NasdaqGS:AMZN

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

High growth potential with excellent 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.9%

AMZN

-4.4%

US Online Retail

-2.4%

US Market


1 Year Return

81.6%

AMZN

78.1%

US Online Retail

18.2%

US Market

Return vs Industry: AMZN exceeded the US Online Retail industry which returned 78.4% over the past year.

Return vs Market: AMZN exceeded the US Market which returned 19.5% over the past year.


Shareholder returns

AMZNIndustryMarket
7 Day-6.9%-4.4%-2.4%
30 Day8.5%9.8%4.2%
90 Day3.5%9.7%6.3%
1 Year81.6%81.6%78.2%78.1%20.9%18.2%
3 Year228.6%228.6%130.8%130.6%41.2%31.8%
5 Year424.9%424.9%291.6%290.8%84.8%63.9%

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?

121.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AMZN ($3207.21) is trading above our estimate of fair value ($2570.37)

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 (121.1x) compared to the US Online Retail industry average (31.4x).

PE vs Market: AMZN is poor value based on its PE Ratio (121.1x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: AMZN is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: AMZN is overvalued based on its PB Ratio (21.8x) compared to the US Online Retail industry average (4.8x).


Next Steps

Future Growth

How is Amazon.com forecast to perform in the next 1 to 3 years based on estimates from 48 analysts?

33.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMZN's forecast earnings growth (33.2% per year) is above the savings rate (2.2%).

Earnings vs Market: AMZN's earnings (33.2% per year) are forecast to grow faster than the US market (22.1% per year).

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

Revenue vs Market: AMZN's revenue (15.5% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: AMZN's revenue (15.5% 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 (22.6%)


Next Steps

Past Performance

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

51.3%

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 (4.8%).


Past Earnings Growth Analysis

Earnings Trend: AMZN has become profitable over the past 5 years, growing earnings by 51.3% per year.

Accelerating Growth: AMZN's earnings growth over the past year (9%) is below its 5-year average (51.3% per year).

Earnings vs Industry: AMZN earnings growth over the past year (9%) underperformed the Online Retail industry 19.2%.


Return on Equity

High ROE: AMZN's Return on Equity (17.9%) is considered low.


Next Steps

Financial Health

How is Amazon.com's financial position?


Financial Position Analysis

Short Term Liabilities: AMZN's short term assets ($110.9B) exceed its short term liabilities ($93.9B).

Long Term Liabilities: AMZN's short term assets ($110.9B) exceed its long term liabilities ($90.7B).


Debt to Equity History and Analysis

Debt Level: AMZN's debt to equity ratio (47.5%) is considered high.

Reducing Debt: AMZN's debt to equity ratio has reduced from 80.7% to 47.5% over the past 5 years.

Debt Coverage: AMZN's debt is well covered by operating cash flow (146.3%).

Interest Coverage: AMZN's interest payments on its debt are well covered by EBIT (18.9x coverage).


Balance Sheet


Next Steps

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

  • Explore strong dividend paying companies in the Retail industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

7.9yrs

Average management tenure


CEO

Jeff Bezos (56 yo)

24.42yrs

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 ($USD1.68M) is below average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Bezos
Founder24.42yrsUS$1.68m10.88%
$ 174.7b
Brian Olsavsky
Senior VP & CFO5.33yrsUS$163.20k0.00031%
$ 5.0m
Jeffrey Wilke
Chief Executive Officer of Worldwide Consumer13.75yrsUS$210.73k0.010%
$ 166.8m
Andrew Jassy
Chief Executive Officer of Amazon Web Services Inc.4.5yrsUS$348.81k0.018%
$ 288.8m
Dave Clark
Senior Vice President of Worldwide Operations7.75yrsno datano data
Shelley Reynolds
VP, Worldwide Controller & Principal Accounting Officer13.5yrsUS$613.43k0.0012%
$ 19.6m
Werner Vogels
Chief Technology Officerno datano datano data
David Zapolsky
Senior VP8.08yrsno data0.00069%
$ 11.1m
Ragia Samir
Head of Marketing2.75yrsno datano data
Beth Galetti
Senior Vice President of Worldwide Human Resources4.75yrsno datano data
Steven Kessel
Senior Vice President14.5yrsno datano data
Douglas Gurr
UK Country Managerno datano datano data

7.9yrs

Average Tenure

55yo

Average Age

Experienced Management: AMZN's management team is seasoned and experienced (7.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Bezos
Founder24.42yrsUS$1.68m10.88%
$ 174.7b
Jonathan Rubinstein
Lead Independent Director3.75yrsUS$951.49k0.0015%
$ 24.1m
Wendell Weeks
Independent Director4.67yrsUS$929.99k0.00031%
$ 5.0m
Indra Nooyi
Independent Director1.67yrsUS$901.73k0.00017%
$ 2.7m
Jamie Gorelick
Independent Director8.67yrsno data0.0013%
$ 20.6m
Thomas Ryder
Independent Director17.92yrsUS$951.49k0.0019%
$ 29.9m
Patricia Stonesifer
Independent Director23.67yrsUS$951.49k0.00059%
$ 9.5m
Judith McGrath
Independent Director6.25yrsno data0.00046%
$ 7.4m
Daniel Huttenlocher
Independent Director4.08yrsUS$951.49k0.00019%
$ 3.1m
Rosalind Brewer
Independent Director1.67yrsUS$929.99k0.000040%
$ 642.6k
Keith Alexander
Director0.083yrno datano data

4.7yrs

Average Tenure

63yo

Average Age

Experienced Board: AMZN's board of directors are considered experienced (4.7 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$1.606t
  • Shares outstanding: 500.89m
  • Website: https://www.amazon.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMZNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1997
AMZNBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDMay 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
AMZNSNSE (Santiago Stock Exchange)YesCommon StockCLUSDMay 1997
AMZXTRA (XETRA Trading Platform)YesCommon StockDEEURMay 1997
AMZNSWX (SIX Swiss Exchange)YesCommon StockCHCHFMay 1997
AMZNBIT (Borsa Italiana)YesCommon StockITEURMay 1997
645156SWX (SIX Swiss Exchange)YesCommon StockCHUSDMay 1997
AMZNWBAG (Wiener Boerse AG)YesCommon StockATEURMay 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 Analysis2020/10/20 00:44
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.