Fundamental and technical analysis of ''American nightmare''...

2021년 11월 29일

Fundamental analysis
1. Valuation: The company is expensive based on almost all valuation metrics such as PE or PS, however the guru focus model estimates that the company is ‘’fairly valued’’, while the 2 stage free cash flow model estimates that the fair value of AMZN share price should be around $5,500.

2. Growth: AMZN remains a solid growth story. Analytics at wall street forecast both earnings and revenue to grow at a double digit pace in the upcoming years.

3. Profitability: The profitability metrics of the company are good. In addition AMZN is extremely cash rich and the CAPEX/Sales ratio (12.43%) is well above sector median (2.42%).

4.Financial position: Excellent. Debt and interest payments are well covered.

5. ESG rating: BBB or average. There is definitely some room for improvement in this space.

6. Dividend & Buyback: AMZN is not paying dividends to its’ shareholders and doesn’t repurchases its’ common stock at the moment.

Technical analysis:
The stock remains in the uptrend and finally the share price broke above 2900-3500 consolidation zone. Bulls will be very supportive at around 3350-3500 price in my opinion.