Amazon Operating Margin

AMZN -  USA Stock  

USD 3,126  273.12  9.57%

Amazon Inc fundamentals help investors to digest information that contributes to Amazon's financial success or failures. It also enables traders to predict the movement of Amazon Stock. This fundamental analysis module provides a way for investors to measures Amazon's intrinsic value by examining all of its available economic and financial indicators and drivers, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Amazon stock. Please note, this module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.

Amazon Operating Margin 

 
Refresh
Operating Margin is expected to rise to 5.76 this year.

Amazon Operating Margin Analysis

Amazon's Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Amazon Operating Margin

5.76Share
Operating Margin 
 = 
Operating Income 
Revenue 
X
100 
More About Operating Margin | All Equity Analysis

Current Amazon Operating Margin

    
  13.19 %  
Most of Amazon's fundamental indicators, such as Operating Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Amazon Inc is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Amazon Operating Margin Driver Correlations

Understanding the fundamental principles of building solid financial models for Amazon is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Operating Margin. Since Amazon's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Amazon's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Amazon's interrelated accounts and indicators.

Amazon Operating Margin Historical Pattern

Today, most investors in Amazon Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Amazon's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's operating margin growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Amazon operating margin as a starting point in their analysis.
 Amazon Operating Margin 
Share
      Timeline 
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Compare to competition

Based on the recorded statements, Amazon Inc has an Operating Margin of 13.19%. This is 106.09% higher than that of the Consumer Cyclical sector and significantly higher than that of the Internet Retail industry. The operating margin for all United States stocks is notably lower than that of the firm.

Amazon Operating Margin Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Amazon's direct or indirect competition against its Operating Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Amazon could also be used in its relative valuation, which is a method of valuing Amazon by comparing valuation metrics of similar companies.
Amazon is currently under evaluation in operating margin category among related companies.

Amazon Current Valuation Drivers

We derive many important indicators used in calculating different scores of Amazon from analyzing Amazon's financial statements. These drivers represent accounts that assess Amazon's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Amazon's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee5.36 K15.56 K14.52 K16.39 K18.85 K15.56 K
Revenue Per Employee314.25 K359.67 K351.53 K296.62 K341.11 K492.94 K
Average Assets103.83 B141.7 B198.45 B270.73 B311.34 B335.92 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA16.13 B28.03 B37.35 B51.09 B58.76 B63.39 B
Earnings Before Interest Taxes and Depreciation Amortization USD16.13 B28.03 B37.35 B51.09 B58.76 B63.39 B
Earnings before Tax3.8 B11.27 B13.96 B24.19 B27.82 B30.02 B
Average Equity24.31 B37.28 B55.01 B78.79 B90.61 B97.77 B
Enterprise Value575.48 B738.68 B952.43 B1,685.76 B1,938.62 B2,091.67 B
Free Cash Flow8.31 B19.4 B25.82 B31.02 B35.67 B38.49 B
Invested Capital64.3 B81.1 B149.79 B222.06 B255.37 B275.53 B
Invested Capital Average50.16 B76.56 B143.57 B197.6 B227.24 B245.18 B
Market Capitalization563.54 B734.42 B916.15 B1,634.17 B1,879.29 B2,027.66 B
Tangible Asset Value117.96 B148.1 B210.49 B306.18 B352.1 B379.9 B
Working Capital2.31 B6.71 B8.52 B6.35 B7.3 B6.01 B

Amazon Fundamentals

About Amazon Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Amazon Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Amazon using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Amazon Inc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2022
Operating Margin 5.34  5.76 
Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. Amazon.com, Inc. was founded in 1994 and is headquartered in Seattle, Washington. Amazon operates under Internet Retail classification in the United States and is traded on NASDAQ Exchange. It employs 1468000 people.

Amazon Investors Sentiment

The influence of Amazon's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Amazon. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Amazon Implied Volatility

    
  49.28  
Amazon's implied volatility exposes the market's sentiment of Amazon Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Amazon's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Amazon stock will not fluctuate a lot when Amazon's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Amazon in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Amazon's short interest history, or implied volatility extrapolated from Amazon options trading.

Current Sentiment - AMZN

Amazon Inc Investor Sentiment

Majority of Macroaxis users are presently bullish on Amazon Inc. What is your sentiment towards investing in Amazon Inc? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
Skip

Pair Trading with Amazon

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Amazon position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Amazon will appreciate offsetting losses from the drop in the long position's value.

Amazon Pair Correlation

Equities Pair Trading Analysis

Correlation analysis and pair trading evaluation for Amazon and EBay Inc. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
Run Pair Correlation  
Please continue to Amazon Piotroski F Score and Amazon Altman Z Score analysis. Note that the Amazon Inc information on this page should be used as a complementary analysis to other Amazon's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

Complementary Tools for Amazon Stock analysis

When running Amazon Inc price analysis, check to measure Amazon's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Amazon is operating at the current time. Most of Amazon's value examination focuses on studying past and present price action to predict the probability of Amazon's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Amazon's price. Additionally, you may evaluate how the addition of Amazon to your portfolios can decrease your overall portfolio volatility.
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Is Amazon's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Amazon. If investors know Amazon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Amazon listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Amazon Inc is measured differently than its book value, which is the value of Amazon that is recorded on the company's balance sheet. Investors also form their own opinion of Amazon's value that differs from its market value or its book value, called intrinsic value, which is Amazon's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Amazon's market value can be influenced by many factors that don't directly affect Amazon's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Amazon's value and its price as these two are different measures arrived at by different means. Investors typically determine Amazon value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Amazon's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.