income is 11939 million , a growth of 1903,2% compared to three years ago and the net margin has improved by 750,4% .

In the next quarter, analysts expect decrease in EPS (Earnings Per Share) of -21,0% and a growth in revenue of 21,5% . Furthermore, they expect an annual growth of AMZN EPS by 83,0% for the next 5 years.

In the last quarter, AMZN reported worse EPS than analysts’ expectations and the stock price reacted by decreasing by -1,6% .

Finally, in the last 3 months the Hedge Funds have decreased their positions by 177.8k shares. The Insiders have sold shares worth $2.8b .


Sources & additional info

*Data updated to the last quarterly report available
*Data in Millions of Dollars
*Data from zacks.com, tipranks.com, reuters.com, finance.yahoo.com


This analysis gives you a general idea of whether a company is good or not, but you may also be interested in finding potential entry points, so I am waiting for you here to know about the best chart patterns of today.


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DISCLAIMER: The information in this blog post represents my own analysis/opinions and does not contain a recommendation for any particular security or investment.