NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$1.6t

Last Updated

2021/05/11 23:52 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. More Details


Snowflake Analysis

Outstanding track record with flawless balance sheet.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: AMZN's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.7%

AMZN

-5.6%

US Online Retail

-1.2%

US Market


1 Year Return

36.8%

AMZN

34.4%

US Online Retail

48.3%

US Market

Return vs Industry: AMZN exceeded the US Online Retail industry which returned 34.4% over the past year.

Return vs Market: AMZN underperformed the US Market which returned 48.3% over the past year.


Shareholder returns

AMZNIndustryMarket
7 Day-2.7%-5.6%-1.2%
30 Day-4.4%-4.0%0.2%
90 Day-1.9%-11.6%1.6%
1 Year36.8%36.8%34.5%34.4%50.8%48.3%
3 Year104.5%104.5%65.7%65.6%62.0%51.9%
5 Year363.7%363.7%267.9%267.5%126.9%101.7%

Long-Term 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?

32.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMZN ($3190.49) is trading below our estimate of fair value ($4791.58)

Significantly Below Fair Value: AMZN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AMZN is poor value based on its PE Ratio (59.5x) compared to the US Online Retail industry average (30.8x).

PE vs Market: AMZN is poor value based on its PE Ratio (59.5x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: AMZN is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: AMZN is overvalued based on its PB Ratio (15.6x) compared to the US Online Retail industry average (4.5x).


Future Growth

How is Amazon.com forecast to perform in the next 1 to 3 years based on estimates from 43 analysts?

29.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMZN's forecast earnings growth (29% per year) is above the savings rate (2%).

Earnings vs Market: AMZN's earnings (29% per year) are forecast to grow faster than the US market (15% per year).

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

Revenue vs Market: AMZN's revenue (15.1% per year) is forecast to grow faster than the US market (9% per year).

High Growth Revenue: AMZN's revenue (15.1% 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 high in 3 years time (21.5%)


Past Performance

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

48.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMZN has high quality earnings.

Growing Profit Margin: AMZN's current net profit margins (6.4%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: AMZN's earnings have grown significantly by 48.4% per year over the past 5 years.

Accelerating Growth: AMZN's earnings growth over the past year (154.7%) exceeds its 5-year average (48.4% per year).

Earnings vs Industry: AMZN earnings growth over the past year (154.7%) exceeded the Online Retail industry 87.3%.


Return on Equity

High ROE: AMZN's Return on Equity (26%) is considered high.


Financial Health

How is Amazon.com's financial position?


Financial Position Analysis

Short Term Liabilities: AMZN's short term assets ($121.4B) exceed its short term liabilities ($115.4B).

Long Term Liabilities: AMZN's short term assets ($121.4B) exceed its long term liabilities ($104.4B).


Debt to Equity History and Analysis

Debt Level: AMZN's debt to equity ratio (32.7%) is considered satisfactory.

Reducing Debt: AMZN's debt to equity ratio has reduced from 56.2% to 32.7% over the past 5 years.

Debt Coverage: AMZN's debt is well covered by operating cash flow (199.2%).

Interest Coverage: AMZN's interest payments on its debt are well covered by EBIT (25.1x coverage).


Balance Sheet


Dividend

What is Amazon.com 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 recent payouts.

High Dividend: Unable to evaluate AMZN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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 (56 yo)

25yrs

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 ($USD1.68M) is below average for companies of similar size in the US market ($USD11.15M).

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


Leadership Team

Experienced Management: AMZN's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: AMZN's board of directors are considered experienced (6 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.


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$1.626t
  • Shares outstanding: 504.32m
  • Website: https://www.amazon.com

Number of Employees


Location

  • Amazon.com, Inc.
  • 410 Terry Avenue North
  • Seattle
  • Washington
  • 98109-5210
  • United States

Listings


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 Analysis2021/05/11 23:52
End of Day Share Price2021/05/11 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.