📊 AMZN Key Takeaways
Is Amazon Com Inc. (AMZN) a Good Investment?
Amazon demonstrates strong fundamental growth with 12.4% revenue expansion and 31.1% net income growth, supported by robust operating margins of 11.2% and exceptional interest coverage of 124.2x. However, the extremely low gross margin of 0.8% and concerning free cash flow conversion (1.1% FCF margin despite $139.5B operating cash flow) suggest structural challenges in capital efficiency that warrant monitoring.
Amazon's fundamentals show strong core momentum: revenue grew 12.4% while operating income rose to nearly $80.0B, indicating expanding scale and better operating efficiency. The balance sheet remains healthy with low leverage, strong cash generation, and ample liquidity, but growth quality is tempered by very heavy capital spending and a meaningful boost from non-operating income in the latest year.
Why Buy Amazon Com Inc. Stock? AMZN Key Strengths
- Outstanding net income growth (31.1% YoY) significantly outpacing revenue growth, indicating operational leverage and margin expansion
- Exceptional interest coverage ratio (124.2x) and conservative debt-to-equity (0.17x) provide substantial financial flexibility
- Strong absolute operating cash flow of $139.5B demonstrates ability to generate cash at scale despite margin constraints
- Solid ROE (18.9%) and ROA (9.5%) indicate efficient capital deployment relative to equity and asset base
- Double-digit revenue growth with faster net income and EPS growth shows improving operating leverage
- Low debt-to-equity, very high interest coverage, and large cash reserves indicate strong financial resilience
- High operating cash flow supports continued investment in infrastructure, logistics, and cloud capacity
AMZN Stock Risks: Amazon Com Inc. Investment Risks
- Critically low gross margin of 0.8% suggests extreme competitive pressure and operational thinness in core business with minimal forgiveness for disruption
- Severe free cash flow conversion challenge: only $7.7B FCF from $139.5B operating cash flow reveals capital intensity problem with $131.8B capex representing 18.4% of revenue
- Weak liquidity position with current ratio of 1.05x and quick ratio of 0.88x below 1.0x indicates potential working capital stress
- Heavy reliance on capital expenditure ($131.8B annually) creates vulnerability if growth investments fail to generate expected returns
- Free cash flow is thin because capital expenditures are consuming most operating cash flow
- Latest net income appears partly supported by unusually large non-operating income, which may reduce earnings quality
- Liquidity is adequate but not especially conservative, with current and quick ratios close to 1x
Key Metrics to Watch
- Gross margin trend and sustainability - any deterioration signals serious competitive decline
- Free cash flow margin improvement - critical to validate capex efficiency and capital allocation discipline
- Operating cash flow growth rate versus capex growth - divergence would indicate declining return on capital investments
- Debt/equity ratio trajectory - monitor if leverage increases given thin margins and high capex dependency
- Free cash flow conversion after capital expenditures
- Operating margin and operating cash flow growth relative to revenue growth
Amazon Com Inc. (AMZN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.1% FCF margin may limit capital allocation flexibility.
AMZN Profit Margin, ROE & Profitability Analysis
AMZN vs Consumer Sector: How Amazon Com Inc. Compares
How Amazon Com Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Amazon Com Inc. Stock Overvalued? AMZN Valuation Analysis 2026
Based on fundamental analysis, Amazon Com Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Amazon Com Inc. Balance Sheet: AMZN Debt, Cash & Liquidity
AMZN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Amazon Com Inc.'s revenue has grown significantly by 53% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.90 reflects profitable operations.
AMZN Revenue Growth, EPS Growth & YoY Performance
AMZN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $158.9B | $15.3B | $1.43 |
| Q2 2025 | $148.0B | $13.5B | $1.26 |
| Q1 2025 | $143.3B | $10.4B | $0.98 |
| Q3 2024 | $143.1B | $9.9B | $0.94 |
| Q2 2024 | $134.4B | $6.8B | $0.65 |
| Q1 2024 | $127.4B | $3.2B | $0.31 |
| Q3 2023 | $127.1B | $2.9B | $0.28 |
| Q2 2023 | $121.2B | -$2.0B | $-0.20 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Amazon Com Inc. Dividends, Buybacks & Capital Allocation
AMZN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Amazon Com Inc. (CIK: 0001018724)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AMZN
What is the AI rating for AMZN?
Amazon Com Inc. (AMZN) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AMZN's key strengths?
Claude: Outstanding net income growth (31.1% YoY) significantly outpacing revenue growth, indicating operational leverage and margin expansion. Exceptional interest coverage ratio (124.2x) and conservative debt-to-equity (0.17x) provide substantial financial flexibility. ChatGPT: Double-digit revenue growth with faster net income and EPS growth shows improving operating leverage. Low debt-to-equity, very high interest coverage, and large cash reserves indicate strong financial resilience.
What are the risks of investing in AMZN?
Claude: Critically low gross margin of 0.8% suggests extreme competitive pressure and operational thinness in core business with minimal forgiveness for disruption. Severe free cash flow conversion challenge: only $7.7B FCF from $139.5B operating cash flow reveals capital intensity problem with $131.8B capex representing 18.4% of revenue. ChatGPT: Free cash flow is thin because capital expenditures are consuming most operating cash flow. Latest net income appears partly supported by unusually large non-operating income, which may reduce earnings quality.
What is AMZN's revenue and growth?
Amazon Com Inc. reported revenue of $716.9B.
Does AMZN pay dividends?
Amazon Com Inc. does not currently pay dividends.
Where can I find AMZN SEC filings?
Official SEC filings for Amazon Com Inc. (CIK: 0001018724) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AMZN's EPS?
Amazon Com Inc. has a diluted EPS of $7.17.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AMZN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Amazon Com Inc. has a BUY rating with 81% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is AMZN stock overvalued or undervalued?
Valuation metrics for AMZN: ROE of 18.9% (sector avg: 18%), net margin of 10.8% (sector avg: 8%). Higher ROE suggests strong returns relative to peers.
Should I buy AMZN stock in 2026?
Our dual AI analysis gives Amazon Com Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is AMZN's free cash flow?
Amazon Com Inc.'s operating cash flow is $139.5B, with capital expenditures of $131.8B. FCF margin is 1.1%.
How does AMZN compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 10.8% (avg: 8%), ROE 18.9% (avg: 18%), current ratio 1.05 (avg: 1.5).