Amazon.com, Inc.

Rank #197Op. Leverage

AMZN · Nasdaq · Consumer Cyclical

Amazon.com, Inc. (AMZN) — Rank #197 by gross profitability (GP/assets 0.33) · ROE 14.1% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · 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.

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

Price History

AMZN+44.5% · +7.6% CAGRSPY+80.3% · +12.5% CAGR

Company Snapshot

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

Market Cap

$2.69T

P/E (annual)

34.8

P/S (annual)

3.7

P/B

4.9

P/OCF (annual)

19.3

Shareholder Yield

-1.0%

Employees

1,595,000

Industry

Internet Retail

Exchange

Nasdaq

Signal Flags

4 green

Revenue growth acceleratingGrowth rate increasing year over year

Operating leverage expandingOperating income growing faster than revenue

Deferred revenue growingRevenue and deferred revenue both growing — retention signal

Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak

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%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

48.6%

stretched

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 1.0% — per-share value needs a total required return of 49.6% once share-count change is priced in.

vs. own 6-year median revenue growth: 12.1%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

42.1%

r = 10% (base)

48.6%

r = 12%

54.2%

Net debt / market cap: 0.4%

Base FCF: $7.7B3Y mean FCF: $24.3B

Valuation History

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

P / E

Price / diluted EPS

29.3xExpensive

2.4xmed 13.2x59.2x

P / S

Price / revenue per share

3.2xExpensive

0.2xmed 0.3x3.9x

P / B

Price / book value per share

5.5xFair

0.6xmed 1.7x8.9x

P / GP

Price / gross profit per share

6.3xExpensive

0.4xmed 0.7x7.9x

P / FCF

Price / free cash flow per share

295.9xExpensive

2.3xmed 5.2x295.9x

Earnings bubble check

Current margins may be above sustainable levels — a P/E based on peak earnings can overstate cheapness.

Gross margin50.3% now vs 39.6%–50.3% 10yr range

1.8σ above average

Operating margin11.2% now vs 2.4%–11.2% 10yr range

1.8σ above average

Net margin10.8% now vs -0.5%–10.8% 10yr range

1.7σ above average

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

Profitability

Gross profitability (GP / assets)

0.33

Primary signal (Novy-Marx).

7th of 7 SIC 5961 peers

Return on equity

14.1%

Gross margin

50.3%

3rd of 7 SIC 5961 peers

Revenue growth (YoY)

12.4%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

	2022	2023	2024	2025
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)

—

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.99

Current ratio

1.03×

7th of 7 SIC 5961 peers

Quick ratio

0.87×

Net cash

-$9.56B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$7.70B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.90

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

2.7%

Stock-based comp intensity.

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

2020-2021

2022

2023-2025

20202025

Hypergrowth

Startup

Op. Leverage

View full financial statements →