Amazon.com
Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. The last earnings update was 47 days ago. More info.
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- Amazon.com has significant price volatility in the past 3 months.
AMZN Share Price and Events
7 Day Returns
1 Year Returns
AMZN Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Amazon.com (AMZN) | 6.3% | 11.8% | 23% | 13.6% | 215.5% | 423.4% |
| US Online Retail | 2.9% | 8% | 22.6% | -0.2% | 138.6% | 214.2% |
| US Market | 1.2% | 2.1% | 14.6% | 3% | 39% | 43.5% |
1 Year Return vs Industry and Market
- AMZN outperformed the Online Retail industry which returned -0.2% over the past year.
- AMZN outperformed the Market in United States of America which returned 3% over the past year.
AMZN Value
Is Amazon.com undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Amazon.com
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Amazon.com.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 40 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 11.8% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Online Retail Unlevered Beta | Simply Wall St/ S&P Global | 1.7 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.698 (1 + (1- 21%) (5.58%)) |
1.518 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.52 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.518 * 5.96%) |
11.78% |
Discounted Cash Flow Calculation for NasdaqGS:AMZN using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Amazon.com is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 11.78%) |
|
|---|---|---|---|
| 2019 | 27,393.76 | Analyst x12 | 24,507.51 |
| 2020 | 37,810.47 | Analyst x10 | 30,262.68 |
| 2021 | 47,543.10 | Analyst x4 | 34,043.20 |
| 2022 | 57,287.90 | Analyst x3 | 36,698.93 |
| 2023 | 69,175.83 | Analyst x3 | 39,645.37 |
| 2024 | 78,852.23 | Est @ 13.99% | 40,429.62 |
| 2025 | 87,218.98 | Est @ 10.61% | 40,007.77 |
| 2026 | 94,411.48 | Est @ 8.25% | 38,744.12 |
| 2027 | 100,634.64 | Est @ 6.59% | 36,946.74 |
| 2028 | 106,102.19 | Est @ 5.43% | 34,849.82 |
| Present value of next 10 years cash flows | $356,135.77 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $106,102.19 × (1 + 2.73%) ÷ (11.78% – 2.73%) |
$1,204,808.28 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $1,204,808.28 ÷ (1 + 11.78%)10 |
$395,725.62 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $356,135.77 + $395,725.62 |
$751,861.39 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $751,861.39 / 491.20 |
$1530.65 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $1,530.65 |
| Current discount | Discount to share price of
$1,797.27
= -1 x ($1,797.27 - $1,530.65) / $1,530.65 |
-17.4% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Amazon.com is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Amazon.com's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Amazon.com's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $20.68 |
| NasdaqGS:AMZN Share Price ** | NasdaqGS (2019-03-20) in USD | $1797.27 |
| United States of America Online Retail Industry PE Ratio | Median Figure of 26 Publicly-Listed Online Retail Companies | 31.35x |
| United States of America Market PE Ratio | Median Figure of 3,058 Publicly-Listed Companies | 17.69x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Amazon.com.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:AMZN Share Price ÷ EPS (both in USD) = 1797.27 ÷ 20.68 |
86.89x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Amazon.com is overvalued based on earnings compared to the US Online Retail industry average.
- Amazon.com is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Amazon.com's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 86.89x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 40 Analysts |
26.6%per year |
| United States of America Online Retail Industry PEG Ratio | Median Figure of 23 Publicly-Listed Online Retail Companies | 1.61x |
| United States of America Market PEG Ratio | Median Figure of 2,103 Publicly-Listed Companies | 1.48x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 86.89x ÷ 26.6% |
3.26x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Amazon.com is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Amazon.com's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $88.69 |
| NasdaqGS:AMZN Share Price * | NasdaqGS (2019-03-20) in USD | $1797.27 |
| United States of America Online Retail Industry PB Ratio | Median Figure of 58 Publicly-Listed Online Retail Companies | 3.4x |
| United States of America Market PB Ratio | Median Figure of 5,156 Publicly-Listed Companies | 1.89x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:AMZN Share Price ÷ Book Value per Share (both in USD) = 1797.27 ÷ 88.69 |
20.26x |
* Primary Listing of Amazon.com.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Amazon.com is overvalued based on assets compared to the US Online Retail industry average.
Value checks
We assess Amazon.com's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Online Retail industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Online Retail industry average (and greater than 0)? (1 check) Amazon.com has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
AMZN Future Performance
How is Amazon.com expected to perform in the next 1 to 3 years based on estimates from 40 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Amazon.com's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Amazon.com's earnings growth is expected to exceed the United States of America market average.
- Amazon.com's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:AMZN Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 40 Analysts | 26.6% |
| NasdaqGS:AMZN Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 40 Analysts | 13.9% |
| United States of America Online Retail Industry Earnings Growth Rate | Market Cap Weighted Average | 25.1% |
| United States of America Online Retail Industry Revenue Growth Rate | Market Cap Weighted Average | 17% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 40 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 481,532 | 91,387 | 46,811 | 8 |
| 2022-12-31 | 427,086 | 77,211 | 38,198 | 9 |
| 2021-12-31 | 374,781 | 64,575 | 29,356 | 18 |
| 2020-12-31 | 324,935 | 54,139 | 20,258 | 37 |
| 2019-12-31 | 275,138 | 41,516 | 13,642 | 40 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 232,887 | 30,723 | 10,073 |
| 2018-09-30 | 220,957 | 26,673 | 8,903 |
| 2018-06-30 | 208,125 | 21,862 | 6,275 |
| 2018-03-31 | 193,194 | 18,262 | 3,938 |
| 2017-12-31 | 177,866 | 18,365 | 3,033 |
| 2017-09-30 | 161,154 | 16,995 | 1,925 |
| 2017-06-30 | 150,124 | 17,877 | 1,922 |
| 2017-03-31 | 142,573 | 17,606 | 2,582 |
| 2016-12-31 | 135,987 | 17,203 | 2,371 |
| 2016-09-30 | 127,993 | 15,096 | 2,104 |
| 2016-06-30 | 120,637 | 13,047 | 1,931 |
| 2016-03-31 | 113,417 | 11,466 | 1,166 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 40 Analyst Estimates (S&P Global) | See Below |
All data from Amazon.com Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 89.30 | 121.50 | 66.54 | 5.00 |
| 2022-12-31 | 74.24 | 94.25 | 55.15 | 6.00 |
| 2021-12-31 | 56.90 | 73.85 | 41.08 | 16.00 |
| 2020-12-31 | 39.41 | 51.70 | 31.20 | 38.00 |
| 2019-12-31 | 27.12 | 34.03 | 21.85 | 44.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 20.68 |
| 2018-09-30 | 18.35 |
| 2018-06-30 | 12.98 |
| 2018-03-31 | 8.17 |
| 2017-12-31 | 6.32 |
| 2017-09-30 | 4.02 |
| 2017-06-30 | 4.03 |
| 2017-03-31 | 5.43 |
| 2016-12-31 | 5.00 |
| 2016-09-30 | 4.46 |
| 2016-06-30 | 4.11 |
| 2016-03-31 | 2.49 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Amazon.com's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Amazon.com has a total score of 5/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
AMZN Past Performance
How has Amazon.com performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Amazon.com has delivered over 20% year on year earnings growth in the past 5 years.
- Amazon.com's 1-year earnings growth exceeds its 5-year average (232.1% vs 67.8%)
- Amazon.com's earnings growth has exceeded the US Online Retail industry average in the past year (232.1% vs 10.6%).
Earnings and Revenue History
All data from Amazon.com Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 232,887.00 | 10,073.00 | 52,177.00 | 28,837.00 |
| 2018-09-30 | 220,957.00 | 8,903.00 | 49,578.00 | 27,482.00 |
| 2018-06-30 | 208,125.00 | 6,275.00 | 46,819.00 | 26,263.00 |
| 2018-03-31 | 193,194.00 | 3,938.00 | 43,138.00 | 24,566.00 |
| 2017-12-31 | 177,866.00 | 3,033.00 | 38,992.00 | 22,620.00 |
| 2017-09-30 | 161,154.00 | 1,925.00 | 34,483.00 | 20,850.00 |
| 2017-06-30 | 150,124.00 | 1,922.00 | 31,334.00 | 19,043.00 |
| 2017-03-31 | 142,573.00 | 2,582.00 | 28,754.00 | 17,694.00 |
| 2016-12-31 | 135,987.00 | 2,371.00 | 27,284.00 | 16,085.00 |
| 2016-09-30 | 127,993.00 | 2,104.00 | 25,028.00 | 15,110.00 |
| 2016-06-30 | 120,637.00 | 1,931.00 | 23,274.00 | 14,171.00 |
| 2016-03-31 | 113,417.00 | 1,166.00 | 22,084.00 | 12,990.00 |
| 2015-12-31 | 107,006.00 | 596.00 | 20,411.00 | 12,540.00 |
| 2015-09-30 | 100,588.00 | 328.00 | 19,110.00 | 11,607.00 |
| 2015-06-30 | 95,808.00 | -188.00 | 18,195.00 | 10,832.00 |
| 2015-03-31 | 91,964.00 | -406.00 | 17,405.00 | 10,038.00 |
| 2014-12-31 | 88,988.00 | -241.00 | 16,650.00 | 9,275.00 |
| 2014-09-30 | 85,246.00 | -215.00 | 15,627.00 | 8,501.00 |
| 2014-06-30 | 81,759.00 | 181.00 | 14,592.00 | 7,813.00 |
| 2014-03-31 | 78,123.00 | 300.00 | 13,687.00 | 7,173.00 |
| 2013-12-31 | 74,452.00 | 274.00 | 12,847.00 | 6,565.00 |
| 2013-09-30 | 70,133.00 | 132.00 | 11,821.00 | 6,048.00 |
| 2013-06-30 | 66,848.00 | -101.00 | 11,094.00 | 5,506.00 |
| 2013-03-31 | 63,978.00 | -87.00 | 10,422.00 | 5,002.00 |
| 2012-12-31 | 61,093.00 | -39.00 | 9,723.00 | 4,564.00 |
| 2012-09-30 | 57,256.00 | 40.00 | 8,816.00 | 4,081.00 |
| 2012-06-30 | 54,326.00 | 377.00 | 8,202.00 | 3,658.00 |
| 2012-03-31 | 51,405.00 | 560.00 | 7,524.00 | 3,275.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Whilst Amazon.com has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
- Amazon.com used its assets less efficiently than the US Online Retail industry average last year based on Return on Assets.
- Amazon.com has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Amazon.com's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Online Retail industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Amazon.com has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
AMZN Health
How is Amazon.com's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Amazon.com's finances.
The net worth of a company is the difference between its assets and liabilities.
- Amazon.com is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Amazon.com's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Amazon.com Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 43,549.00 | 49,289.00 | 41,250.00 |
| 2018-09-30 | 39,125.00 | 47,219.00 | 29,765.00 |
| 2018-06-30 | 34,995.00 | 45,789.00 | 27,050.00 |
| 2018-03-31 | 31,463.00 | 44,487.00 | 24,963.00 |
| 2017-12-31 | 27,709.00 | 44,108.00 | 30,986.00 |
| 2017-09-30 | 24,658.00 | 43,186.00 | 24,310.00 |
| 2017-06-30 | 23,214.00 | 23,619.00 | 21,451.00 |
| 2017-03-31 | 21,674.00 | 21,599.00 | 21,531.00 |
| 2016-12-31 | 19,285.00 | 20,413.00 | 25,981.00 |
| 2016-09-30 | 17,782.00 | 18,988.00 | 18,347.00 |
| 2016-06-30 | 16,538.00 | 17,860.00 | 16,540.00 |
| 2016-03-31 | 14,756.00 | 17,612.00 | 15,859.00 |
| 2015-12-31 | 13,384.00 | 17,512.00 | 19,808.00 |
| 2015-09-30 | 12,430.00 | 18,587.00 | 14,428.00 |
| 2015-06-30 | 11,768.00 | 17,953.00 | 14,001.00 |
| 2015-03-31 | 10,873.00 | 17,031.00 | 13,781.00 |
| 2014-12-31 | 10,741.00 | 14,009.00 | 17,416.00 |
| 2014-09-30 | 10,336.00 | 9,708.00 | 6,883.00 |
| 2014-06-30 | 10,602.00 | 8,550.00 | 7,986.00 |
| 2014-03-31 | 10,328.00 | 7,595.00 | 8,666.00 |
| 2013-12-31 | 9,746.00 | 5,934.00 | 12,447.00 |
| 2013-09-30 | 9,087.00 | 6,466.00 | 7,689.00 |
| 2013-06-30 | 8,733.00 | 5,536.00 | 7,463.00 |
| 2013-03-31 | 8,432.00 | 5,230.00 | 7,895.00 |
| 2012-12-31 | 8,192.00 | 4,409.00 | 11,448.00 |
| 2012-09-30 | 7,553.00 | 2,549.00 | 5,248.00 |
| 2012-06-30 | 7,505.00 | 2,385.00 | 4,970.00 |
| 2012-03-31 | 7,271.00 | 2,363.00 | 5,715.00 |
- Amazon.com's level of debt (113.2%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (61% vs 113.2% today).
- Debt is well covered by operating cash flow (62.3%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 12.7x coverage).
Financial health checks
We assess Amazon.com's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Amazon.com has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
AMZN Dividends
What is Amazon.com's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Amazon.com
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Amazon.com's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Amazon.com's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 40 Analyst Estimates (S&P Global) | See Below |
| Global Online Retail Industry Average Dividend Yield | Market Cap Weighted Average of 20 Stocks | 1.7% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2004 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | ||
| 2022-12-31 | ||
| 2021-12-31 | 0.00 | 3.00 |
| 2020-12-31 | 0.00 | 6.00 |
| 2019-12-31 | 0.00 | 6.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Amazon.com has not reported any payouts.
- Unable to verify if Amazon.com's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Amazon.com's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Amazon.com afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Amazon.com has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
AMZN Management
CEO
| COMPENSATION | $1,681,840 |
| AGE | 54 |
| TENURE AS CEO | 22.8 years |
CEO Bio
Mr. Jeffrey P. Bezos, also known as Jeff, founded Amazon.com, Inc. in 1994 and has been its Chief Executive Officer since May 1996. Mr. Bezos has been Chairman of Amazon.com Inc. since 1994 and has been its President since October 2000. Mr. Bezos is the Founder of Bezos Expeditions, LLC. He is a Principal Advisor at A9.com, Inc. He served as the President at Amazon.com, Inc. from 1994 to June 1999. He served as the President and Chief Executive Officer at Padcom, Inc. He worked at the intersection of computer science and finance, helping build one of the most technically sophisticated quantitative hedge funds on Wall Street for D. E. Shaw & Co. He has been a Director of Amazon.com, Inc., since 1994. He served as a Director of Drugstore.com Inc., from August 1998 to June 10, 2004. He has always been interested in anything that can be revolutionized by computers. Intrigued by the amazing growth in use of the Internet, he created a business model that leveraged the Internet’s unique ability to deliver huge amounts of information rapidly and efficiently. Mr. Bezos graduated summa cum laude and B.S. in Electrical Engineering and Computer Science from Princeton University in 1986.
CEO Compensation
- Jeff's compensation has been consistent with company performance over the past year.
- Jeff's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Amazon.com management team in years:
- The tenure for the Amazon.com management team is about average.
Management Team
Jeff Bezos
Founder
$2M
54
22.8 yrs
Brian Olsavsky
Senior VP & CFO
$163K
54
3.8 yrs
Jeffrey Blackburn
Senior Vice President of Business Development
$179K
48
12.9 yrs
Jeff Wilke
Chief Executive Officer of Worldwide Consumer
$185K
51
2.9 yrs
Andy Jassy
Chief Executive Officer of Amazon Web Services
$194K
50
2.9 yrs
Shelley Reynolds
VP, Worldwide Controller & Principal Accounting Officer
$613K
53
11.9 yrs
Dave Fildes
Director of Investor Relations
3.8 yrs
David Zapolsky
Senior VP
54
6.5 yrs
Craig Berman
Vice President of Global Communications
Ragia Samir
Head of Marketing
1.2 yrs
Board of Directors Tenure
Average tenure and age of the Amazon.com board of directors in years:
- The tenure for the Amazon.com board of directors is about average.
Board of Directors
Jeff Bezos
Founder
$2M
54
25.2 yrs
Tom Ryder
Director
73
16.3 yrs
Jamie Gorelick
Director
67
7.1 yrs
Judy McGrath
Director
$891K
65
4.7 yrs
Jon Rubinstein
Lead Director
61
2.2 yrs
Patty Stonesifer
Director
61
22.1 yrs
Tom Alberg
Director
78
22.8 yrs
Bing Gordon
Non-Voting Board Observer
$883K
68
2 yrs
Wendell Weeks
Director
58
3.1 yrs
Dan Huttenlocher
Director
59
2.5 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess Amazon.com's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Amazon.com has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
AMZN News
Simply Wall St News
Is Amazon.com, Inc.'s (NASDAQ:AMZN) CEO Pay Justified?
In 1996 Jeff Bezos was appointed CEO of Amazon.com, Inc. … First, this article will compare CEO compensation with compensation at other large companies. … How Does Jeff Bezos's Compensation Compare With Similar Sized Companies?
Simply Wall St - – Full articleWhy Amazon.com, Inc.’s (NASDAQ:AMZN) Return On Capital Employed Is Impressive
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Simply Wall St - – Full articleAmazon.com, Inc. (NASDAQ:AMZN): A Fundamentally Attractive Investment
(NASDAQ:AMZN) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of AMZN, it
Simply Wall St - – Full articleDon't Sell Amazon.com, Inc. (NASDAQ:AMZN) Before You Read This
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Amazon.com, Inc.'s (NASDAQ:AMZN) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleA Closer Look At Amazon.com, Inc.'s (NASDAQ:AMZN) Impressive ROE
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.23. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleCould Amazoncom Inc's (NASDAQ:AMZN) Investor Composition Influence The Stock Price?
Generally speaking, as a company grows, institutions will increase their ownership. … As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'. … institutions own shares in the company
Simply Wall St - – Full articleDoes Amazoncom Inc's (NASDAQ:AMZN) CEO Pay Reflect Performance?
This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Jeff Bezos's Compensation Compare With Similar Sized Companies. … We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m.
Simply Wall St - – Full articleHow Financially Strong Is Amazoncom Inc (NASDAQ:AMZN)?
Market participants who are conscious of risk tend to search for large firms, attracted by the prospect of varied revenue sources and strong returns on capital. … Today we will look at Amazon.com’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis
Simply Wall St - – Full articleHow Amazoncom Inc (NASDAQ:AMZN) Delivered A Better ROE Than Its Industry
and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden. … Peeling the layers of ROE – trisecting a company’s profitability
Simply Wall St - – Full articleAt US$1,661, Is It Time To Buy Amazoncom Inc (NASDAQ:AMZN)?
As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock … However, what if the stock is still a bargain?
Simply Wall St - – Full articleAMZN Company Info
Description
Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS) segments. It sells merchandise and content purchased for resale from third-party sellers through physical stores and online stores. The company also manufactures and sells electronic devices, including Kindle e-readers, Fire tablets, Fire TVs, and Echo devices; provides Kindle Direct Publishing, an online service that allows independent authors and publishers to make their books available in the Kindle Store; and develops and produces media content. In addition, it offers programs that enable sellers to sell their products on its Websites, as well as their own branded Websites; and programs that allow authors, musicians, filmmakers, skill and app developers, and others to publish and sell content. Further, the company provides compute, storage, database, and other AWS services, as well as compute, storage, database offerings, fulfillment, publishing, digital content subscriptions, advertising, and co-branded credit card agreement services. Additionally, it offers Amazon Prime, a membership program, which provides free shipping of various items; access to streaming of movies and TV episodes; and other services. It serves consumers, sellers, developers, enterprises, and content creators. The company was founded in 1994 and is headquartered in Seattle, Washington.
Details
| Name: | Amazon.com, Inc. |
| AMZN | |
| Exchange: | NasdaqGS |
| Founded: | 1994 |
| $882,824,218,110 | |
| 491,202,890 | |
| Website: | http://www.amazon.com |
| Address: |
Amazon.com, Inc. 410 Terry Avenue North, Seattle, Washington, 98109, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | AMZN | Common Stock | Nasdaq Global Select | US | USD | 15. May 1997 | |
| DB | AMZ | Common Stock | Deutsche Boerse AG | DE | EUR | 15. May 1997 | |
| XTRA | AMZ | Common Stock | XETRA Trading Platform | DE | EUR | 15. May 1997 | |
| SWX | AMZN | Common Stock | SIX Swiss Exchange | CH | CHF | 15. May 1997 | |
| BIT | AMZN | Common Stock | Borsa Italiana | IT | EUR | 15. May 1997 | |
| WBAG | AMZN | Common Stock | Wiener Boerse AG | AT | EUR | 15. May 1997 | |
| SNSE | AMZN | Common Stock | Santiago Stock Exchange | CL | USD | 15. May 1997 | |
| BVC | AMZN | Common Stock | Bolsa de Valores de Colombia | CO | COP | 15. May 1997 | |
| BMV | AMZN * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 15. May 1997 | |
| BVL | AMZN | Common Stock | Bolsa de Valores de Lima | PE | USD | 15. May 1997 | |
| BOVESPA | AMZO34 | BDR EACH REPR 1/2 COM USD0.01 | Bolsa de Valores de Sao Paulo | BR | BRL | 01. Feb 2012 |
Number of employees
Current staff
Industry
| Internet and Direct Marketing Retail | |
| Retail |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/20 23:32 |
| End of day share price update: | 2019/03/20 00:00 |
| Last estimates confirmation: | 2019/03/20 |
| Last earnings filing: | 2019/02/01 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
