NasdaqGS:AMZN

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 25.25% per year

Earnings have grown 60.1% per year over the past 5 years

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

2.5%

AMZN

-2.6%

US Online Retail

-2.6%

US Market


1 Year Return

8.8%

AMZN

-1.1%

US Online Retail

-13.3%

US Market

Return vs Industry: AMZN exceeded the US Online Retail industry which returned -1.1% over the past year.

Return vs Market: AMZN exceeded the US Market which returned -13.3% over the past year.


Shareholder returns

AMZNIndustryMarket
7 Day2.5%-2.6%-2.6%
30 Day5.1%-5.1%-15.2%
90 Day5.6%-8.3%-22.2%
1 Year8.8%8.8%-1.0%-1.1%-11.5%-13.3%
3 Year121.4%121.4%68.0%67.8%13.2%5.7%
5 Year418.7%418.7%167.5%156.1%31.8%17.2%

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?

85.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AMZN ($1997.59) is trading above our estimate of fair value ($1888.3)

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 (85.2x) compared to the Online Retail industry average (21.2x).

PE vs Market: AMZN is poor value based on its PE Ratio (85.2x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: AMZN is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: AMZN is overvalued based on its PB Ratio (16x) compared to the US Online Retail industry average (2.1x).


Next Steps

Future Growth

How is Amazon.com forecast to perform in the next 1 to 3 years based on estimates from 41 analysts?

25.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMZN's forecast earnings growth (25.3% per year) is above the savings rate (1.7%).

Earnings vs Market: AMZN's earnings (25.3% per year) are forecast to grow faster than the US market (13.4% 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% 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 18.4%.


Return on Equity

High ROE: AMZN's Return on Equity (18.7%) 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 ($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


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?

6.2yrs

Average management tenure


CEO

Jeff Bezos (55yo)

23.92s

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 ($USD1.68M) is below average for companies of similar size in the US market ($USD11.96M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Bezos
Founder23.92yrsUS$1.68m11.16% $111.0b
Brian Olsavsky
Senior VP & CFO4.83yrsUS$6.93m0.00032% $3.2m
Jeffrey Wilke
Chief Executive Officer of Worldwide Consumer4yrsUS$19.72m0.011% $111.3m
Andrew Jassy
Chief Executive Officer of Amazon Web Services Inc.4yrsUS$19.73m0.020% $200.8m
Shelley Reynolds
VP, Worldwide Controller & Principal Accounting Officer13yrsUS$613.43k0.0012% $12.2m
Werner Vogels
Chief Technology Officerno datano datano data
David Zapolsky
Senior VP7.58yrsno data0.00087% $8.7m
Ragia Samir
Head of Marketing2.25yrsno datano data
Steven Kessel
Senior Vice President14yrsno datano data
Douglas Gurr
UK Country Managerno datano datano data

6.2yrs

Average Tenure

54yo

Average Age

Experienced Management: AMZN's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Bezos
Founder23.92yrsUS$1.68m11.16% $111.0b
Jonathan Rubinstein
Lead Director3.25yrsno data0.0016% $15.9m
Wendell Weeks
Independent Director4.17yrsno data0.00031% $3.1m
Indra Nooyi
Independent Director1.17yrsno data0.000090% $895.1k
Jamie Gorelick
Independent Director8.17yrsUS$952.74k0.0013% $12.8m
Thomas Ryder
Independent Director17.42yrsno data0.0019% $18.6m
Patricia Stonesifer
Independent Director23.17yrsno data0.0014% $13.6m
Judith McGrath
Independent Director5.75yrsno data0.00047% $4.7m
Daniel Huttenlocher
Independent Director3.58yrsno data0.00019% $1.9m
Rosalind Brewer
Independent Director1.17yrsno data0.000040% $397.8k

5.0yrs

Average Tenure

62yo

Average Age

Experienced Board: AMZN's board of directors are considered experienced (5 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$994.512b
  • Shares outstanding: 497.86m
  • 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
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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 03:16
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
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.