Amazon.com
Market Cap
US$1.0t
Last Updated
2020/02/23 00:24 UTC
Data Sources
Company Financials +
Executive Summary
Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally.
Rewards
Risk Analysis
No risks detected for AMZN from our risk checks.
Snowflake Analysis
Flawless balance sheet with reasonable 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
Stable Share Price: AMZN has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.8%
AMZN
-2.2%
US Online Retail
-1.1%
US Market
1 Year Return
28.5%
AMZN
22.7%
US Online Retail
17.9%
US Market
Return vs Industry: AMZN exceeded the US Online Retail industry which returned 22.7% over the past year.
Return vs Market: AMZN exceeded the US Market which returned 17.9% over the past year.
Shareholder returns
| AMZN | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.8% | -2.2% | -1.1% |
| 30 Day | 12.6% | 5.7% | 1.4% |
| 90 Day | 18.2% | 15.3% | 6.9% |
| 1 Year | 28.5%28.5% | 22.8%22.7% | 20.3%17.9% |
| 3 Year | 148.0%148.0% | 104.9%104.6% | 47.8%38.3% |
| 5 Year | 451.3%451.3% | 212.7%198.9% | 71.9%53.0% |
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
1 week ago | Simply Wall St
Why We Like Amazon.com, Inc.’s (NASDAQ:AMZN) 10% Return On Capital Employed2 weeks ago | Simply Wall St
Need To Know: Amazon.com, Inc. (NASDAQ:AMZN) Insiders Have Been Selling Shares3 weeks ago | Simply Wall St
A Look At The Intrinsic Value Of Amazon.com, Inc. (NASDAQ:AMZN)Valuation
Is Amazon.com undervalued compared to its fair value and its price relative to the market?
89.35x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AMZN ($2095.97) is trading above our estimate of fair value ($1760.1)
Significantly Below Fair Value: AMZN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AMZN is poor value based on its PE Ratio (89.4x) compared to the Online Retail industry average (32.6x).
PE vs Market: AMZN is poor value based on its PE Ratio (89.4x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: AMZN is poor value based on its PEG Ratio (3.5x)
Price to Book Ratio
PB vs Industry: AMZN is overvalued based on its PB Ratio (16.8x) compared to the US Online Retail industry average (3x).
Next Steps
Future Growth
How is Amazon.com forecast to perform in the next 1 to 3 years based on estimates from 43 analysts?
25.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AMZN's forecast earnings growth (25.4% per year) is above the savings rate (1.7%).
Earnings vs Market: AMZN's earnings (25.4% per year) are forecast to grow faster than the US market (14.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AMZN's revenue (14% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: AMZN's revenue (14% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AMZN's Return on Equity is forecast to be low in 3 years time (15.8%).
Next Steps
Past Performance
How has Amazon.com performed over the past 5 years?
60.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AMZN has high quality earnings.
Growing Profit Margin: AMZN's current net profit margins (4.1%) are lower than last year (4.3%).
Past Earnings Growth Analysis
Earnings Trend: AMZN has become profitable over the past 5 years, growing earnings by 60.1% per year.
Accelerating Growth: AMZN's earnings growth over the past year (15%) is below its 5-year average (60.1% per year).
Earnings vs Industry: AMZN earnings growth over the past year (15%) underperformed the Online Retail industry 15%.
Return on Equity
High ROE: AMZN's Return on Equity (18.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Amazon.com's financial position?
Financial Position Analysis
Short Term Liabilities: AMZN's short term assets ($96.3B) exceed its short term liabilities ($87.8B).
Long Term Liabilities: AMZN's short term assets ($96.3B) exceed its long term liabilities ($75.4B).
Debt to Equity History and Analysis
Debt Level: AMZN's debt to equity ratio (39.8%) is considered satisfactory.
Reducing Debt: AMZN's debt to equity ratio has reduced from 78.6% to 39.8% over the past 5 years.
Debt Coverage: AMZN's debt is well covered by operating cash flow (155.8%).
Interest Coverage: AMZN's interest payments on its debt are well covered by EBIT (18.8x 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 3.9x debt).
Next Steps
Dividend
What is Amazon.com's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
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.
Stability and Growth of Payments
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
How experienced are the management team and are they aligned to shareholders interests?
6.0yrs
Average management tenure
CEO
Jeff Bezos (55yo)
23.8yrs
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 ($USD10.81M).
Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 23.8yrs | US$1.68m | 11.16% $116.4b | |
| Senior VP & CFO | 4.7yrs | US$6.93m | 0.00032% $3.3m | |
| Chief Executive Officer of Worldwide Consumer | 3.8yrs | US$19.72m | 0.011% $118.9m | |
| Chief Executive Officer of Amazon Web Services Inc. | 3.8yrs | US$19.73m | 0.020% $210.8m | |
| VP, Worldwide Controller & Principal Accounting Officer | 12.8yrs | US$613.43k | 0.0012% $12.8m | |
| Chief Technology Officer | 0yrs | no data | no data | |
| Senior VP | 7.4yrs | no data | 0.00087% $9.1m | |
| Head of Marketing | 2.1yrs | no data | no data | |
| Senior Vice President | 13.8yrs | no data | no data | |
| UK Country Manager | 0yrs | no data | no data |
6.0yrs
Average Tenure
54yo
Average Age
Experienced Management: AMZN's management team is seasoned and experienced (6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 23.8yrs | US$1.68m | 11.16% $116.4b | |
| Lead Director | 3.1yrs | no data | 0.0016% $16.7m | |
| Independent Director | 4yrs | no data | 0.00031% $3.2m | |
| Independent Director | 1yrs | no data | 0.000070% $730.4k | |
| Independent Director | 8yrs | US$952.74k | 0.0013% $13.5m | |
| Independent Director | 17.3yrs | no data | 0.0019% $19.5m | |
| Independent Director | 23yrs | no data | 0.0014% $14.4m | |
| Independent Director | 5.6yrs | no data | 0.00047% $4.9m | |
| Independent Director | 3.4yrs | no data | 0.00019% $2.0m | |
| Independent Director | 1yrs | no data | no data |
4.8yrs
Average Tenure
62yo
Average Age
Experienced Board: AMZN's board of directors are considered experienced (4.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$1.043t
- Shares outstanding: 497.81m
- Website: https://www.amazon.com
Number of Employees
Location
- Amazon.com, Inc.
- 410 Terry Avenue North
- Seattle
- Washington
- 98109-5210
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AMZN | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | May 1997 |
| AMZN | BVL (Bolsa de Valores de Lima) | Yes | Common Stock | PE | USD | May 1997 |
| AMZN * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | May 1997 |
| AMZ | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | May 1997 |
| AMZN | BVC (Bolsa de Valores de Colombia) | Yes | Common Stock | CO | COP | May 1997 |
| AMZN | SNSE (Santiago Stock Exchange) | Yes | Common Stock | CL | USD | May 1997 |
| AMZ | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | May 1997 |
| AMZN | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | May 1997 |
| AMZN | BIT (Borsa Italiana) | Yes | Common Stock | IT | EUR | May 1997 |
| AMZN | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | May 1997 |
| AMZO34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1/2 COM USD0.01 | BR | BRL | Feb 2012 | |
| AMZN | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH 72 REPR 1 COM USD0.01 | AR | ARS | Apr 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 Amazon Web Services (AWS). It sells merchandise and content purchased for resale from third-party sellers through physical and online stores. The company also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Rings, and Echo and other 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 its stores; 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 fulfillment, advertising, publishing, and digital content subscriptions. 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 00:24 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.