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Amazon.com

Nasdaq:AMZN
Snowflake Description

High growth potential with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AMZN
Nasdaq
$778B
Market Cap
  1. Home
  2. US
  3. Retail
Company description

Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. The last earnings update was 52 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
-7.3%
NasdaqGS:AMZN
-1.4%
US Online Retail
-1.5%
US Market
1 Year Returns
27.7%
NasdaqGS:AMZN
6.7%
US Online Retail
-4.2%
US Market
AMZN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Amazon.com (AMZN) -7.3% -4.6% -21.6% 27.7% 128.9% 277.5%
US Online Retail -1.4% -1.1% -12.7% 6.7% 84.8% 166.6%
US Market -1.5% -5.2% -11.2% -4.2% 27.3% 35.3%
1 Year Return vs Industry and Market
  • AMZN outperformed the Online Retail industry which returned 6.7% over the past year.
  • AMZN outperformed the Market in United States of America which returned -4.2% over the past year.
Price Volatility
AMZN
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Amazon.com.

NasdaqGS:AMZN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 44 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 15.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:AMZN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Online Retail Unlevered Beta Simply Wall St/ S&P Global 1.75
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.75 (1 + (1- 21%) (6.07%))
1.834
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.83
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.834 * 7.05%)
15.88%

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 use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:AMZN DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 26,871.48 37,773.63 46,049.35 58,129.40 67,430.10
Source Analyst x13 Analyst x9 Analyst x4 Analyst x3 Est @ 16%, capped from 22.67%
Present Value
Discounted (@ 15.88%)
23,189.54 28,131.31 29,595.47 32,240.23 32,274.29
Present value of next 5 years cash flows $145,430.82
NasdaqGS:AMZN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $67,430.10 × (1 + 2.95%) ÷ (15.88% – 2.95%)
$536,985.77
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $536,985.77 ÷ (1 + 15.88%)5
$257,019.21
NasdaqGS:AMZN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $145,430.82 + $257,019.21
$402,450.04
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $402,450.04 / 488.97
$823.06
NasdaqGS:AMZN Discount to Share Price
Calculation Result
Value per share (USD) From above. $823.06
Current discount Discount to share price of $1,520.91
= -1 x ($1,520.91 - $823.06) / $823.06
-84.8%

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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NasdaqGS:AMZN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $18.35
NasdaqGS:AMZN Share Price ** NasdaqGS (2018-12-17) in USD $1520.91
United States of America Online Retail Industry PE Ratio Median Figure of 25 Publicly-Listed Online Retail Companies 31.07x
United States of America Market PE Ratio Median Figure of 3,017 Publicly-Listed Companies 16.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Amazon.com.

NasdaqGS:AMZN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:AMZN Share Price ÷ EPS (both in USD)

= 1520.91 ÷ 18.35

82.9x

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?
Raw Data
NasdaqGS:AMZN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 82.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 44 Analysts
33.7%per year
United States of America Online Retail Industry PEG Ratio Median Figure of 22 Publicly-Listed Online Retail Companies 1.5x
United States of America Market PEG Ratio Median Figure of 2,105 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

NasdaqGS:AMZN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 82.9x ÷ 33.7%

2.46x

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?
Raw Data
NasdaqGS:AMZN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $80.01
NasdaqGS:AMZN Share Price * NasdaqGS (2018-12-17) in USD $1520.91
United States of America Online Retail Industry PB Ratio Median Figure of 59 Publicly-Listed Online Retail Companies 3.22x
United States of America Market PB Ratio Median Figure of 5,082 Publicly-Listed Companies 1.7x
NasdaqGS:AMZN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:AMZN Share Price ÷ Book Value per Share (both in USD)

= 1520.91 ÷ 80.01

19.01x

* 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.
X
Value checks
We assess Amazon.com's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Online Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Online Retail industry average (and greater than 0)? (1 check)
  5. 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 44 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!
Annual Growth Rate
33.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Amazon.com expected to grow at an attractive rate?
  • Amazon.com's earnings growth is expected to exceed the low risk savings rate of 3%.
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
Raw Data
NasdaqGS:AMZN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:AMZN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 44 Analysts 33.7%
NasdaqGS:AMZN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 44 Analysts 16.5%
United States of America Online Retail Industry Earnings Growth Rate Market Cap Weighted Average 31.9%
United States of America Online Retail Industry Revenue Growth Rate Market Cap Weighted Average 19.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
Raw Data
NasdaqGS:AMZN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 44 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:AMZN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 443,670 82,109 39,536 10
2021-12-31 386,201 67,461 28,877 12
2020-12-31 332,098 54,912 20,272 29
2019-12-31 280,755 41,770 13,351 44
2018-12-31 232,378 30,147 9,770 41
NasdaqGS:AMZN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
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 18,434 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 17,272 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
2015-12-31 107,006 12,039 596

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Amazon.com's earnings are expected to grow significantly at over 20% yearly.
  • Amazon.com's revenue is expected to grow by 16.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:AMZN 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 44 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.

NasdaqGS:AMZN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 75.11 97.45 45.54 8.00
2021-12-31 55.80 70.87 36.22 9.00
2020-12-31 39.25 48.29 28.45 28.00
2019-12-31 26.32 34.90 19.80 43.00
2018-12-31 19.53 21.69 18.00 40.00
NasdaqGS:AMZN Past Financials Data
Date (Data in USD Millions) EPS *
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
2015-12-31 1.28

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Amazon.com is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Amazon.com's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Amazon.com's growth in the last year to its industry (Online Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (362.5% vs 66.8%)
  • Amazon.com's earnings growth has exceeded the US Online Retail industry average in the past year (362.5% vs 21.5%).
Earnings and Revenue History
Amazon.com's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Amazon.com Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:AMZN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
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
2011-12-31 48,077.00 631.00 6,864.00 2,909.00

*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.
  • Amazon.com has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • 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).
X
Past performance checks
We assess Amazon.com's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Online Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Amazon.com has a total score of 5/6, 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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Amazon.com's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.3x 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.
Raw Data

All data from Amazon.com Company Filings, last reported 2 months ago.

NasdaqGS:AMZN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
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 44,147.00 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
2011-12-31 7,757.00 1,544.00 9,576.00
  • Amazon.com's level of debt (120.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (71% vs 120.7% today).
  • Debt is well covered by operating cash flow (56.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.6x coverage).
X
Financial health checks
We assess Amazon.com's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Amazon.com has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
0%
Current annual income from Amazon.com dividends. Estimated to be 0% next year.
If you bought $2,000 of Amazon.com shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
NasdaqGS:AMZN Annualized Past and Future Dividends
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 44 Analyst Estimates (S&P Global) See Below
Global Online Retail Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1983 Stocks 2.6%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:AMZN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 0.00 5.00
2019-12-31 0.00 6.00
2018-12-31 0.00 7.00

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.
Current Payout to shareholders
What portion of Amazon.com's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Amazon.com has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Amazon.com's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Amazon.com's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jeff Bezos
COMPENSATION $1,681,840
AGE 54
TENURE AS CEO 22.6 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:

3.6
Average Tenure
53
Average Age
  • The tenure for the Amazon.com management team is about average.
Management Team

Jeff Bezos

TITLE
Founder
COMPENSATION
$2M
AGE
54
TENURE
22.6 yrs

Brian Olsavsky

TITLE
Senior VP & CFO
COMPENSATION
$163K
AGE
54
TENURE
3.5 yrs

Jeffrey Blackburn

TITLE
Senior Vice President of Business Development
COMPENSATION
$179K
AGE
48
TENURE
12.7 yrs

Jeff Wilke

TITLE
Chief Executive Officer of Worldwide Consumer
COMPENSATION
$185K
AGE
51
TENURE
2.7 yrs

Andy Jassy

TITLE
Chief Executive Officer of Amazon Web Services
COMPENSATION
$194K
AGE
50
TENURE
2.7 yrs

Shelley Reynolds

TITLE
VP, Worldwide Controller & Principal Accounting Officer
COMPENSATION
$613K
AGE
53
TENURE
11.7 yrs

Dave Fildes

TITLE
Director of Investor Relations
TENURE
3.6 yrs

David Zapolsky

TITLE
Senior VP
AGE
54
TENURE
6.3 yrs

Craig Berman

TITLE
Vice President of Global Communications

Ragia Samir

TITLE
Head of Marketing
TENURE
0.9 yrs
Board of Directors Tenure

Average tenure and age of the Amazon.com board of directors in years:

5.6
Average Tenure
63
Average Age
  • The tenure for the Amazon.com board of directors is about average.
Board of Directors

Jeff Bezos

TITLE
Founder
COMPENSATION
$2M
AGE
54
TENURE
24.9 yrs

Tom Ryder

TITLE
Director
AGE
73
TENURE
16.1 yrs

Jamie Gorelick

TITLE
Director
AGE
67
TENURE
6.8 yrs

Judy McGrath

TITLE
Director
COMPENSATION
$891K
AGE
65
TENURE
4.4 yrs

Jon Rubinstein

TITLE
Lead Director
AGE
61
TENURE
1.9 yrs

Patty Stonesifer

TITLE
Director
AGE
61
TENURE
21.8 yrs

Tom Alberg

TITLE
Director
AGE
78
TENURE
22.5 yrs

Bing Gordon

TITLE
Non-Voting Board Observer
COMPENSATION
$883K
AGE
68
TENURE
1.8 yrs

Wendell Weeks

TITLE
Director
AGE
58
TENURE
2.8 yrs

Dan Huttenlocher

TITLE
Director
AGE
59
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Amazon.com's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

External News
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Simply Wall St News

Could 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 -

Does 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 -

How 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 -

How 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 -

At 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 -

What Should Investors Know About Amazoncom Inc's (NASDAQ:AMZN) Future Margins?

With analysts projecting … earnings growth of 41.19% annualised … over the couple of years ahead,

Simply Wall St -

How Did Amazoncom Inc.'s (NASDAQ:AMZN) 12.52% ROE Fare Against The Industry?

Check out our latest analysis for Amazon.com Breaking down Return on Equity Return on Equity (ROE) is a measure of Amazon.com’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is assessed against cost of equity, which is measured using the Capital Asset Pricing Model (CAPM) – but let’s not dive into the details of that today. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:AMZN Last Perf May 26th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

Simply Wall St -

Which Valuation Model Should You Listen To When Valuing Amazoncom Inc.'s (NASDAQ:AMZN)?

NasdaqGS:AMZN Intrinsic Value Apr 26th 18 A closer look at relative valuation While DCF models sum up future FCFs, relative valuation models are based on the idea that investors should pay the same price for two companies with identical risk and return profiles. … With a projected earnings growth rate of 31.84% for next year, AMZN has a significantly different growth profile when compared with the Online Retail industry, which is projected to grow at 25.1%. … This demonstrates that the Online Retail industry is a weak proxy for AMZN, which undermines our relative valuation analysis.

Simply Wall St -

What Investors Should Know About Amazoncom Inc.'s (NASDAQ:AMZN) Financial Strength

With this rise in debt, the current cash and short-term investment levels stands at US$30.99B for investing into the business. … On top of this, AMZN has produced cash from operations of US$18.43B during the same period of time, leading to an operating cash to total debt ratio of 41.76%, signalling that AMZN’s debt is appropriately covered by operating cash. … In AMZN’s case, it is able to generate 0.42x cash from its debt capital.

Simply Wall St -

Have Investors Priced In Amazoncom Inc.'s (NASDAQ:AMZN) Growth?

The company's shares saw a double-digit share price rise of over 10% in the past couple of months on the NasdaqGS. … Since Amazon.com’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.

Simply Wall St -

AMZN Company Info

Map
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 vendors, as well as those offered by third-party sellers through physical stores and retail Websites, such as amazon.com, amazon.ca, amazon.com.mx, amazon.com.au, amazon.com.br, amazon.cn, amazon.fr, amazon.de, amazon.in, amazon.it, amazon.co.jp, amazon.nl, amazon.es, and amazon.co.uk. Amazon.com, Inc. operates three Amazon Go cashier less convenience stores in Seattle. As of November 21, 2018, it operated a pop-up store in Spain, which sells electronic and clothing products. The company also manufactures and sells electronic devices, including kindle e-readers, fire tablets, fire TVs, and echo devices; and provides Kindle Direct Publishing, an online service that allows independent authors and publishers to make their books available in the Kindle Store. 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, app developers, and others to publish and sell content. Further, the company provides compute, storage, database, and other AWS services, as well as 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 unlimited 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
$778,394,048,599
488,968,628
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
Staff numbers
566,000
Amazon.com employees.
Industry
Internet and Direct Marketing Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/12/17 23:31
End of day share price update: 2018/12/17 00:00
Last estimates confirmation: 2018/12/11
Last earnings filing: 2018/10/26
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


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.