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Amazon.com, Inc.

Rank #185Op. LeverageWatchlistCompare with other stocks

AMZN · Nasdaq · Consumer Cyclical

Amazon.com, Inc. (AMZN) — Rank #185 by gross profitability (GP/assets 0.33) · ROE 14.1% · Piotroski F-Score 6 / 9.

As-of 2026-10-30 · CIK 0001018724 · all metrics point-in-time as of the filing date.

About

Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally.

Show more

The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, fire tablets, fire TVs, echo, ring, blink, and eero; and develops and produces media content. In addition, the company offers programs that enable sellers to sell their products in its stores; and programs that allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content. Further, it provides compute, storage, Artificial intelligence, database, analytics, machine learning, and other services, as well as advertising services through programs, such as sponsored ads, display, and video advertising. Additionally, the company offers Amazon Prime, a membership program. The company's products offered through its stores include merchandise and content purchased for resale and products offered by third-party sellers. It serves consumers, sellers, developers, enterprises, content creators, advertisers, and employees.

The company was incorporated in 1994 and is headquartered in Seattle, Washington.

Industry
Internet Retail
Sector
Consumer Cyclical
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
amazon.com

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

1,595,000

Industry

Internet Retail

Exchange

Nasdaq

12/12

Flags passed

AMZN passes 12/12 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Operating leverage expanding · Deferred revenue growing · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.33
Return on equity
14.1%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.99
Current ratio
1.03×
Net cash
-$9.56B

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
2.7%

Growth

2/2 pass
Revenue growth
12.4%
Piotroski F-Score
6 / 9
Share dilution
1.0%

Operating margin expansion and free cash flow are the primary reads at this stage.

Profitability

Does it make money well?

No warning flags · GP/assets 0.33

Gross profitability (GP / assets)

0.33

Primary signal (Novy-Marx).

9th of 11 SIC 59 peers

Return on equity

14.1%

Gross margin

50.3%

4th of 11 SIC 59 peers

Revenue growth (YoY)

12.4%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

11.7%

Revenue CAGR (5Y)

13.2%

Earnings CAGR (3Y)

—

FCF CAGR (3Y)

—

Cash Flow Health

Is the cash real?

No warning flags · FCF 90% below net income

Free cash flow

$7.70B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

-90.1%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

2.7%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net debt $9.56B, F-Score 6/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.99

4th of 10 SIC 59 peers (best = lowest)

Current ratio

1.03×

11th of 11 SIC 59 peers

Quick ratio

0.87×

Net cash

-$9.56B

Cash & equivalents minus total debt.

Piotroski F-Score

6 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

29.3xCheap
29.3xmed 48.6x79.1x

P / S

Price / revenue per share

3.2xFair
2.0xmed 3.3x4.4x

P / B

Price / book value per share

5.5xCheap
5.5xmed 8.8x18.1x

P / GP

Price / gross profit per share

6.3xCheap
4.7xmed 7.3x11.1x

P / FCF

Price / free cash flow per share

295.8xExpensive
56.0xmed 69.9x295.8x

Capital allocation quality

Composite score

2.7 / 5

Fair
Share count trend
1.0%2/5 Fair
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory(deleveraging)
1.3%3/5 Good

Lifecycle Phase History

20202025
Hypergrowth
Startup
Op. Leverage

Price History

AMZN+44.0% · +7.5% CAGRSPY+85.8% · +13.1% CAGR

View full financial statements →

Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports