NASDAQ:AMZN
$117.78
(2/9 9:30AM)
+0.8%
| Open | $118.2 |
Mkt Cap | $51.9 Billion |
| High | $118.96 |
52Wk High | $145.91 |
| Low | $116.83 |
52Wk Low | $59.82 |
| Volume | 111,808 |
Avg Vol 10D | 18.0 Million |
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 2.91x and 1.19x respectively.
Utilizing this range we can see that AMZN’s current Price to Sales per share ratio of 2.13x is above its historical average only slightly. So, while not a major concern it is worth noting that from a value perspective AMZN does not look undervalued on a Price to Sales basis. However, were the Price to Sales ratio to drop by 3% (the historical average) then we would become more positive on this stock.
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 66.70 and a 29.12 low over the same period.
At its current price of $117.39, the Price to Cash Earnings ratio of 40.76 per share for AMZN is relatively attractive. At current profitability levels, a drop in share price would only improve our future expectations. Again, Cash Earnings is an incredibly valuable metric, and management at AMZN must continue on its generation to improve our overall outlook for the stock.
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.
More News Than Normal on AMZN from Fast Money
Something important is going on with AMZN today, as it is getting a lot of attention on business television and influential blogs.
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Learn About RazorWire?Undervalued or Overvalued? Fast Money Takes on AMZN's Valuation
Fast Money mentions some valuation metrics in regards to AMZN; have a read at what they think from Ockham's RazorWire.
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Learn About RazorWire?Analysts' Take on Amazon.Com, Incorporated Mentioned on Fast Money
Wall Street analysts can have a huge affect on stocks, and today Fast Money talked about an analysts' opinion in relation to AMZN.
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Learn About RazorWire?More News Than Normal on AMZN from Countdown to the Closing Bell
AMZN has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, AMZN has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on AMZN. The crowd at The Motley Fool does not like AMZN and believes that it will Underperform.
“… AMAZON. COM getting upgraded to college stewarts and web services, shares are not holding onto earlier gains. The internet transaction program, shares are less lumpy. …”
There is Significant News on AMZN:Among the Twenty Most Active Stocks in the News
We are observing a lot of attention being paid to AMZN in the news, so if you hold the stock you may want to take a look at what is going on.
The crowd at The Motley Fool does not like AMZN and believes that it will Underperform. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, AMZN has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on AMZN.
“… Meantime, AMAZON also getting an upgrade over at collins stewart which thinks too much is made of the ipod and think the kindle is strong and underestimated. Google up 1. 5%. …”
Investors Sentiment's Effect on Amazon.Com, Incorporated on Power Lunch
Power Lunch talked about the sentiment surrounding AMZN and the way they are perceived in the marketplace.
Amazon.Com, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; AMZN has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… Not bullish upgrades of AMAZON and home depot can bring the bulls to life. > > i'm michelle caruso-cabrera. Cit shares up 3%. …”
Analyst Opinion on AMZN the Topic for Squawk On The Street
When the television or blog talks about an analysts' opinion it could have a major impact on the stock.
Amazon.Com, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; AMZN has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… AMAZON, collin stewart upgrading from buy to hold. > > st. Jude medical. Goldman sachs down 1%. Walt disney and jpmorgan rating the company to a neutral. Better than it ... …”
Squawk On The Street: Discussion of Analysts and Amazon.Com, Incorporated
Analysts' opinions can often carry a lot of weight, especially when they make major news and are covered on Squawk On The Street.
Amazon.Com, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; AMZN has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… Analysts over at collins stewart upgrading AMAZON on that basis. They said the 15% pullback over the last few weeks makes this a good entry point for AMAZON and they think the ... …”
Amazon.Com, Incorporated EPS: A Hot Topic on Tech Trader Daily-Barron's
Tech Trader Daily-Barron's discussed earnings per share, which is one of the metrics we look at most closely. At Ockham, anytime earnings are discussed we must pay attention.
Amazon.Com, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; AMZN has received less coverage from the financial media in business television and blogs.
“… Collins Stewart analyst Sandeep Aggarwal this morning lifted his rating on AMAZON. COM (AMZN) to Buy from Hold, setting a price target of $150. The stock closed Friday at $117. ... …”
Amazon.Com, Incorporated News is Being Covered Right Now on Squawk On The Street
As always, the latest news on AMZN is available to Ockham clients through RazorWire, and it was mentioned recently on Squawk On The Street.
The Ockham valuation currently has a Fairly Valued stance on AMZN because it trades within the price range that we would expect given current market conditions and fundamentals. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Amazon.Com, Incorporated underperforming. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Amazon.Com, Incorporated has actually sunk a bit in comparison to the others.
“… electronic arts and their big ad. AMAZON may be the big boost this morning for the big caps t's getting an upgrade at colin …”