Amazon.com, Inc. (AMZN)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on 2026-10-26, Amazon traded at $249.09. This is not a Graham bargain. FairStock’s Graham Number is $107.20, leaving a margin of safety of -131.34%, and trailing free cash flow is -$2.5B, or -0.1% of market cap. I want a margin between price and conservatively calculated value; here the price is far above it. Yet the operating record is impressive. Filed FY2023 revenue was $574.8B with net income of $30.4B and EPS of $2.90; FY2024 revenue was $638.0B with net income $59.2B and EPS $5.53; FY2025 revenue was $716.9B with net income $77.7B and EPS $7.17. In fiscal Q2 2026, the quarter ended 2026-06-30, Amazon reported revenue of $200.6B, net income of $62.6B and diluted EPS of $5.75. Its scale across online retail, AWS, advertising and subscriptions gives it a durable moat, but the numbers must support it. FairStock shows ROE of 30.56%, ROCE of 6.59%, D/E of 0.46 and an Altman Z-score of 4.14. The balance sheet looks sound, but ROCE is only modest and Piotroski is 5/9. At a FairStock P/E of 20.04 and EV/EBITDA of 14.77, the price is not extravagant against earnings, and PEG of 0.26 reflects the profit-growth figure. Still, negative FCF and the -131.34% Graham margin mean I would demand proof that the recent profit surge is durable. FairStock’s computed Lynch category is TURNAROUND—returned to profit after a loss within the last three years—so I treat the label as a call for scrutiny, not a permanent franchise. The company has scale, but the price already reflects much of it.

In plain English: Amazon sells products online and in physical stores, sells advertising and subscriptions, and runs cloud services. The business looks strong: sales and profit have grown, and recent profit is high. The share price looks expensive compared with the company’s accounting value and it is using more cash than it generates after investments; compared with profits, the price looks more moderate.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer