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Amazon.com (AMZN): Valuation, Growth, Profitability & Risk vs Peers — StockQuotient

AMZN Consumer Cyclical

Amazon.com, Inc.

$254.06-2.25%

Price as of close on Oct 8, 2026 · Financials updated Oct 6, 2026

Basics

Sector: Consumer Cyclical
Industry: Internet Retail
Country: United States
Market cap: 2.74T USD
Enterprise value: 2.72T USD
Full-time employees: 1,595,000

Overall health

Strength: more profitable than most peersmore profitable than peers
Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings
Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 1.46 vs a peer median of 0.64) and less short-term liquidity (current ratio 1.03 vs a peer median of 1.49)higher risk: bigger price swings (beta 1.46 vs peers 0.64) and less liquidity (current ratio 1.03 vs peers 1.49)

Ranks #548 of 1,502 consumer cyclical companies (top 37%)

See how it ranks against its peers

Worth knowing

Profitable, but burning cash. Reports a profit, but free cash flow is negative.
Amazon.com reports a profit but its free cash flow is negative: it spent more on investment and running the business than it brought in. That's common for companies building capacity, but it means the profit isn't yet turning into cash.
Valuation signals disagree. Cheaper than 54% of peers on earnings, but only 0% on free cash flow.
Relative to its earnings, Amazon.com looks cheaper than 54% of peers; relative to its free cash flow, cheaper than only 0%. The valuation score blends the two, so look at which measure fits this business best.
Profit recovered from an unusually weak 2022. Since 2022 (an unusually weak year for operating profit): revenue +39%, operating profit +553%.Since 2022: revenue +39%, operating profit +553%.
Since 2022, Amazon.com's revenue grew 39% while operating profit grew 553%: each extra dollar of sales is adding more profit.
Annual revenue rose 5 years in a row. Fiscal-year revenue rose from $386.1B in 2020 to $716.9B in 2025.
Amazon.com's fiscal-year revenue rose in each of the five years to 2025, from $386.1B to $716.9B.

StockQuotient Score

58/ 100▼ 1 since Oct 1 close

Oct 1 59 → Oct 9 58 (-1)

Valuation

Is the price right?

33/100

Weak▼ 1 since Oct 1 close

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why it changed since the Oct 1, 2026 close: Score 34 → 33

Share price +2.3%-1

Each step re-scores the company against its peers as they were on Oct 2, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Weaker than most peers on:

▼ FCF yield
▼ EBITDA yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield4.9%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score 0.14Sector median: 0.0449 · MAD: 0.0321

EBITDA yield6.1%

SEC filings · 12 months to Jun 2026Reported value50% base weight · Z-score -0.58Sector median: 0.0877 · MAD: 0.0456

Free cash flow yield-0.4%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingNegative (a loss or cash outflow), so it counts as zero whatever the share price20% base weight · Z-score -1.18Sector median: 0.0637 · MAD: 0.0539

Other data (not scored)

Book yield20.1%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.5376 · MAD: 0.3250

Growth

Is it growing?

89/100

Strong

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

12-month revenue up 4.4%

Why

Stronger than most peers on:

▲ EPS growth
▲ Revenue growth
▲ 3-yr revenue

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth89.4%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 3.40Sector median: 0.0414 · MAD: 0.2508

3-year revenue growth13.0%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score 1.37Sector median: 0.0421 · MAD: 0.0637

Revenue growth15.8%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.85Sector median: 0.0370 · MAD: 0.0650

Profitability

Does it earn well?

84/100

Strong

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Stronger than most peers on:

▲ ROA
▲ Operating margin
▲ ROIC

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin12.1%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.25Sector median: 0.0642 · MAD: 0.0453

Return on assets12.3%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 3.53Sector median: 0.0330 · MAD: 0.0257

Return on invested capital12.2%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.81Sector median: 0.0733 · MAD: 0.0602

Other data (not scored)

Gross margin50.8%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.3014 · MAD: 0.1397

Return on equity24.5%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0752 · MAD: 0.0672

Risk

Debt, liquidity, price swings

Higher

Higher relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ Beta
▼ Current ratio

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta1.46

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score -2.72Sector median: 0.6350 · MAD: 0.3020

Current ratio1.03×

SEC filings · latest balance sheetReported value33% base weight · Z-score -0.81Sector median: 1.4860 · MAD: 0.5580

Debt / equity0.24×

SEC filings · latest balance sheetReported value33% base weight · Z-score 0.62Sector median: 0.4646 · MAD: 0.3569

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Amazon.com

Is Amazon.com getting weaker?: Its latest SEC filing (Jul 31, 2026) showed no major changes. Its overall score is 58/100, down 1 since Oct 2, 2026.
How is Amazon.com valued vs its peers?: Priced higher than most peers relative to what it earns. Valuation scores 33/100 against 1,614 consumer cyclical peers. Free cash flow yield -0.4% vs a peer median of 6.4% (weaker than 100% of peers).Free cash flow yield -0.4% vs peers 6.4% (weaker than 100% of peers).
Is Amazon.com growing?: Yes, faster than most of its peers. Growth scores 89/100 against 1,614 consumer cyclical peers. Earnings per share growth 89.4% vs a peer median of 4.1% (stronger than 88% of peers).Earnings per share growth 89.4% vs peers 4.1% (stronger than 88% of peers).
How profitable is Amazon.com?: More profitable than most of its peers. Profitability scores 84/100 against 1,614 consumer cyclical peers. Return on assets 12.3% vs a peer median of 3.3% (stronger than 94% of peers).Return on assets 12.3% vs peers 3.3% (stronger than 94% of peers).
How risky is Amazon.com?: Higher risk relative to 1,614 consumer cyclical peers, judged on debt, liquidity and share-price swings. Debt / equity 0.24× vs a peer median of 0.46× (stronger than 70% of peers).Debt / equity 0.24× vs peers 0.46× (stronger than 70% of peers). Beta 1.46 vs a peer median of 0.64 (weaker than 91% of peers).Beta 1.46 vs peers 0.64 (weaker than 91% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Jul 31, 2026 · compared with the quarter ended Mar 31, 2026

No major changes

	Previous quarter	Latest quarter	Change
Revenue (12 months)	742.8B USD	775.7B USD	+4.4%
Net income (12 months)	90.8B USD	135.3B USD	+49.0%
Operating margin	11.5%	12.1%	+0.6 pts
Free cash flow (12 months)	−2.5B USD	−11.6B USD	+370.3%
Debt	122.8B USD	133.3B USD	+8.6%
Cash	101.8B USD	78.2B USD	−23.2%
Shares outstanding	10.76B	10.79B	+0.3%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Sector: Consumer Cyclical · 182 companies

Valuations in Consumer Cyclical are within their usual range since 2016.

36% of months since 2016 were valued lower than now.
15% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +0% and earnings +10% (medians): prices and earnings moved broadly together.
Median price-to-sales is −55% vs the whole market, against a usual −41%.

2016Shaded: most expensive fifth of its range2026

Shown for Consumer Cyclical: too few Internet Retail companies have a long enough history of their own.

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Operating margin	5.3%	2.4%	6.4%	10.8%	11.2%	▲ 0.4 pts
Net margin	7.1%	-0.5%	5.3%	9.3%	10.8%	▲ 1.5 pts
Return on assets (ROA)	7.9%	-0.6%	5.8%	9.5%	9.5%	▲ 0.0 pts
Return on equity (ROE)	24.1%	-1.9%	15.1%	20.7%	18.9%	▼ 1.8 pts
Free cash flow margin	-3.1%	-3.3%	5.6%	5.2%	1.1%	▼ 4.1 pts
Current ratio	1.14×	0.94×	1.05×	1.06×	1.05×	▼ 1.2%
Quick ratio	0.91×	0.72×	0.84×	0.87×	0.88×	▲ 0.2%
Debt to equity	0.37×	0.48×	0.33×	0.20×	0.17×	▼ 17%
Interest coverage	13.75×	5.17×	11.58×	28.51×	35.17×	▲ 23%

AMZN price history

Price history is added with the daily price update and will appear after the next one.

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