Amazon.com Inc (AMZN, Financial), a leading player in the Retail - Cyclical industry, is currently trading at $132.17 with a market cap of $1.36 trillion. The stock has seen a gain of 3.06% today and a 2.08% increase over the past four weeks. In this article, we will delve into Amazon's GF Score of 94/100, which indicates the highest outperformance potential, and analyze its financial strength, profitability, growth, GF value, and momentum ranks.
Financial Strength Analysis
Amazon's Financial Strength rank stands at 6/10. This score is influenced by its interest coverage of 4.91, suggesting the company can comfortably meet its interest expenses. The debt to revenue ratio of 0.27 indicates a manageable level of debt. Furthermore, the Altman Z-Score of 3.95 suggests that Amazon is not in any immediate danger of bankruptcy. These factors collectively contribute to Amazon's decent financial strength rank.
Profitability Rank Analysis
The company's Profitability Rank is 8/10, reflecting a strong profitability profile. The operating margin of 2.54% and a Piotroski F-Score of 4 indicate a healthy operating efficiency and financial situation. The 5-year average operating margin trend of 0.80% suggests consistent profitability. Moreover, Amazon has maintained 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 robust growth in terms of revenue and profitability. The 5-year revenue growth rate of 23.80% and the 3-year revenue growth rate of 21.90% demonstrate a strong growth trajectory. The 5-year EBITDA growth rate of 23.20% further underscores the company's impressive growth profile.
GF Value Rank Analysis
The GF Value Rank of Amazon is 8/10, indicating that the stock is reasonably valued. This rank is determined by the price-to-GF-Value ratio, which takes into account historical multiples and an adjustment factor based on past returns, growth, and future business performance estimates.
Momentum Rank Analysis
Amazon's Momentum Rank is 10/10, reflecting strong price momentum. This rank is determined by the standardized momentum ratio and other momentum indicators, suggesting that the stock has a high potential for future gains.
Competitor Analysis
When compared to its competitors, Amazon's GF Score of 94 outperforms Alibaba Group Holding Ltd (BABA, Financial) and PDD Holdings Inc (PDD, Financial), both with a GF Score of 81, and closely matches MercadoLibre Inc (MELI, Financial) with a GF Score of 90. This comparison suggests that Amazon has a higher potential for outperformance in the future.
In conclusion, Amazon's high GF Score, strong financial strength, profitability, growth, GF value, and momentum ranks make it a compelling investment option. However, investors should also consider other factors such as market conditions, industry trends, and company-specific risks before making an investment decision.
