This Score-Card analysis of Amazon Inc (AMZN) 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 0% (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 +70% can be considered good.
The purpose of this analysis is purely informative.
Score-Card analysis of Amazon Inc (AMZN)
Summary
- 280 billion in Revenue (doubled in the last 3 years)
- 11.6 billion Net Income (+ 400% in the last 3 years)
- 250k shares bought by Hedge Funds in the last quarter
- Leap 7% in the last earnings report after destroying analyst expectations
Full description
Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS) segments. It sells merchandise and content purchased for resale from third-party sellers through physical and online stores.
The overall score of AMZN is 79,8% .
In the last 6 months, AMZN has overperformed the S&P500 index by 9,3% and analysts believe the company is undervalued by 12,7% .
In the last quarter, the company reported revenue of 87436 million, up by 20,8% compared to the same quarter 12 months earlier. Revenue TTM (Trailing-12-Months) are equal to 280521 million, up by 106,3% in the last 3 years.
AMZN reported an operating income of 3879 million in the last quarter, an improvement by 2,5% compared to the same quarter 12 months earlier, also reporting a reduction by -15,2% in the operating margin. Considering the sum of the last four quarters (TTM), AMZN reports an operating income of 14540,0 Million , a growth by 247,3% compared to three years ago and an improvement by 68,4% in the operating margin.
AMZN reported a net income of 3268 million in the last quarter, an improvement by 13,9% compared to the same quarter 12 months earlier, also reporting an improvement by -5,7% in the net margin. The TTM net income is 11588 million , a growth by 388,7% compared to three years ago and the net margin has improved by 136,9% .
In the next quarter, analysts expect decrease in EPS (Earnings Per Share) by -9,0% and a growth in revenue by 21,1% . Furthermore, they expect an annual growth by AMZN EPS by 30,1% for the next 5 years.
In the last quarter, AMZN reported better EPS than analysts’ expectations and the stock price reacted by increasing by 7,4% .
Finally, in the last quarter the Hedge Funds have increased their positions by 246.2k shares.
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*The comparison with the S&P 500 index (black line) is visible inside the graph.
*Information updated to the last quarterly report available
*Data in Millions of Dollars
*Data from zacks.com, tipranks.com, reuters.com, finance.yahoo.com
*Company information from finance.yahoo.com
DISCLAIMER: The information in this blog post represents my own analysis/opinions and does not contain a recommendation for any particular security or investment. Stocks trading involves substantial risk of loss and is not suitable for every investor. Trade responsibly.
