Amazon.com (NasdaqGS:AMZN) - Share price, News & Analysis

AMZN fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	1/6
Financial Health	3/6
Dividends	0/6

AMZN Stock Overview

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

Rewards

Trading at 58.9% below our estimate of its fair value

Earnings are forecast to grow 44.5% per year

Risk Analysis

High level of non-cash earnings

Profit margins (4.5%) are lower than last year (6.4%)

Amazon.com Competitors

Alibaba Group Holding

NYSE:BABA

US$234.4b

JD.com

NasdaqGS:JD

US$81.5b

Pinduoduo

NasdaqGS:PDD

US$51.1b

MercadoLibre

NasdaqGS:MELI

US$39.0b

Price History & Performance

Summary of all time highs, changes and price drops for Amazon.com
Historical stock prices
Current Share Price	US$2,151.14
52 Week High	US$3,773.08
52 Week Low	US$2,048.11
Beta	1.23
1 Month Change	-25.49%
3 Month Change	-28.39%
1 Year Change	-33.71%
3 Year Change	17.98%
5 Year Change	116.03%
Change since IPO	109,745.63%

Recent News & Updates

May 22

Amazon: Don't Pull The Buy Trigger Yet

A huge downdraft hit Amazon last week as the major retailers released hugely underwhelming guidance over consumer spending. The US consumer outlook is getting weaker. We also believe that the current near-term bottom may not have priced in further deterioration in the consumer outlook. Cutbacks in corporate IT spending may also hit AWS. Our price action analysis suggests a near-term bottom. However, a further downside of up to 25% is possible if more headwinds materialize. We reiterate our Hold rating on AMZN stock.

Shareholder Returns

	AMZN	US Online Retail	US Market
7D	-2.9%	-1.5%	-0.5%
1Y	-33.7%	-43.6%	-12.3%

Return vs Industry: AMZN exceeded the US Online Retail industry which returned -43.2% over the past year.

Return vs Market: AMZN underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is AMZN's price volatile compared to industry and market?
AMZN volatility
AMZN Average Weekly Movement	7.6%
Online Retail Industry Average Movement	13.6%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: AMZN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: AMZN's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1994	1,608,000	Andy Jassy	https://www.amazon.com

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.

Amazon.com Fundamentals Summary

How do Amazon.com's earnings and revenue compare to its market cap?
AMZN fundamental statistics
Market Cap	US$1.09t
Earnings (TTM)	US$21.41b
Revenue (TTM)	US$477.75b

51.1x

P/E Ratio

2.3x

P/S Ratio

Is AMZN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AMZN income statement (TTM)
Revenue	US$477.75b
Cost of Revenue	US$276.44b
Gross Profit	US$201.31b
Other Expenses	US$179.90b
Earnings	US$21.41b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	42.09
Gross Margin	42.14%
Net Profit Margin	4.48%
Debt/Equity Ratio	50.8%

How did AMZN perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AMZN ($2151.14) is trading below our estimate of fair value ($5235.37)

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 (51.1x) compared to the US Online Retail industry average (11.7x).

PE vs Market: AMZN is poor value based on its PE Ratio (51.1x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: AMZN is poor value based on its PEG Ratio (1.1x)

Price to Book Ratio

PB vs Industry: AMZN is overvalued based on its PB Ratio (8.2x) compared to the US Online Retail industry average (1.9x).

Future Growth

How is Amazon.com forecast to perform in the next 1 to 3 years based on estimates from 47 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

44.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMZN's forecast earnings growth (44.5% per year) is above the savings rate (1.9%).

Earnings vs Market: AMZN's earnings (44.5% per year) are forecast to grow faster than the US market (12.5% 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 (7.8% 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 (15.9%).

Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

42.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AMZN has a high level of non-cash earnings.

Growing Profit Margin: AMZN's current net profit margins (4.5%) are lower than last year (6.4%).

Past Earnings Growth Analysis

Earnings Trend: AMZN's earnings have grown significantly by 42.2% per year over the past 5 years.

Accelerating Growth: AMZN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AMZN had negative earnings growth (-20.4%) over the past year, making it difficult to compare to the Online Retail industry average (-8.3%).

Return on Equity

High ROE: AMZN's Return on Equity (16%) is considered low.

Financial Health

How is Amazon.com's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AMZN's short term assets ($133.9B) do not cover its short term liabilities ($139.5B).

Long Term Liabilities: AMZN's short term assets ($133.9B) do not cover its long term liabilities ($137.3B).

Debt to Equity History and Analysis

Debt Level: AMZN's net debt to equity ratio (1.2%) is considered satisfactory.

Reducing Debt: AMZN's debt to equity ratio has increased from 40.3% to 50.8% over the past 5 years.

Debt Coverage: AMZN's debt is well covered by operating cash flow (57.8%).

Interest Coverage: AMZN's interest payments on its debt are well covered by EBIT (13.9x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AMZN has not reported any payouts.

Discover strong dividend paying companies

Management

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

6.6yrs

Average management tenure

CEO

Andy Jassy (53 yo)

0.83

Tenure

US$212,701,169

Compensation

Mr. Andrew R. Jassy, also known as Andy, has been President, Chief Executive Officer and Director at Amazon.com, Inc. since July 5, 2021. He served as Chief Executive Officer of Amazon Web Services Inc. at...

CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD212.70M) is above average for companies of similar size in the US market ($USD13.34M).

Compensation vs Earnings: Andy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: AMZN's management team is seasoned and experienced (6.6 years average tenure).

Board Members

Experienced Board: AMZN's board of directors are considered experienced (6.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31