Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Amazon Com Inc

AMZN · Nasdaq · Consumer

Fundamental quality

ATTRACTIVE

81

out of 100

Amazon Com Inc fits the profile of a quality compounder: it pairs high return on capital (ROE 25.8%) with wide margins (net margin 18.3%) and a business that keeps growing (13.5% a year). On fundamental quality it scores 81 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its financial strength (net debt 0.31× EBITDA). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Amazon dominates e-commerce, but its profit comes mainly from AWS, the world's largest cloud-computing provider. It rounds out the business with advertising and its Prime subscription.

What will shape its future

  • AWS as the main profit engine: its growth rate sets the pace for the whole company.
  • Improving e-commerce margins after years of heavy logistics investment.
  • Growth of its highly profitable advertising business, and regulatory pressure.

Breakdown by area

I.Growth
90

EPS growth: 38.3% · Revenue growth: 13.5%

II.Profitability
88

Net margin: 18.3% · ROE: 25.8% · ROIC: 12%

III.Financial health
64

Net debt/EBITDA: 0.31x · FCF: -2.2%

Source: SEC EDGAR · TTM through 30/06/2026

The score combines growth, profitability and financial strength. Here its growth weighs in its favor, while its financial strength drags it down the most.

Versus its sector

Percentile against the other 98 Consumer companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 90%
ROEbeats 66%
Growthbeats 73%
Cash generationbeats 2%
Less debtbeats 74%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Amazon Com Inc strengths

  • Growing earnings per share (38.3% annualized).
  • Outstanding return on equity (ROE of 25.8%): it puts shareholder capital to good use.
  • High net margin (18.3%), high even for its sector: the business is clearly profitable.
  • Revenue growing (13.5% annualized).

Amazon Com Inc risks and weaknesses

  • Negative free cash flow: the business burns cash.
  • Erratic free cash flow, with several years in the red.

Amazon Com Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
2020386,06421,33125,924-9,151
2021469,82233,364-14,72614,015
2022513,983-2,722-16,89316,261
2023574,78530,42532,217-6,579
2024637,95959,24832,878-21,139
2025716,92477,6707,695-18,414

Between 2020 and 2025, revenue went from $386,064M to $716,924M (+86%) and net income went from $21,331M to $77,670M (+264%). Meanwhile, its margins have widened (from 6% to 11%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+18.2%
  • Net income+91.6%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score7781
  • Net margin13.8%18.3%
  • ROE23.2%25.8%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

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Is Amazon Com Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Amazon Com Inc a good company to invest in?

In terms of business quality, Amazon Com Inc scores 81 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Amazon Com Inc a profitable company?

Yes. Amazon Com Inc shows a net margin of 18.3% and an ROE of 25.8%, a sign of a profitable business.

Does Amazon Com Inc have a lot of debt?

Not particularly. Its net debt is 0.31 times its EBITDA, a low level.

Is Amazon Com Inc growing?

Its revenue has grown 13.5% annualized in recent years and its earnings per share 38.3%, and without interruption since 2020.

Does Amazon Com Inc generate cash?

Over the last twelve months its free cash flow was negative.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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