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Amazon.com

SNSE: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
SNSE
$885B
Market Cap
  1. Home
  2. CL
  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 17 days ago. More info.


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AMZN Share Price and Events
7 Day Returns
0%
SNSE:AMZN
0.3%
Global Online Retail
-2.1%
CL Market
1 Year Returns
6%
SNSE:AMZN
12.1%
Global Online Retail
-12.1%
CL Market
AMZN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Amazon.com (AMZN) 0% 2.6% -3.3% 6% 140.5% 434.2%
Global Online Retail 0.3% 3.1% 2.6% 12.1% 87.7% 127.4%
CL Market -2.1% -9.2% -5.6% -12.1% 3.3% -1%
1 Year Return vs Industry and Market
  • AMZN underperformed the Online Retail industry which returned 12.1% over the past year.
  • AMZN outperformed the Market in Chile which returned -12.1% 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.

SNSE: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 42 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.7%
Perpetual Growth Rate 10-Year CL Government Bond Rate 2.7%

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 SNSE:AMZN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CL Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Online Retail Unlevered Beta Simply Wall St/ S&P Global 1.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.642 (1 + (1- 21%) (8.42%))
1.503
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.5
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.503 * 5.96%)
11.69%

Discounted Cash Flow Calculation for SNSE: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 try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

SNSE:AMZN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.69%)
2020 32,980.72 Analyst x13 29,528.92
2021 42,994.43 Analyst x10 34,465.71
2022 55,527.98 Analyst x5 39,854.23
2023 68,138.76 Analyst x5 43,786.91
2024 77,651.65 Est @ 13.96% 44,677.45
2025 85,876.32 Est @ 10.59% 44,238.31
2026 92,946.71 Est @ 8.23% 42,869.33
2027 99,064.69 Est @ 6.58% 40,909.02
2028 104,440.52 Est @ 5.43% 38,615.06
2029 109,263.17 Est @ 4.62% 36,170.04
Present value of next 10 years cash flows $395,114.00
SNSE:AMZN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $109,263.17 × (1 + 2.73%) ÷ (11.69% – 2.73%)
$1,252,811.36
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,252,811.36 ÷ (1 + 11.69%)10
$414,725.67
SNSE:AMZN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $395,114.00 + $414,725.67
$809,839.67
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $809,839.67 / 495.80
$1633.41
SNSE:AMZN Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in SNSE:AMZN represents 0.98758x of NasdaqGS:AMZN
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.98758x
Value per Share
(Listing Adjusted, USD)
= Value per Share (USD) x Listing Adjustment Factor
= $ 1,633.41 x 0.98758
$1,613.12
Value per share (USD) From above. $1,613.12
Current discount Discount to share price of $1,763.70
= -1 x ($1,763.70 - $1,613.12) / $1,613.12
-9.3%

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
SNSE:AMZN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $23.05
NasdaqGS:AMZN Share Price ** NasdaqGS (2019-11-08) in USD $1785.88
Global Online Retail Industry PE Ratio Median Figure of 102 Publicly-Listed Online Retail Companies 21.81x
Chile Market PE Ratio Median Figure of 133 Publicly-Listed Companies 13.26x

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

** Primary Listing of Amazon.com.

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

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

= 1785.88 ÷ 23.05

77.47x

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 Global Online Retail industry average.
  • Amazon.com is overvalued based on earnings compared to the Chile market.
Price based on expected Growth
Does Amazon.com's expected growth come at a high price?
Raw Data
SNSE:AMZN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 77.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 42 Analysts
31%per year
Global Online Retail Industry PEG Ratio Median Figure of 59 Publicly-Listed Online Retail Companies 1.59x
Chile Market PEG Ratio Median Figure of 28 Publicly-Listed Companies 0.94x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 77.47x ÷ 31%

2.5x

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
SNSE:AMZN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $114.16
NasdaqGS:AMZN Share Price * NasdaqGS (2019-11-08) in USD $1785.88
Global Online Retail Industry PB Ratio Median Figure of 218 Publicly-Listed Online Retail Companies 2.24x
Chile Market PB Ratio Median Figure of 160 Publicly-Listed Companies 1.05x
SNSE:AMZN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 1785.88 ÷ 114.16

15.64x

* 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 Global 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 42 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
31%
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 2.7%.
Growth vs Market Checks
  • Amazon.com's earnings growth is expected to exceed the Chile market average.
  • Amazon.com's revenue growth is expected to exceed the Chile market average.
Annual Growth Rates Comparison
Raw Data
SNSE:AMZN Future Growth Rates Data Sources
Data Point Source Value (per year)
SNSE:AMZN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 42 Analysts 31%
SNSE:AMZN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 42 Analysts 15.2%
Global Online Retail Industry Earnings Growth Rate Market Cap Weighted Average 26.4%
Global Online Retail Industry Revenue Growth Rate Market Cap Weighted Average 17.3%
Chile Market Earnings Growth Rate Market Cap Weighted Average 11.1%
Chile Market Revenue Growth Rate Market Cap Weighted Average 6%

*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
SNSE:AMZN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 42 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SNSE:AMZN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 506,172 93,650 37,199 10
2022-12-31 446,401 77,859 28,252 13
2021-12-31 385,822 60,889 20,411 28
2020-12-31 330,613 49,253 13,546 42
2019-12-31 279,068 38,661 10,345 38
2019-11-11
SNSE:AMZN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 265,469 35,332 11,347
2019-06-30 252,063 36,028 12,096
2019-03-31 241,545 34,360 12,005
2018-12-31 232,887 30,723 10,073
2018-09-30 220,957 26,604 8,903
2018-06-30 208,125 21,793 6,275
2018-03-31 193,194 18,193 3,938
2017-12-31 177,866 18,365 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 17,203 2,371

*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 15.2% 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
SNSE:AMZN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 42 Analyst Estimates (S&P Global) See Below

All data from Amazon.com Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SNSE:AMZN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 70.16 87.81 61.40 6.00
2022-12-31 53.99 69.63 42.87 10.00
2021-12-31 39.10 47.51 28.70 26.00
2020-12-31 27.22 34.87 16.63 43.00
2019-12-31 20.57 21.61 18.72 41.00
2019-11-11
SNSE:AMZN Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 23.05
2019-06-30 24.66
2019-03-31 24.56
2018-12-31 20.68
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

*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 Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global 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 is less than its 5-year average (27.5% vs 64.1%)
  • Amazon.com's earnings growth has exceeded the Global Online Retail industry average in the past year (27.5% vs -7.2%).
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 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SNSE:AMZN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 265,469.00 11,347.00 60,595.00 33,860.00
2019-06-30 252,063.00 12,096.00 56,947.00 31,822.00
2019-03-31 241,545.00 12,005.00 54,352.00 29,710.00
2018-12-31 232,887.00 10,073.00 52,177.00 28,837.00
2018-09-30 220,957.00 8,903.00 49,578.00 27,482.00
2018-06-30 208,125.00 6,275.00 45,969.00 27,113.00
2018-03-31 193,194.00 3,938.00 43,518.00 24,186.00
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 32,184.00 18,193.00
2017-03-31 142,573.00 2,582.00 29,165.00 17,283.00
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

*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 more efficiently than the Global Online Retail industry average last year based on Return on Assets.
  • Amazon.com has 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 3.1x 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 1 month ago.

SNSE:AMZN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 56,508.00 25,313.00 43,401.00
2019-06-30 53,061.00 24,965.00 41,463.00
2019-03-31 48,410.00 24,930.00 37,020.00
2018-12-31 43,549.00 24,866.00 41,250.00
2018-09-30 39,125.00 24,728.00 29,765.00
2018-06-30 34,995.00 24,669.00 27,050.00
2018-03-31 31,463.00 24,693.00 24,963.00
2017-12-31 27,709.00 24,843.00 30,986.00
2017-09-30 24,658.00 25,747.00 24,310.00
2017-06-30 23,214.00 8,746.00 21,451.00
2017-03-31 21,674.00 8,740.00 21,531.00
2016-12-31 19,285.00 8,750.00 25,981.00
2016-09-30 17,782.00 8,253.00 18,347.00
2016-06-30 16,538.00 8,253.00 16,540.00
2016-03-31 14,756.00 8,309.00 15,859.00
2015-12-31 13,384.00 8,465.00 19,808.00
2015-09-30 12,430.00 9,360.00 14,428.00
2015-06-30 11,768.00 9,509.00 14,001.00
2015-03-31 10,873.00 9,634.00 13,781.00
2014-12-31 10,741.00 9,785.00 17,416.00
2014-09-30 10,336.00 3,963.00 6,883.00
2014-06-30 10,602.00 3,979.00 7,986.00
2014-03-31 10,328.00 3,931.00 8,666.00
2013-12-31 9,746.00 3,944.00 12,447.00
2013-09-30 9,087.00 3,723.00 7,689.00
2013-06-30 8,733.00 3,733.00 7,463.00
2013-03-31 8,432.00 3,692.00 7,895.00
2012-12-31 8,192.00 3,663.00 11,448.00
  • Amazon.com's level of debt (44.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (38.8% vs 44.8% today).
  • Debt is well covered by operating cash flow (139.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 18.8x 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
SNSE: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 42 Analyst Estimates (S&P Global) See Below
Global Online Retail Industry Average Dividend Yield Market Cap Weighted Average of 46 Stocks 1%
Chile Market Average Dividend Yield Market Cap Weighted Average of 132 Stocks 4.1%
Chile Minimum Threshold Dividend Yield 10th Percentile 0.8%
Chile Bottom 25% Dividend Yield 25th Percentile 2.1%
Chile Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

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

SNSE:AMZN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 6.00
2020-12-31 0.00 7.00
2019-12-31 0.00 7.00
2019-11-11

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 Chile.
X
Income/ dividend checks
We assess Amazon.com's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - 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 55
TENURE AS CEO 23.5 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, both up more than 20%.
  • Insufficient data for Jeff to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure and age of the Amazon.com management team in years:

4.4
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
55
TENURE
23.5 yrs

Brian Olsavsky

TITLE
Senior VP & CFO
COMPENSATION
$7M
AGE
55
TENURE
4.4 yrs

Jeffrey Blackburn

TITLE
Senior Vice President of Business Development
COMPENSATION
$10M
AGE
49
TENURE
13.6 yrs

Jeff Wilke

TITLE
Chief Executive Officer of Worldwide Consumer
COMPENSATION
$20M
AGE
52
TENURE
3.6 yrs

Andy Jassy

TITLE
Chief Executive Officer of Amazon Web Services Inc.
COMPENSATION
$20M
AGE
51
TENURE
3.6 yrs

David Zapolsky

TITLE
Senior VP
AGE
55
TENURE
7.2 yrs

Ragia Samir

TITLE
Head of Marketing
TENURE
1.8 yrs

Steven Kessel

TITLE
Senior Vice President
AGE
53
TENURE
13.6 yrs

Doug Gurr

TITLE
UK Country Manager

Albert Cheng

TITLE
COO of Amazon Studios & Co-Head of Television
TENURE
1.6 yrs
Board of Directors Tenure

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

4.5
Average Tenure
62
Average Age
  • The tenure for the Amazon.com board of directors is about average.
Board of Directors

Jeff Bezos

TITLE
Founder
COMPENSATION
$2M
AGE
55
TENURE
25.8 yrs

Tom Ryder

TITLE
Independent Director
AGE
74
TENURE
17 yrs

Jamie Gorelick

TITLE
Independent Director
COMPENSATION
$953K
AGE
68
TENURE
7.8 yrs

Judy McGrath

TITLE
Independent Director
AGE
66
TENURE
5.3 yrs

Jon Rubinstein

TITLE
Lead Director
AGE
62
TENURE
2.8 yrs

Patty Stonesifer

TITLE
Independent Director
AGE
62
TENURE
22.8 yrs

Wendell Weeks

TITLE
Independent Director
AGE
59
TENURE
3.8 yrs

Dan Huttenlocher

TITLE
Independent Director
AGE
60
TENURE
3.2 yrs

Rosalind Brewer

TITLE
Independent Director
AGE
56
TENURE
0.8 yrs

Indra Nooyi

TITLE
Independent Director
AGE
63
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. May 19 Sell Indra Nooyi Individual 05. Mar 19 03. Apr 19 -68 $1,825.05 $-116,941
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

Simply Wall St News

AMZN Company Info

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 third-party sellers through physical stores and online stores. The company also manufactures and sells electronic devices, including Kindle e-readers, Fire tablets, Fire TVs, and Echo 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 their own branded Websites; 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 compute, storage, database offerings, 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 streaming of movies and TV episodes; and other services. It serves consumers, sellers, developers, enterprises, and content creators. Amazon.com, Inc. has a strategic partnership with Volkswagen AG. The company was founded in 1994 and is headquartered in Seattle, Washington.

Details
Name: Amazon.com, Inc.
AMZN
Exchange: SNSE
Founded: 1994
$885,434,339,253
495,797,220
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
BASE AMZN CEDEAR EACH 72 REPR 1 COM USD0.01 Buenos Aires Stock Exchange AR ARS 10. Apr 2019
Number of employees
Current staff
Staff numbers
647,500
Amazon.com employees.
Industry
Internet and Direct Marketing Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/11 18:08
End of day share price update: 2019/11/08 00:00
Last estimates confirmation: 2019/11/08
Last earnings filing: 2019/10/25
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


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.