This report provides a summary of key financial metrics and growth estimates for Amazon Inc. (AMZN) over the period from 2013 to 2023. The analysis covers Earnings per Share (EPS), Net Profits, Revenue, Shareholders’ Equity, and Long-Term Debt. Additionally, projections are provided for future EPS and stock price growth over the next 10 years.
1. Earnings per Share (EPS):
- Initial EPS (2013): $0.59
- Current EPS (2023): $2.29
- Annual EPS Growth Rate (CAGR): 14.52%
- Projected EPS in 10 Years: $8.89
- Estimated Stock Price in 10 Years: $159.99
- Annual Stock Price Growth Rate (CAGR): 2.26%
2. Net Profits:
- Initial Net Profits (2013): $274 million
- Current Net Profits (2023): $19 billion
- Annual Net Profits Growth Rate (CAGR): 52.79%
3. Revenue:
- Initial Revenue (2013): $74 billion
- Current Revenue (2023): $538 billion
- Annual Revenue Growth Rate (CAGR): 21.94%
4. Shareholders’ Equity:
- Initial Equity (2013): $13 billion
- Current Equity (2023): $171 billion
- Annual Equity Growth Rate (CAGR): 29.39%
5. Long-Term Debt:
- Initial Long-Term Debt (2013): $3 billion
- Current Long-Term Debt (2023): $65 billion
- Annual Long-Term Debt Growth Rate (CAGR): 36.01%
- Years to Pay Off Long-Term Debt Using Net Profit: 3.42 years
Key Insights:
- EPS Growth: Amazon has shown a steady EPS growth rate of 14.52%, suggesting continued profitability expansion. However, stock price growth is moderate at 2.26%.
- Net Profit Explosion: Net profits have increased dramatically, growing by an astounding 52.79% CAGR, reflecting Amazon’s exponential business growth.
- Revenue Growth: Amazon’s revenue grew at a robust 21.94% CAGR, signifying its dominance in retail, cloud services, and other sectors.
- Equity Expansion: Shareholders’ equity has grown significantly by 29.39%, indicating a strong capital position.
- Debt Accumulation: Long-term debt has grown rapidly at 36.01%, yet it would take Amazon just over three years of net profits to fully pay it off, suggesting manageable debt levels relative to earnings.