Amazon.com, Inc.AMZN
NASDAQ • Consumer Cyclical
$259.34
P/E
30.55
PEG
0.40
FCF Yield
0.3%
Rev Growth YoY
+16.6% YoY
Gross Margin
51.8%
Health Score
8/10
D/E Ratio
0.37
Confidence
HIGH
Business Snapshot
Amazon operates a dominant e-commerce marketplace and a leading cloud infrastructure platform (AWS), which together drive the vast majority of its revenue. The company competes in specialty retail and cloud computing, holding a top-tier market position with unmatched scale and network effects across logistics, digital content, and enterprise services. With a market capitalisation of $2.85T, it is a mega-cap company generating $742.78B in trailing twelve-month revenue. The defining characteristic is its massive, self-reinforcing ecosystem where consumer traffic fuels merchant adoption, which in turn funds infrastructure investments that improve the customer experience.
Financial Health
Gross margin improved to 51.8% from 48.5% a year ago, while net margin reached 12.2%, reflecting strong operating leverage. The balance sheet is very conservative, with a debt-to-equity ratio of just 0.37x and a current ratio of 1.05x, indicating ample liquidity to cover short-term obligations...
Risk Assessment
- VALUATION — P/E of 30.55x is elevated versus the sector average of 24x, leaving limited margin of safety if growth slows.
- VALUATION DIVERGENCE — FMP DCF fair value of $72.07 and Python DCF of $15.52 differ by more than 75%, underscoring the uncertainty in intrinsic value estimates.
- EARNINGS QUALITY — Only two of the last four quarters beat analyst estimates, indicating guidance credibility is not flawless.
- REVENUE DECELERATION — Quarterly revenue dropped 14.9% sequentially, which, while seasonal, contrasts sharply with the 16.6% YoY growth and may amplify near-term volatility.
- FCF / CASH BURN — Absolute free cash flow of $7.70B yields only 0.3%, meaning the stock price embeds very little cash return to shareholders....