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(NasdaqGS:AMZN) - Share price, News & Analysis - Simply Wall St

Stocks / United States / Retail / NasdaqGS:AMZN



MARKET CAP US$1.2t LAST UPDATED 2020/05/21 00:25 UTC DATA SOURCES Company Financials +45 Analysts

1 Executive Summary

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

Earnings are forecast to grow 37.94% per year RISK ANALYSIS

Highly volatile share price over past 3 months

See All Risk Checks

SNOWFLAKE ANALYSIS

Flawless balance sheet with high growth potential.

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SIMILAR COMPANIES

Alibaba Group Holding NYSE:BABA

NASDAQGS:JD

MercadoLibre NASDAQGS:MELI

2 Share Price & News

How has 's share price performed over time and what events caused price changes?

2.1 Latest Share Price and Events

1M

3M

1Y

2016

2017

2018

Max: US$2,497.94

3Y 2019

5Y

Max

2020

Wed, 20 May 2020 US$2,497.94

Min: US$1,676.61 Jun 19

Sep 19

Dec 19

Mar 20

M&A

Product Update Legal Issues Expansion Product Update Expansion Legal Issues Expansion

Strategy

Other

Financial

Management

Dividend

Stable Share Price: AMZN's share price has been volatile over the past 3 months.

2.2 Market Performance

7 Day Return

4.6%

AMZN

5.8%

US Online Retail

4.3%

US Market

1 Year Return

37.6%

AMZN

34.5%

US Online Retail

3.1%

US Market

Return vs Industry: AMZN exceeded the US Online Retail industry which returned 34.5% over the past year. Return vs Market: AMZN exceeded the US Market which returned 3.1% over the past year.

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Shareholder returns

7 Day 30 Day 90 Day 1 Year 3 Year 5 Year

AMZN 4.6% 7.3%

19.2% 37.6% 151.5% 485.6%

Industry 5.8% 7.6%

10.5% 34.5% 93.8% 205.1%

Include Dividend Returns

Market 4.3% 7.4%

-12.2% 3.1%

20.0% 34.6%

Price Volatility Vs. Market

How volatile is 's share price compared to the market and industry in the last 5 years?

AMZN

Low

High

Industry

Avg. Market Volatility

2.3 Simply Wall St News

6 days ago | Simply Wall St

Calculating The Fair Value Of , Inc. (NASDAQ:AMZN)

2 weeks ago | Simply Wall St

4 weeks ago | Simply Wall St

Earnings Miss: , Inc. Is , Inc.

Missed EPS By 18% And Analysts (NASDAQ:AMZN) Potentially

Are Revising Their Forecasts

Undervalued?

3 Valuation

Is undervalued compared to its fair value and its price relative to the market? Analysis Checks 0/6

117.25x

Price to Earnings (PE) ratio

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3.1 Share Price vs. Fair Value

(NasdaqGS:AMZN) - Share price, News & Analysis - Simply Wall St

27.2%

Overvalued

Current Price

US$2,497.94

Fair Value

US$1,963.88

20% Undervalued

About

Right 20%

Overvalued

Below Fair Value: AMZN ($2497.94) is trading above our estimate of fair value ($1963.88) Signi cantly Below Fair Value: AMZN is trading above our estimate of fair value.

3.2 Price To Earnings Ratio

30x

20x

40x

10x

50x

0x

60x

PE Ratio

Company

Industry Market

117.2x

23.2x 14.8x

PE vs Industry: AMZN is poor value based on its PE Ratio (117.2x) compared to the Online Retail industry average (23.2x). PE vs Market: AMZN is poor value based on its PE Ratio (117.2x) compared to the US market (14.8x).

3.3 Price to Earnings Growth Ratio

2x

1x

3x

0x

4x

PEG Ratio

Company

3.1x

PEG Ratio: AMZN is poor value based on its PEG Ratio (3.1x)

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3.4 Price to Book Ratio

5x

(NasdaqGS:AMZN) - Share price, News & Analysis - Simply Wall St

10x 15x

0x

20x

PB Ratio

Company

Industry Market

19.1x

2.8x 1.5x

PB vs Industry: AMZN is overvalued based on its PB Ratio (19.1x) compared to the US Online Retail industry average (2.8x).

3.5 Next Steps

Explore potentially undervalued companies in the Retail industry.

4 Future Growth

How is forecast to perform in the next 1 to 3 years based on estimates from 45 analysts?

Analysis Checks 5/6

37.9%

Forecasted annual earnings growth

4.1 Earnings and Revenue Growth Forecasts

US$650b

Mar 31 2020 Revenue US$296.274b /yr Earnings US$10.562b /yr

Past Analysts Forecasts

US$0

2018

2019

2020

2021

2022

Revenue

Earnings

Free Cash Flow

Cash From Op

2023

2024

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4.2 Analyst Future Growth Forecasts

37.9%

Company

32.9%

Industry

21.3%

Market

14.8%

Company

16.9%

Industry

8.9%

Market

Forecast Annual Earnings Growth

Forecast Annual Revenue Growth

Earnings vs Savings Rate: AMZN's forecast earnings growth (37.9% per year) is above the savings rate (2.2%). Earnings vs Market: AMZN's earnings (37.9% per year) are forecast to grow faster than the US market (21.3% per year). High Growth Earnings: earnings are expected to grow signi cantly over the next 3 years. Revenue vs Market: AMZN's revenue (14.8% per year) is forecast to grow faster than the US market (8.9% per year). High Growth Revenue: AMZN's revenue (14.8% per year) is forecast to grow slower than 20% per year.

4.3 Earnings per Share Growth Forecasts

Mar 31 2020 EPS Analysts' EPS Range

US$21.305 No data

US$140

Actual Analysts Forecasts

US$10

2019

2020

EPS

Analysts' EPS Range

2021

2022

2023

2024

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4.4 Future Return on Equity

10%

(NasdaqGS:AMZN) - Share price, News & Analysis - Simply Wall St

20% 30%

0%

40%

Future ROE (3yrs)

Company

22.5%

Industry

10.5%

Future ROE: AMZN's Return on Equity is forecast to be high in 3 years time (22.5%)

4.5 Next Steps

Explore growth companies in the Retail industry.

5 Past Performance

How has performed over the past 5 years?

Analysis Checks 2/6

55.2%

Historical annual earnings growth

5.1 Earnings and Revenue History

US$300b

Mar 31 2020 Revenue US$296.274b /yr Earnings US$10.562b /yr

3.6% pro t margin

US$0

-US$50b

2014

2015

2016

Revenue

Earnings

Free Cash Flow

2017

2018

2019

Cash From Op

Operating Expenses

2020

Quality Earnings: AMZN has high quality earnings. Growing Pro t Margin: AMZN's current net pro t margins (3.6%) are lower than last year (5%).

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5.2 Past Earnings Growth Analysis

55.2%

Company

20.7%

Industry

13.5%

Market

Past 5 Years Annual Earnings Growth

-12.0%

Company

Industry

4.3%

Last 1 Year Earnings Growth

Market

2.3%

Earnings Trend: AMZN has become pro table over the past 5 years, growing earnings by 55.2% per year.

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

Earnings vs Industry: AMZN had negative earnings growth (-12%) over the past year, making it di cult to compare to the Online Retail industry average (4.3%).

5.3 Return on Equity

20%

10%

30%

0%

40%

ROE

Company

Industry

16.2%

10.5%

High ROE: AMZN's Return on Equity (16.2%) is considered low.

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