week4 assign FIN
financial growth and sustainability
amazon.com
(AMZN)
Gabrielle Zephirin
FIN/571
10/19/20
1
key performance indicators
Sales and Revenue
Profitability
Valuation Metrics
Active User Base
(McDaniel, 2018)
2
Cash flow from operations
In three months from march to June 2020, Amazon.com had a net income from the continuing operations amounting to $5,243 million.
Amazon.com’s depreciation, depletion, and amortization was $5,748 Million.
The change in working capital was $7,036 Million.
Deferred tax cash flow was $465 Million.
The discontinued operations cash flow was $0 million.
Compensation based on stock was $2,601 Million.
The company’s cash flow from others was $-487 Million.
For the three months, Amazon.com’s cash flow from operations was $20,606 Million.
("Amazon.com Cash Flow from Operations | AMZN - GuruFocus.com," 2020)
3
Price-to-earnings ratio
As of the 14th October 2020, Amazon.com’s PE ratio was 132.37 ("Amazon PE Ratio 2006-2020 | AMZN,” 2020).
In 14th October 2020, Amazon’s TTM dividend pay out was $0.00 while the dividend yield was 0.00% ("Amazon - 49 Year Dividend History | AMZN," 2020).
Amazon’s current Earnings Per Share is 26.04 X, a 97.32% increase yearly to $10.30 ("Amazon EPS - Earnings per Share 2006-2020 | AMZN," 2020).
Stock dividends and yield
Earnings per share ratio
4
Revenue estimates for the next 12 months
| Revenue Estimate | Current Quarter (September 2020) | Next Quarter (December 2020) | Current Year (2020) | Next Year (2021) |
| No. of analysts | 39 | 39 | 46 | 46 |
| Average estimate | 92.48B | 111.41B | 368.88B | 436.32B |
| Low estimate | 90.07B | 104.16B | 359.41B | 383.51B |
| High estimate | 95.65B | 116.07B | 380.76B | 477.82B |
| Year ago sales | 69.98B | 87.44B | 280.52B | 368.88B |
| Sales growth (Year estimate) | 32.20% | 27.40% | 31.50% | 18.30% |
("Amazon.com, Inc. (AMZN)," 2020)
Revenue from the previous 3 years
| Amazon.com Annual Revenue (Millions of US Dollars) | |
| 2019 | $280,522 |
| 2018 | $232,887 |
| 2017 | $177,866 |
("Amazon Revenue 2006-2020 | AMZN," 2020)
cash flows statement and identify net cash
| Cash Flow Statement (US$ in millions) | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 |
| Net cash provided by operating activities | 38,514 | 30,723 | 18,434 |
| Net cash used in investing activities | (24,281) | (12,369) | (27,819) |
| Net cash provided by (used in) financing activities | (10,066) | (7,686) | 9,860 |
| Net income | 11,588 | 10,073 | 3,033 |
("Amazon.com Inc. (NASDAQ:AMZN) | Cash Flow Statement," 2020)
Amazon’s Average trade volume
| Period | Average Volume |
| 5-Day | 5714017 |
| 20-Day | 5294019 |
| 50-Day | 4826096 |
| 100-Day | 4821402 |
| 200-Day | 5094237 |
| Year-to-Date | 5094237 |
("AMZN - Amazon.com Stock Technical Analysis - Barchart.com," 2020)
52-week high
3,336.52 USD as of 15th October 2020 ("AMZN Stock | AMAZON Stock Price Today | Markets Insider," 2020).
Amazon.com’s stock price reached the new 52-week high during the trading on 24th August 2020 as the stock traded as $3,361 ("AMZN Stock Forecast, Price & News (Amazon.com)," 2020).
3754.260 USD ("Amazon Stock Forecast: up to 3754.260 USD! - AMZN Stock Price Prediction, Long-Term & Short-Term Share Revenue Prognosis with Smart Technical Analysis," 2020)
Current stock price
1-year estimated stock price
Analysts’ recommendations for Amazon’s stock
A STRONG BUY according to recommendations of 18 analysts for Amazon with an average target price of $3763.71, an estimated high of $4500 and an estimated low of $3400.
("AMZN Analyst Research," 2020)
Amazon.com, Inc. market cap
As of October 2020, Amazon had a market cap of $1.685 T making it the worlds third most valuable country per the market cap.
("Amazon (AMZN) - Market capitalization," 2020)
Relationship of amazon’s stock price to price-to-earnings ratio
Amazon’s PE illustrates a high stock price in the light of the earnings performance.
What market cap means to amazon.com
Amazon.com, Inc has a large market cap thus it is exposed to less risk from the financial resources in case of a downturn.
Evaluation of amazon’s trends in stock price, dividend pay out, and total stockholders’ equity
Amazon’s stock appears to be trading around fair price regarding its current valuation metrics and the forecasted revenue growth.
Amazon’s dividend pay out is zero meaning that the company does not pay dividends. The company is using all of its available funds to grow the business.
For the quarter that ended on June 30, 2020, Amazon had a shareholder equity of $73.728B, an annual increase of 38.95%.
The current global condition with the Corona Virus pandemic, Amazon has gained more profits and expanded market share as many people depend on its delivery services and online market for shopping.
According to the financial analysis of Amazon.co, the organization will meet its financial goals, gain more growth and sustainability.
Amazon’s stock is on a predicted strong buy thus a recommendation to trade on the stock is a great idea given its market growth rate.
References
Amazon (AMZN) - Market capitalization. Companiesmarketcap.com. (2020). Retrieved 15 October 2020, from https://companiesmarketcap.com/amazon/marketcap/.
Amazon - 49 Year Dividend History | AMZN. Macrotrends.net. (2020). Retrieved 15 October 2020, from https://www.macrotrends.net/stocks/charts/AMZN/amazon/dividend-yield- history#:~:text=Historical%20dividend%20payout%20and%20yield%20for%20Amazon%20%28AMZN%29,Amazon%20as%20of%20October%2008%2C%202 020%20is%200.00%25.
Amazon EPS - Earnings per Share 2006-2020 | AMZN. Macrotrends.net. (2020). Retrieved 15 October 2020, from https://www.macrotrends.net/stocks/charts/AMZN/amazon/eps-earnings-per-share-diluted.
Amazon PE Ratio 2006-2020 | AMZN. Macrotrends.net. (2020). Retrieved 15 October 2020, from https://www.macrotrends.net/stocks/charts/AMZN/amazon/pe- ratio.
Amazon Revenue 2006-2020 | AMZN. Macrotrends.net. (2020). Retrieved 15 October 2020, from https://www.macrotrends.net/stocks/charts/AMZN/amazon/revenue.
Amazon Stock Forecast: up to 3754.260 USD! - AMZN Stock Price Prediction, Long-Term & Short-Term Share Revenue Prognosis with Smart Technical Analysis. Walletinvestor.com. (2020). Retrieved 15 October 2020, from https://walletinvestor.com/stock-forecast/amzn-stock-prediction.
Amazon.com Cash Flow from Operations | AMZN - GuruFocus.com. Gurufocus.com. (2020). Retrieved 15 October 2020, from https://www.gurufocus.com/term/Cash+Flow+from+Operations/AMZN/Cash-Flow-from-Operations/Amazon.com.
Amazon.com Inc. (NASDAQ:AMZN) | Cash Flow Statement. Stock Analysis on Net. (2020). Retrieved 15 October 2020, from https://www.stock-analysis- on.net/NASDAQ/Company/Amazoncom-Inc/Financial-Statement/Statement-of-Cash-Flows.
Amazon.com, Inc. (AMZN). Finance.yahoo.com. (2020). Retrieved 15 October 2020, from https://finance.yahoo.com/quote/AMZN/analysis/.
AMZN - Amazon.com Stock Technical Analysis - Barchart.com. Barchart.com. (2020). Retrieved 15 October 2020, from https://www.barchart.com/stocks/quotes/AMZN/technical-analysis.
AMZN Analyst Research. Nasdaq.com. (2020). Retrieved 15 October 2020, from https://www.nasdaq.com/market-activity/stocks/amzn/analyst-research.
AMZN Stock Forecast, Price & News (Amazon.com). Marketbeat.com. (2020). Retrieved 15 October 2020, from https://www.marketbeat.com/stocks/NASDAQ/AMZN/?utm_source=404Redirect&utm_medium=404Redirect.
AMZN Stock | AMAZON Stock Price Today | Markets Insider. markets.businessinsider.com. (2020). Retrieved 15 October 2020, from https://markets.businessinsider.com/stocks/amzn-stock.
McDaniel, D. (2018). The 4 Critical KPIs to Keep Your Amazon Business Healthy. Web Retailer. Retrieved 15 October 2020, from https://www.webretailer.com/b/amazon-business-kpis/.
Thank you
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