Amazon.com, Inc. (AMZN)
- 138.79 (USD)
(+2.6 %)
9/3/2010 4:00:00 PM
AMZN Stock Report
NASDAQ:
AMZN
138.79
(USD)
(2.6 %
)
09/03 4:00 PM
Open
136.89
Day's Range
136.63
-
139.5
52Wk Range
77.63 - 151.09
Mkt Cap
56.7 Billion
Vol/Avg
6590800/4.5 Million
Div/Yield
0.00%
Key Fundamentals
| Price (9/3/2010) | 138.79 |
|---|---|
| Volume (9/3/2010) | 6590800 |
| Last Close Price | 138.79 |
| 10 Day Average Volume | 4.5 Million |
| 13 Week Price Range | 106.01 - 130.81 |
| 52 Week Price Range | 77.63 - 151.09 |
| LTM Revenue | 28.7 Billion |
| Shares Outstanding (12/31/2009) | 447.8 Million |
| Market Capitalization | 56.7 Billion |
| Shares Held By Institutions | 30.0 Million |
| Institutional Holders | 1,053 |
| % Shares Held By Institutions | 67.16% |
| Earnings Per Share (EPS) | 2.08 |
| P/E Ratio | 54.9451 |
| Book Value Per Share | 13.0788 |
| Gross Margin | 22.64% |
| Annual Dividend | 0 |
| Dividend Yield | 0.00% |
| Beta | 1.179197 |
| Fiscal Year Ends | December |
About Amazon.com, Inc.
Amazon.com, Inc.is considered to operate in the Consumer Services sector. They specifically operate in the Online Retail business segment contained within the Retail - Online industry.
Amazon.com, Inc. was incorporated in Delaware. It opened its virtual doors on the World Wide Web in July 1995 and offers Earth's Biggest Selection. The Company seeks to be Earth's most customer-centric company for three primary customer sets: consumers, sellers, and developers. In addition, it generates revenue through co-branded credit card agreements and other marketing and promotional services, such as online advertising. The Company has organized its operations into two principal segments: North America and International. It serves consumers through its retail websites, and focus on selection, price, and convenience. The Company designs its websites to enable millions of unique products to be sold by its and by third parties across dozens of product categories. It also manufactures and sells the Kindle e-reader. It strive to offer its customers the lowest prices possible through low everyday product pricing and free shipping offers, including Amazon Prime, and to improve its operating efficiencies so that it can continue to lower prices for its customers. The Company also provides easy-to-use functionality, fast and reliable fulfillment, and timely customer service. It serves developers through Amazon Web Services, which provides access to technology infrastructure that developers can use to enable virtually any type of business. Its businesses are rapidly evolving and intensely competitive. The Company regard its trademarks, service marks, copyrights, patents, domain names, trade dress, trade secrets, proprietary technologies, and similar intellectual property as critical to its success, and it relies on trademark, copyright and patent law, trade-secret protection, and confidentiality and/or license agreements with its employees, customers, partners, and others to protect its proprietary rights.
Ockham's Rating/Recommendation Summary
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AMZN Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at AMZN through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 2.66x and 1.09x respectively.
Utilizing this range we can see that AMZN’s current Price to Sales per share ratio of 1.83x is somewhat below its historical weighted average by 3%. Given this level of sales per share, we suggest a neutral share price forecast. To the extent there is a further drop in the Price to Sales ratio from current levels, which would occur through some combination of increased sales per share or a decline in share price, we would only become more positive about the Price to Sales ratio outlook.
AMZN Cash Earnings
As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently AMZN is below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 8 years of cash earnings levels for AMZN to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 75.54 and a 32.82 low over the same period.
So what does a Cash Earnings ratio below the historical norm mean for AMZN? Generally, AMZN's investors have paid slightly higher stock prices for this level of Cash Earnings, which bodes well as a return to historical norms is statistically likely. However, it is never a guarantee that history gives us proper direction, particularly in fluctuating market cycles. So by utilizing a long term view and incorporating other areas of analysis (like Sales, Dividends, and management analysis), each investor can gain a more complete view of AMZN. Remember, that the average Cash Earnings level for AMZN has been 54.18, so the current Cash Earnings level of 48.10 is a positive in our view, but by no means is it overwhelming.
AMZN Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely. Although they may currently pay a dividend, our data source has no historical record of it for AMZN. Since we cannot apply our historical trend analysis to dividends for AMZN we have a neutral score for the dividend portion of our analysis.