AMZN
Amazon.com, Inc.
Consumer Cyclical · Internet Retail · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 63.3/100 reflects strong contributions from financial health (perfect score), growth, and momentum, partially offset by a zero on dividends and no score contribution from theme assignments.
- Double-digit revenue growth combined with significantly faster earnings and EPS growth in FY2025 supported a high growth sub-score, anchoring the overall rating.
- The very low risk rating is supported by an extremely conservative debt-to-equity ratio of 0.17 and a large, diversified asset base of $818 billion.
Why Not Higher
- The dividend factor contributes zero to the score because Amazon is a confirmed non-payer with no dividend history, which structurally caps the composite total.
- Profitability metrics, while double-digit, did not reach the thresholds required for a top-tier profitability score, and the theme assignments added no incremental score contribution under the current model methodology.
Data Confidence
8 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $637,959,000,000 to FY2025's $716,924,000,000, a gain of +12.4%. Net income expanded from FY2024's $59,248,000,000 to FY2025's $77,670,000,000 (+31.1%), while diluted EPS rose from FY2024's $5.53 to FY2025's $7.17 (+29.7%).
The model rewarded the combination of double-digit top-line expansion and significantly faster bottom-line growth, with earnings and EPS both outpacing revenue growth by a wide margin, indicating improving operating leverage.
In FY2025, Amazon posted a net margin of 10.8%, an operating margin of 11.2%, and a return on assets of 9.5%.
The model recognized solid but not exceptional profitability metrics; double-digit margins reflect meaningful earnings power, though the score suggests the model's threshold for a higher rating may require wider margins or stronger asset returns than those recorded in FY2025.
In FY2025, Amazon carried a debt-to-equity ratio of 0.17 against total assets of $818,042,000,000.
A debt-to-equity ratio of 0.17 in FY2025 signals a very conservatively leveraged balance sheet relative to the company's massive asset base, which the model rewarded with a perfect score.
Quarterly revenue rose from $167,702,000,000 in 2025Q2 to $180,169,000,000 in 2025Q3 and peaked at $213,386,000,000 in 2025Q4 before settling to $181,519,000,000 in 2026Q1. Net income accelerated from $18,164,000,000 in 2025Q2 to $30,255,000,000 in 2026Q1, while operating income moved from $19,171,000,000 in 2025Q2 through $17,422,000,000 in 2025Q3, $24,977,000,000 in 2025Q4, and $23,852,000,000 in 2026Q1.
The model rewarded a clear upward trend in net income across the four quarters, with 2026Q1 representing the highest quarterly net income in the series, even as revenue and operating income showed some quarter-to-quarter variability consistent with seasonal patterns.
Amazon does not currently pay a dividend and has no mapped dividend history; this is a genuine characteristic of the company, not a data limitation.
Because the model rewards dividend income and payout history, a confirmed non-payer receives a score of zero on this factor, reflecting the absence of any dividend component rather than any judgment about overall company quality.
Amazon is assigned to the macro themes of AI Infrastructure and Data Centers & Cloud Infrastructure.
Although Amazon carries theme assignments in two high-profile macro categories, the sub-score of 0.0 indicates that this assignment did not translate into score contribution under the model's current methodology.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Amazon delivered strong FY2025 results, with revenue rising 12.4% to $716.9 billion and net income surging 31.1% to $77.7 billion, demonstrating meaningful operating leverage as earnings growth far outpaced top-line expansion. The company maintains a very conservatively leveraged balance sheet with a debt-to-equity ratio of just 0.17 against $818 billion in total assets, earning a perfect financial health score. Quarterly momentum is also compelling, with net income reaching its highest point in the trailing four quarters at $30.3 billion in 2026Q1. The absence of a dividend and the model's current treatment of theme assignments limit the composite score, but the underlying fundamental picture is robust.
Plain English
Amazon is growing fast and becoming more profitable even faster — it made 31% more in net income last year on only 12% more in sales, and it carries very little debt relative to its enormous asset base, making it a financially solid company with strong recent earnings momentum.
Bull Case vs. Bear Case
Bull Case
- Earnings growth significantly outpaced revenue growth in FY2025, with net income up 31.1% and diluted EPS up 29.7% versus 12.4% revenue growth, signaling improving operating leverage.
- Amazon's balance sheet is exceptionally conservative, with a debt-to-equity ratio of only 0.17 against $818 billion in total assets, providing substantial financial flexibility.
- Quarterly net income reached its highest level in the trailing four-quarter series at $30.3 billion in 2026Q1, reflecting a clear upward earnings trend even amid seasonal revenue variability.
Bear Case
- Amazon pays no dividend and has no dividend history, meaning income-focused investors receive zero yield, and the model assigns a zero score on this factor.
- Profitability metrics, while solid, are not exceptional — a 10.8% net margin, 11.2% operating margin, and 9.5% return on assets suggest the company has not yet reached the wider margins that would warrant a higher profitability score.
- The theme assignment to AI Infrastructure and Data Centers & Cloud Infrastructure did not translate into any score contribution under the model's current methodology, limiting the composite total.
What Could Change the Picture
Bullish Triggers
- If operating and net margins expand materially beyond FY2025 levels, the profitability score could rise significantly and push the composite score higher.
- Sustained acceleration in quarterly net income beyond the $30.3 billion recorded in 2026Q1 would reinforce the momentum case and could improve the momentum score further.
Bearish Triggers
- A reversal in the net income trend — particularly if quarterly net income falls back toward 2025Q2 levels of $18.2 billion — would undermine the momentum thesis.
- Any meaningful increase in leverage from the current debt-to-equity ratio of 0.17 could erode the perfect financial health score that anchors the composite rating.
Risk Profile
Very Low RiskAmazon's risk profile is rated Very Low, anchored by a debt-to-equity ratio of just 0.17 against $818 billion in total assets, indicating minimal financial leverage. Quarterly momentum further supports this assessment, with net income rising consistently to a four-quarter high of $30.3 billion in 2026Q1, suggesting the business is generating increasing cash earnings to service any obligations.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.