Amazon Com Inc (AMZN) stock analysis

P/E below its 5-year median

Amazon Com's P/E of 21.6 is below its own 5-year median of 48.5.

P/E above the industry

Amazon Com's P/E of 21.6 is above the Nonstore Retailers median of 20.2.

EV/EBITDA below its 5-year median

Amazon Com's EV/EBITDA of 16.1 is below its 5-year median of 19.4.

P/B above the industry

Amazon Com's price-to-book of 4.71 is above the Nonstore Retailers median of 3.24.

Trading below fair value

The share price of $267.44 is below our fair value estimate of $370.80.

Margin of safety over 20%

The price is 27.9% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 11.7% a year over the last three fiscal years.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth accelerating

Net income grew 76.2% over the last twelve months, against a 5-year average of 29.5% a year.

Growing faster than the industry

Revenue grew 15.4% over the last twelve months; the Nonstore Retailers median is 5.9%.

Guidance issued

The latest outlook (fourth quarter 2026 Net sales, Oct 29, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 51.4% over the last twelve months, against 50.0% a year earlier.

Return on equity over 15%

Return on equity was 27.4% over the last twelve months and averaged 18.2% over five years.

Return on capital over 10%

Return on invested capital was 16.1%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Amazon Com's return on equity of 27.4% is above the Nonstore Retailers median of 9.1%.

Earnings grew over 5 years

Net income grew 29.5% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 16.9% over the last twelve months, against a 5-year average of 6.4%.

Net margin above the industry

Amazon Com's net margin of 16.9% is above the Nonstore Retailers median of -0.2%.

Low debt

Debt is 29.4% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 35.3% five years ago to 29.4%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 93.3% of total debt.

Interest well covered

Operating income covers interest expense 23.3 times.

Short-term assets don't cover short-term debts

Current assets are 0.99 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.08; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Amazon Com has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.