Amazon.com, Inc.AMZN
NMS • Consumer Cyclical
$242.67
P/E
28.58
PEG
0.37
FCF Yield
0.3%
Rev Growth YoY
+16.6% YoY
Gross Margin
51.8%
Health Score
8/10
D/E Ratio
0.27
Confidence
MEDIUM
Business Snapshot
Amazon.com operates as a global e-commerce platform and cloud computing provider, generating revenue from online retail sales, third-party seller services, subscription fees, and Amazon Web Services (AWS). The company competes across multiple sectors including internet retail, cloud infrastructure, digital advertising, and streaming media, where it holds dominant or leadership positions in each. As a large-cap company with a $2.61 trillion market capitalisation and $742.78 billion in trailing twelve-month revenue, Amazon possesses exceptional financial scale and resources. The company's defining characteristic is its diversified business model combining high-margin, cash-generating AWS with its vast retail ecosystem, creating cross-subsidisation advantages and significant barriers to entry.
Financial Health
Gross margin improved to 51.8% from 48.5% in the prior year, while net margin reached 12.2%, reflecting meaningful operating leverage. The balance sheet carries conservative leverage with a debt/equity ratio of just 0.27x and a current ratio of 1.18x, indicating ample liquidity to meet short-term obligations...
Risk Assessment
- REVENUE DECELERATION — Sequential quarterly revenue declined 14.9% from Q2 to Q1, contrasting sharply with the strong 16.6% year-over-year growth, signalling significant seasonal volatility that investors must factor into forward estimates.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- FCF / CASH BURN — Free cash flow of $7.70 billion generates a yield of only 0.3%, indicating the current market price offers minimal cash return relative to enterprise value.
- 52-WEEK POSITION — The current price of $242.67 sits below the midpoint of the 52-week range ($237.28), and is $35.89 below the 52-week high of $278.56, suggesting the stock has lost ground from its peak.
- VALUATION DIVERGENCE — The Python DCF estimate of $15.44 diverges dramatically from any potential fair value derived from earnings multiples, though no FMP DCF figure was available for direct comparison, creating uncertainty around any single intrinsic value estimate....
Gross margin improved to 51.8% from 48.5% in the prior year, while net margin reached 12.2%, reflecting meaningful operating leverage. The balance sheet carries conservative leverage with a debt/equity ratio of just 0.27x and a current ratio of 1.18x, indicating ample liquidity to meet short-term obligations. Return on equity stands at a robust 24.3%, demonstrating efficient capital allocation. Free cash flow totals $7.70 billion, though the free cash flow yield of 0.3% is low relative to the company's market capitalisation. Overall financial health is strong, supporting ongoing reinvestment in infrastructure, logistics, and AI initiatives without requiring equity dilution.
- REVENUE DECELERATION — Sequential quarterly revenue declined 14.9% from Q2 to Q1, contrasting sharply with the strong 16.6% year-over-year growth, signalling significant seasonal volatility that investors must factor into forward estimates. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - FCF / CASH BURN — Free cash flow of $7.70 billion generates a yield of only 0.3%, indicating the current market price offers minimal cash return relative to enterprise value. - 52-WEEK POSITION — The current price of $242.67 sits below the midpoint of the 52-week range ($237.28), and is $35.89 below the 52-week high of $278.56, suggesting the stock has lost ground from its peak. - VALUATION DIVERGENCE — The Python DCF estimate of $15.44 diverges dramatically from any potential fair value derived from earnings multiples, though no FMP DCF figure was available for direct comparison, creating uncertainty around any single intrinsic value estimate.
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