NasdaqGS:AMZN

Stock Analysis Report

Executive Summary

Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally.

Snowflake

Fundamentals

Outstanding track record with high growth potential.


Similar Companies

Share Price & News

How has Amazon.com's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.2%

AMZN

4.4%

US Online Retail

2.3%

US Market


1 Year Return

-3.0%

AMZN

6.5%

US Online Retail

5.6%

US Market

Return vs Industry: AMZN underperformed the US Online Retail industry which returned 6.5% over the past year.

Return vs Market: AMZN underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

AMZNIndustryMarket
7 Day3.2%4.4%2.3%
30 Day-1.7%-1.9%-1.0%
90 Day-10.1%-5.1%-0.7%
1 Year-3.0%-3.0%6.5%6.5%7.9%5.6%
3 Year117.4%117.4%79.9%79.7%45.6%36.3%
5 Year467.9%467.9%177.5%165.8%65.8%47.6%

Price Volatility Vs. Market

How volatile is Amazon.com's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Amazon.com undervalued compared to its fair value and its price relative to the market?

13.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: AMZN ($1777.43) is trading below our estimate of fair value ($2063.29)

Significantly Undervalued: AMZN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AMZN is poor value based on its PE Ratio (72.1x) compared to the Online Retail industry average (33.1x).

PE vs Market: AMZN is poor value based on its PE Ratio (72.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: AMZN is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: AMZN is overvalued based on its PB Ratio (16.5x) compared to the US Online Retail industry average (2.5x).


Next Steps

Future Growth

How is Amazon.com forecast to perform in the next 1 to 3 years based on estimates from 44 analysts?

32.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMZN's forecast earnings growth (32.7% per year) is above the savings rate (2.7%).

Earnings vs Market: AMZN's earnings (32.7% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AMZN's revenue (15.7% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: AMZN's revenue (15.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: AMZN's Return on Equity is forecast to be high in 3 years time (25.3%)


Next Steps

Past Performance

How has Amazon.com performed over the past 5 years?

67.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AMZN's earnings have grown significantly by 67.1% per year over the past 5 years.

Accelerating Growth: AMZN's earnings growth over the past year (92.8%) exceeds its 5-year average (67.1% per year).

Earnings vs Industry: AMZN earnings growth over the past year (92.8%) exceeded the Online Retail industry -15.1%.


Return on Equity

High ROE: AMZN's Return on Equity (22.8%) is considered high.


Return on Assets

ROA vs Industry: AMZN has a higher Return on Assets than the Online Retail industry average last year.


Return on Capital Employed

ROCE Improving: AMZN has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Amazon.com's financial position?


Financial Position Analysis

Short Term Liabilities: AMZN's short term assets ($76.8B) exceeds its short term liabilities ($69.7B)

Long Term Liabilities: AMZN's short term assets (76.8B) exceeds its long term liabilities (68.6B)


Debt to Equity History and Analysis

Debt Level: AMZN's debt to equity ratio (47%) is considered high

Reducing Debt: AMZN's debt to equity ratio has increased from 37.5% to 47% over the past 5 years.

Debt Coverage: AMZN's debt is well covered by operating cash flow (144.3%).

Interest Coverage: AMZN's interest payments on its debt are well covered by EBIT (18.1x coverage).


Balance Sheet

Inventory Level: AMZN has a high level of physical assets or inventory.

Debt Coverage by Assets: AMZN's debt is covered by short term assets (assets are 3.075900x debt).


Next Steps

Dividend

What is Amazon.com's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate AMZN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AMZN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if AMZN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AMZN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AMZN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Amazon.com's salary, the management and board of directors tenure and is there insider trading?

5.7yrs

Average management tenure


CEO

Jeff Bezos (55yo)

23.4yrs

Tenure

US$1,681,840

Compensation

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 it ...


CEO Compensation Analysis

Compensation vs. Market: Jeff's total compensation ($USD1.68M) is below average for companies of similar size in the US market ($USD11.23M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.7yrs

Average Tenure

53yo

Average Age

Experienced Management: AMZN's management team is seasoned and experienced (5.7 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

62yo

Average Age

Experienced Board: AMZN's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$116,94117 May 19
Indra Nooyi
EntityIndividual
Role
Member of the Board of Directors
Director
Shares68
Max PriceUS$1,825.05

Ownership Breakdown


Management Team

  • Jeff Bezos (55yo)

    Founder

    • Tenure: 23.4yrs
    • Compensation: US$1.68m
  • Jeff Wilke (52yo)

    Chief Executive Officer of Worldwide Consumer

    • Tenure: 3.5yrs
    • Compensation: US$19.72m
  • Doug Gurr

    UK Country Manager

    • Tenure: 0yrs
  • Andy Jassy (51yo)

    Chief Executive Officer of Amazon Web Services Inc.

    • Tenure: 3.5yrs
    • Compensation: US$19.73m
  • Steven Kessel (53yo)

    Senior Vice President

    • Tenure: 13.5yrs
  • Jeffrey Blackburn (49yo)

    Senior Vice President of Business Development

    • Tenure: 13.5yrs
    • Compensation: US$10.40m
  • David Zapolsky (55yo)

    Senior VP

    • Tenure: 7.1yrs
  • Craig Berman

    Vice President of Global Communications

    • Tenure: 0yrs
  • Brian Olsavsky (55yo)

    Senior VP & CFO

    • Tenure: 4.3yrs
    • Compensation: US$6.93m
  • Ragia Samir

    Head of Marketing

    • Tenure: 1.8yrs

Board Members

  • Jon Rubinstein (62yo)

    Lead Director

    • Tenure: 2.8yrs
  • Wendell Weeks (59yo)

    Director

    • Tenure: 3.7yrs
  • Indra Nooyi (63yo)

    Director

    • Tenure: 0.7yrs
  • Jeff Bezos (55yo)

    Founder

    • Tenure: 23.4yrs
    • Compensation: US$1.68m
  • Jamie Gorelick (68yo)

    Director

    • Tenure: 7.7yrs
    • Compensation: US$952.74k
  • Tom Ryder (74yo)

    Director

    • Tenure: 16.9yrs
  • Patty Stonesifer (62yo)

    Director

    • Tenure: 22.7yrs
  • Judy McGrath (66yo)

    Director

    • Tenure: 5.3yrs
  • Dan Huttenlocher (60yo)

    Director

    • Tenure: 3.1yrs
  • Rosalind Brewer (56yo)

    Director

    • Tenure: 0.7yrs

Company Information

Amazon.com, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Amazon.com, Inc.
  • Ticker: AMZN
  • Exchange: NasdaqGS
  • Founded: 1994
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$879.216b
  • Shares outstanding: 494.66m
  • Website: https://www.amazon.com

Number of Employees


Location

  • Amazon.com, Inc.
  • 410 Terry Avenue North
  • Seattle
  • Washington
  • 98109
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMZNSNSE (Santiago Stock Exchange)YesCommon StockCLUSDMay 1997
AMZNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1997
AMZN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMay 1997
AMZDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1997
AMZNBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPMay 1997
AMZNWBAG (Wiener Boerse AG)YesCommon StockATEURMay 1997
AMZNBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDMay 1997
AMZXTRA (XETRA Trading Platform)YesCommon StockDEEURMay 1997
AMZNSWX (SIX Swiss Exchange)YesCommon StockCHCHFMay 1997
AMZNBIT (Borsa Italiana)YesCommon StockITEURMay 1997
AMZO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1/2 COM USD0.01BRBRLFeb 2012
AMZNBASE (Buenos Aires Stock Exchange)CEDEAR EACH 72 REPR 1 COM USD0.01ARARSApr 2019

Biography

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 Amazo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:30
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.