NASDAQ · Consumer Cyclical

Amazon.com, Inc.

AMZN · Internet Retail

$271.18

▲ 2.76 (1.03%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Amazon.com, Inc. at $271.18.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability B

Gross Profit Margin 50.3%

Operating Margin 11.2%

Net Income Margin 10.8%

Fin. Health C

Years to Pay Off Debt 2.0 yrs

Working Capital vs Long-Term Debt -$54.6B

Working Capital $11.1B

Valuation F

Margin of Safety 0.0%

Price-to-Book 7.09x

Cash Flow C

Free Cash Flow $7.7B

CapEx % of Net Income 169.7%

Owner Earnings $275.2B

2/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $2,916.3B

Enterprise Value $2,978.2B

P/E (TTM) 32.40

Dividend Yield N/A

Exchange NASDAQ

Key Margins

Gross Profit 50.3%

Operating Margin 11.2%

Net Margin 10.8%

Company Info

Sector Consumer Cyclical

Industry Internet Retail

Employees 1575000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Amazon.com, Inc. at $271.18.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

At $271.18, the stock trades at a 245% premium to its Graham Number of $78.53. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Amazon.com, Inc.

Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, fire tablets, fire TVs, echo, ring, blink, and eero; and develops and produces media content. In addition, the company offers programs that enable sellers to sell their products in its stores; and programs that allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content. Further, it provides compute, storage, Artificial intelligence, database, analytics, machine learning, and other services, as well as advertising services through programs, such as sponsored ads, display, and video advertising. Additionally, the company offers Amazon Prime, a membership program. The company's products offered through its stores include merchandise and content purchased for resale and products offered by third-party sellers. It serves consumers, sellers, developers, enterprises, content creators, advertisers, and employees. The company was incorporated in 1994 and is headquartered in Seattle, Washington.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022
Gross Profit %	50.3% ▲	48.9%	47.0%	43.8%
Operating Margin %	11.2% ▲	10.8%	6.4%	2.4%
Net Income %	10.8% ▲	9.3%	5.3%	-0.5%
Diluted EPS	7.17 ▲	5.53	2.90	-0.27

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$818.0B	$624.9B	$527.9B	$462.7B	N/A
Total Debt	$153.0B ↑	$130.9B	$135.6B	$140.1B	N/A
Working Capital	$11.1B ▼	$11.4B	$7.4B	-$8.6B	N/A
Years to Pay Debt	1.97	2.21	4.46	-51.48	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$7.7B ▼	$32.9B	$32.2B	-$16.9B	N/A
Owner Earnings	$275.2B	$195.0B	$131.8B	$102.8B	N/A
CapEx % of Net Income	169.7%	140.1%	173.3%	N/A	N/A

Income Statement

	2025	2024	2023	2022
Tax Effect Of Unusual Items	3,004,931	-247,916	199,057	-3,415,860
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	150,021,000	125,651,000	88,352,000	54,618,000
Total Unusual Items	15,320,000	-1,836,000	1,050,000	-16,266,000
Total Unusual Items Excluding Goodwill	15,320,000	-1,836,000	1,050,000	-16,266,000
Net Income From Continuing Operation Net Minority Interest	77,670,000	59,248,000	30,425,000	-2,722,000
Reconciled Depreciation	65,756,000	52,795,000	48,663,000	41,921,000
Reconciled Cost Of Revenue	356,414,000	326,288,000	304,739,000	288,831,000
EBITDA	165,341,000	123,815,000	89,402,000	38,352,000
EBIT	99,585,000	71,020,000	40,739,000	-3,569,000
Net Interest Income	2,107,000	2,271,000	-233,000	-1,378,000
Interest Expense	2,274,000	2,406,000	3,182,000	2,367,000
Interest Income	4,381,000	4,677,000	2,949,000	989,000
Normalized Income	65,354,931	60,836,084	29,574,057	10,128,140
Net Income From Continuing And Discontinued Operation	77,670,000	59,248,000	30,425,000	-2,722,000
Total Expenses	636,949,000	569,366,000	537,933,000	501,735,000
Total Operating Income As Reported	79,975,000	68,593,000	36,852,000	12,248,000
Diluted Average Shares	10,827,000	10,721,000	10,492,000	10,189,000
Basic Average Shares	10,656,000	10,473,000	10,304,000	10,189,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	77,670,000	59,248,000	30,425,000	-2,722,000
Net Income Common Stockholders	77,670,000	59,248,000	30,425,000	-2,722,000
Net Income	77,670,000	59,248,000	30,425,000	-2,722,000
Net Income Including Noncontrolling Interests	77,670,000	59,248,000	30,425,000	-2,722,000
Net Income Continuous Operations	77,670,000	59,248,000	30,425,000	-2,722,000
Earnings From Equity Interest Net Of Tax	-554,000	-101,000	-12,000	-3,000
Pretax Income	97,311,000	68,614,000	37,557,000	-5,936,000
Other Income Expense	15,229,000	-2,250,000	938,000	-16,806,000
Other Non Operating Income Expenses	-91,000	-414,000	-112,000	-540,000
Gain On Sale Of Security	15,320,000	-1,836,000	1,050,000	-16,266,000
Net Non Operating Interest Income Expense	2,107,000	2,271,000	-233,000	-1,378,000
Interest Expense Non Operating	2,274,000	2,406,000	3,182,000	2,367,000
Interest Income Non Operating	4,381,000	4,677,000	2,949,000	989,000
Operating Income	79,975,000	68,593,000	36,852,000	12,248,000
Operating Expense	280,535,000	243,078,000	233,194,000	212,904,000
Other Operating Expenses	222,234,000	187,812,000	177,008,000	158,775,000
Selling General And Administration	58,301,000	55,266,000	56,186,000	54,129,000
Selling And Marketing Expense	47,129,000	43,907,000	44,370,000	42,238,000
General And Administrative Expense	11,172,000	11,359,000	11,816,000	11,891,000
Other Gand A	11,172,000	11,359,000	11,816,000	11,891,000
Gross Profit	360,510,000	311,671,000	270,046,000	225,152,000
Cost Of Revenue	356,414,000	326,288,000	304,739,000	288,831,000
Total Revenue	716,924,000	637,959,000	574,785,000	513,983,000
Operating Revenue	716,924,000	637,959,000	574,785,000	513,983,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	515,000	515,000	515,000	515,000
Ordinary Shares Number	10,731,000	10,593,000	10,383,000	10,242,000
Share Issued	11,246,000	11,108,000	10,898,000	10,757,000
Net Debt				13,262,000	12,524,000
Total Debt	152,987,000	130,900,000	135,611,000	140,118,000
Tangible Book Value	378,595,000	254,294,000	171,399,000	119,658,000
Invested Capital	476,713,000	338,593,000	260,189,000	213,193,000
Working Capital	11,078,000	11,436,000	7,434,000	-8,602,000
Net Tangible Assets	378,595,000	254,294,000	171,399,000	119,658,000
Capital Lease Obligations	87,339,000	78,277,000	77,297,000	72,968,000
Common Stock Equity	411,065,000	285,970,000	201,875,000	146,043,000
Total Capitalization	476,713,000	338,593,000	260,189,000	213,193,000
Total Equity Gross Minority Interest	411,065,000	285,970,000	201,875,000	146,043,000
Stockholders Equity	411,065,000	285,970,000	201,875,000	146,043,000
Gains Losses Not Affecting Retained Earnings	28,230,000	-34,000	-3,040,000	-4,487,000
Other Equity Adjustments	28,230,000	-34,000	-3,040,000	-4,487,000
Treasury Stock	7,837,000	7,837,000	7,837,000	7,837,000
Retained Earnings	250,536,000	172,866,000	113,618,000	83,193,000
Additional Paid In Capital	140,024,000	120,864,000	99,025,000	75,066,000
Capital Stock	112,000	111,000	109,000	108,000
Common Stock	112,000	111,000	109,000	108,000
Total Liabilities Net Minority Interest	406,977,000	338,924,000	325,979,000	316,632,000
Total Non Current Liabilities Net Minority Interest	188,972,000	159,493,000	161,062,000	161,239,000
Other Non Current Liabilities	35,985,000	28,593,000	25,451,000	21,121,000
Long Term Debt And Capital Lease Obligation	152,987,000	130,900,000	135,611,000	140,118,000
Long Term Capital Lease Obligation	87,339,000	78,277,000	77,297,000	72,968,000
Long Term Debt	65,648,000	52,623,000	58,314,000	67,150,000
Current Liabilities	218,005,000	179,431,000	164,917,000	155,393,000
Current Deferred Liabilities	20,576,000	18,103,000	15,227,000	13,227,000
Current Deferred Revenue	20,576,000	18,103,000	15,227,000	13,227,000
Payables And Accrued Expenses	197,429,000	161,328,000	149,690,000	142,166,000
Current Accrued Expenses	75,520,000	66,965,000	64,709,000	62,566,000
Payables	121,909,000	94,363,000	84,981,000	79,600,000
Accounts Payable	121,909,000	94,363,000	84,981,000	79,600,000
Total Assets	818,042,000	624,894,000	527,854,000	462,675,000
Total Non Current Assets	588,959,000	434,027,000	355,503,000	315,884,000
Other Non Current Assets	113,410,000	73,545,000	48,337,000	36,661,000
Goodwill And Other Intangible Assets	32,470,000	31,676,000	30,476,000	26,385,000
Other Intangible Assets	9,197,000	8,602,000	7,687,000	6,097,000
Goodwill	23,273,000	23,074,000	22,789,000	20,288,000
Net PPE	443,079,000	328,806,000	276,690,000	252,838,000
Accumulated Depreciation	-177,073,000	-141,390,000	-120,111,000	-97,015,000
Gross PPE	620,152,000	470,196,000	396,801,000	349,853,000
Construction In Progress	71,745,000	46,636,000	28,840,000	30,020,000
Other Properties	393,286,000	300,521,000	262,668,000	228,183,000
Machinery Furniture Equipment					128,683,000
Land And Improvements			105,293,000	91,650,000	81,104,000
Properties	155,121,000	123,039,000	105,293,000	91,650,000
Current Assets	229,083,000	190,867,000	172,351,000	146,791,000
Inventory	38,325,000	34,214,000	33,318,000	34,405,000
Inventories Adjustments Allowances	-3,300,000	-3,000,000	-3,000,000	-2,800,000
Other Inventories	41,625,000	37,214,000	36,318,000	37,205,000
Finished Goods					32,640,000
Receivables	67,729,000	55,451,000	52,253,000	42,360,000
Accounts Receivable	67,729,000	55,451,000	52,253,000	42,360,000
Allowance For Doubtful Accounts Receivable	-2,400,000	-2,000,000	-1,700,000	-1,400,000
Gross Accounts Receivable	70,129,000	57,451,000	53,953,000	43,760,000
Cash Cash Equivalents And Short Term Investments	123,029,000	101,202,000	86,780,000	70,026,000
Other Short Term Investments	36,219,000	22,423,000	13,393,000	16,138,000
Cash And Cash Equivalents	86,810,000	78,779,000	73,387,000	53,888,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	7,695,000	32,878,000	32,217,000	-16,893,000
Repurchase Of Capital Stock		0	0	-6,000,000	0
Repayment Of Debt	-15,332,000	-16,954,000	-34,008,000	-47,001,000
Issuance Of Debt	24,993,000	5,142,000	18,129,000	62,719,000
Capital Expenditure	-131,819,000	-82,999,000	-52,729,000	-63,645,000
Interest Paid Supplemental Data	1,949,000	2,364,000	3,112,000	2,142,000
Income Tax Paid Supplemental Data	8,295,000	12,308,000	11,179,000	6,035,000
End Cash Position	90,106,000	82,312,000	73,890,000	54,253,000
Beginning Cash Position	82,312,000	73,890,000	54,253,000	36,477,000
Effect Of Exchange Rate Changes	1,164,000	-1,301,000	403,000	-1,093,000
Changes In Cash	6,630,000	9,723,000	19,234,000	18,869,000
Financing Cash Flow	9,661,000	-11,812,000	-15,879,000	9,718,000
Cash Flow From Continuing Financing Activities	9,661,000	-11,812,000	-15,879,000	9,718,000
Net Other Financing Charges			-271,000	-248,000	-162,000
Net Common Stock Issuance		0	0	-6,000,000	0
Common Stock Payments		0	0	-6,000,000	0
Net Issuance Payments Of Debt	9,661,000	-11,812,000	-15,879,000	15,718,000
Net Short Term Debt Issuance	894,000	82,000	-7,548,000	3,999,000
Short Term Debt Payments	-8,426,000	-5,060,000	-25,677,000	-37,554,000
Short Term Debt Issuance	9,320,000	5,142,000	18,129,000	41,553,000
Net Long Term Debt Issuance	8,767,000	-11,894,000	-8,331,000	11,719,000
Long Term Debt Payments	-6,906,000	-11,894,000	-8,331,000	-9,447,000
Long Term Debt Issuance	15,673,000	0	0	21,166,000
Investing Cash Flow	-142,545,000	-94,342,000	-49,833,000	-37,601,000
Cash Flow From Continuing Investing Activities	-142,545,000	-94,342,000	-49,833,000	-37,601,000
Net Investment Purchase And Sale	-10,384,000	-9,602,000	4,139,000	29,036,000
Sale Of Investment	44,386,000	16,403,000	5,627,000	31,601,000
Purchase Of Investment	-54,770,000	-26,005,000	-1,488,000	-2,565,000
Net Business Purchase And Sale	-3,841,000	-7,082,000	-5,839,000	-8,316,000
Purchase Of Business	-3,841,000	-7,082,000	-5,839,000	-8,316,000
Net PPE Purchase And Sale	-128,320,000	-77,658,000	-48,133,000	-58,321,000
Sale Of PPE	3,499,000	5,341,000	4,596,000	5,324,000
Purchase Of PPE	-131,819,000	-82,999,000	-52,729,000	-63,645,000
Operating Cash Flow	139,514,000	115,877,000	84,946,000	46,752,000
Cash Flow From Continuing Operating Activities	139,514,000	115,877,000	84,946,000	46,752,000
Change In Working Capital	-19,969,000	-15,541,000	-11,541,000	-20,886,000
Change In Other Working Capital	-214,000	4,007,000	4,578,000	2,216,000
Change In Other Current Assets	-15,632,000	-14,483,000	-12,265,000	-13,275,000
Change In Payables And Accrued Expense	6,212,000	68,000	3,045,000	1,387,000
Change In Accrued Expense	-5,019,000	-2,904,000	-2,428,000	-1,558,000
Change In Payable	11,231,000	2,972,000	5,473,000	2,945,000
Change In Account Payable	11,231,000	2,972,000	5,473,000	2,945,000
Change In Inventory	-3,002,000	-1,884,000	1,449,000	-2,592,000
Change In Receivables	-7,333,000	-3,249,000	-8,348,000	-8,622,000
Changes In Account Receivables	-7,333,000	-3,249,000	-8,348,000	-8,622,000
Other Non Cash Items	-14,880,000	2,012,000	-748,000	16,966,000
Stock Based Compensation	19,467,000	22,011,000	24,023,000	19,621,000
Deferred Tax	11,470,000	-4,648,000	-5,876,000	-8,148,000
Deferred Income Tax	11,470,000	-4,648,000	-5,876,000	-8,148,000
Depreciation Amortization Depletion	65,756,000	52,795,000	48,663,000	41,921,000
Depreciation And Amortization	65,756,000	52,795,000	48,663,000	41,921,000
Net Income From Continuing Operations	77,670,000	59,248,000	30,425,000	-2,722,000

These metrics estimate what Amazon.com, Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$78.53

Margin of Safety

Market Cap ÷ Company Value

1.16

P/B Ratio

7.09

Warren's Owner Earnings

$275.2B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

2/7 — Speculative Investor

✅ Adequate Size

$716.9B

vs > $1.5B revenue

❌ Strong Financial Condition

1.05x

vs Current Ratio > 2.0x

❌ Earnings Stability

1 loss years (4 yrs data)

vs No negative EPS years

❌ Dividend Record

No dividend

vs Uninterrupted dividends

✅ Earnings Growth

+147.2% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

32.4x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

7.09x P/B (P/E×P/B: 229.9)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-16.54

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$82.63

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	169.7%	140.1%	173.3%	N/A	N/A
Repurchase of Capital Stock	N/A	$0M	$0M	-$6.0B	$0M
Free Cash Flow	$7.7B ▼	$32.9B ▲	$32.2B ▲	-$16.9B •	N/A •
Warren's Owner Earnings	$275.2B	$195.0B	$131.8B	$102.8B	N/A

Peers & Industry Comparison

Internet Retail — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
AMZN	$271.18	$2,916.3B	32.40	50.3%	10.8%	$716.9B
BABA Alibaba Group Holding Limited	$133.77	$330.1B	23.6	40.8%	8.9%	$1,016.7B
JD JD.com, Inc.	$30.05	$41.0B	15.9	9.3%	1.5%	$1,309.1B
EBAY eBay Inc.	$109.36	$48.6B	25.3	71.8%	17.6%	$11.6B
ETSY Etsy, Inc.	$64.42	$6.1B	24.7	71.6%	9.8%	$2.9B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

8.94%

Moderate — some alignment with shareholders

Return on Equity (ROE)

18.9%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

9.5%

Strong — management uses assets efficiently

Debt Trend YoY

+16.9% YoY

Debt is growing — management is leveraging up

Leadership Team

Jeffrey Bezos

Founder & Executive Chairman

Age 61

Pay: $1,681,840

0.002% of net income

Andrew Jassy

President, CEO & Director

Age 57

Pay: $2,069,861

0.003% of net income

Brian Olsavsky

Senior VP & CFO

Age 61

Pay: $372,000

0.000% of net income

Douglas Herrington

Chief Executive Officer of Worldwide Amazon Stores

Age 58

Pay: $425,365

0.001% of net income

Matthew Garman

Chief Executive Officer of Amazon Web Series

Age 48

Pay: $617,281

0.001% of net income

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	7.86%	845,400,528
Blackrock Inc.	6.83%	734,375,864
State Street Corporation	3.61%	388,653,121
FMR, LLC	3.08%	331,470,804
Geode Capital Management, LLC	2.09%	225,120,994
Morgan Stanley	1.50%	161,580,340
JPMORGAN CHASE & CO	1.49%	160,046,290
NORGES BANK	1.32%	142,399,855

Risk Analysis

Beta (Market Risk)

1.47

Moderate volatility — moves slightly more than market

Short Interest

0.9% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.53x

Conservative balance sheet — low financial risk

Current Ratio

1.18x

Adequate liquidity

52-Week Price Range

Low: $183.85 Current: $271.18 High: $276.10

Currently at 95% of 52-week range

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