Amazon Looks Amazing: Fool by Numbers
By
Anders Bylund
January 31, 2008
|
On Jan. 30, online retail veteran Amazon.com (Nasdaq: AMZN) released earnings for the 2007 fiscal year -- a period ended Dec. 31, 2007.
- If you're interested in the quarterly results, read our earnings take.
- 2006 was an off year for Amazon, as earnings took a dive after two years at higher than $350 million. The company is back to its profitable and cash-generating ways.
- Some of the recent growth comes from unique initiatives like the DRM-free digital music store and the warehouse-sharing Fulfillment By Amazon service. Adoption of Amazon Elastic Compute Cloud (EC2) and Amazon Simple Storage Service (S3) continues to grow. As an indicator of adoption, bandwidth utilized by these services in the fourth quarter 2007 was even greater than bandwidth utilized by all of Amazon.com's global websites combined.
- Despite its virtues, Amazon remains a lowly two-star CAPS stock. Is that an unfair rating? Maybe it's too generous? Weigh in with one thumb and two cents right here.
(Figures in millions, except per-share data)
Income Statement Highlights
|
FY 2007
|
FY 2006
|
Change
|
|
Sales
|
$14,835
|
$10,711
|
38.5%
|
|
Net Profit
|
$476
|
$190
|
150.5%
|
|
EPS
|
$1.12
|
$0.45
|
148.9%
|
|
Diluted Shares
|
424
|
424
|
0%
|
Get back to basics with the income statement.
Margin Checkup
|
FY 2007
|
FY 2006
|
Change*
|
|
Gross Margin
|
22.6%
|
22.9%
|
(0.3)
|
|
Operating Margin
|
4.4%
|
3.6%
|
0.8
|
|
Net Margin
|
3.2%
|
1.8%
|
1.4
|
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
FY 2007
|
FY 2006
|
Change
|
|
Cash + ST Invest.
|
$3,112
|
$2,019
|
54.1%
|
|
Accounts Rec.
|
$705
|
$399
|
76.7%
|
|
Inventory
|
$1,200
|
$877
|
36.8%
|
|
Liabilities
|
FY 2007
|
FY 2006
|
Change
|
|
Accounts Payable
|
$2,795
|
$1,816
|
53.9%
|
|
Long-Term Debt
|
$1,282
|
$1,247
|
2.8%
|
The balance sheet reflects the company's health.
Cash Flow Highlights
|
FY 2007
|
FY 2006
|
Change
|
|
Cash From Ops.
|
$1,405
|
$702
|
100.1%
|
|
Capital Expenditures
|
$224
|
$216
|
3.7%
|
|
Free Cash Flow
|
$1,181
|
$486
|
143%
|
|
Owner Earnings
|
$498
|
$179
|
178.2%
|
Free cash flow is a Fool's best friend.
Competitive Context
|
Market Cap
|
Trailing P/E Ratio
|
CAPS Rating
|
|
Target (NYSE: TGT)
|
$43,869
|
15.7
|
***
|
|
eBay (Nasdaq: EBAY)
|
$35,354
|
106.2
|
***
|
|
Amazon
|
$30,702
|
64.5
|
**
|
|
Barnes & Noble (NYSE: BKS)
|
$1,975
|
14.3
|
**
|
|
Overstock (Nasdaq: OSTK)
|
$269.71
|
N/A
|
*
|
Using the latest reported numbers from Capital IQ. Keep your partners close and the competition in your vest pocket.
Related Foolishness:
"The most exciting development in my lifetime!" 15 years ago, Motley Fool founder David Gardner uncovered a secret that changed how he'd invest forever. It can make you money in up, down, and rollercoaster markets. To learn more, enter your email address now.
Terms & Conditions
RSS Headlines
Fool UK