Runs online retail and logistics at enormous scale, with AWS and advertising supplying most of the operating profit.
Amazon (AMZN) scores 6.9 out of 10 as of , computed from its reported financial statements. That reads as solid quality. The reading rests on solvency, and efficiency is what holds it back.
Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.
Amazon’s returns on capital beat their cost in almost every measured year, by a clear margin: 4 of 5 indicators passed.
Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →
Group ratios blend a thin-margin retailer with a high-margin cloud and advertising business, so profitability measured at the group level describes neither. Efficiency is the more revealing pillar: asset turnover and cash conversion show how much capital the warehouses and data centres actually absorb. Reading the pillars separately is close to the only way to see this company clearly.
Amazon (AMZN) has a Lemma Quality Score of 6.9 out of 10 as of October 17, 2026, which reads as solid quality. A solid reading is a respectable business with clear strengths and at least one area that falls short of the best in its field. Five pillars feed it, and every one of them is computed from what the company reported rather than from its share price.
Among the 179 Consumer Discretionary companies with a published score, that ranks at the 86th percentile, in the top quarter of its peers. For reference, the middle of the group scores 5.0 and a company needs 6.1 to reach its top quarter, which leaves Amazon well above the median.
On profitability, Amazon scores 7.7, a strong reading. Its peers have a median of 5.1 across 176 Consumer Discretionary companies, which places it well above them, at the 79th percentile. Returns and margins at this level leave room to reinvest, absorb a bad year or return cash to shareholders without straining the business.
Amazon’s solvency score is 9.1 out of 10 (strong). Against a median of 5.9 among 141 Consumer Discretionary companies, that is well above the group and the 86th percentile. Strong solvency points to a balance sheet that can carry its debts comfortably, with interest well covered and little pressure from creditors.
On growth, Amazon scores 7.9, a strong reading. Its peers have a median of 4.0 across 149 Consumer Discretionary companies, which places it well above them, at the 92nd percentile. A high growth score rewards a business that is getting bigger in a way that reaches the bottom line, not just the top one.
Amazon’s efficiency score is 3.7 out of 10 (weak). Against a median of 6.2 among 170 Consumer Discretionary companies, that is well below the group and the 20th percentile. Weak efficiency means more capital is tied up to produce each unit of output, or less of reported profit is arriving as cash.
On predictability, Amazon scores 5.0, an average reading. Its peers have a median of 5.0 across 178 Consumer Discretionary companies, which places it in line with them, at the 49th percentile. Consistency near the median is typical, and it is worth checking whether the swings came from the business itself or from one-off items.
This is a lopsided profile. Solvency scores 9.1 but efficiency only 3.7, a gap of 5.4 points, so the overall hides a business that is excellent in one respect and weak in another. A solvency lead means the balance sheet is the company’s strongest asset, a cushion that buys time when trading gets harder. An efficiency shortfall means profit is not turning into cash as readily as it could.
Closing the gap on efficiency would do the most for the overall. At the median of Consumer Discretionary companies, 6.2, Amazon would score about 7.3 instead of 6.9. All five pillars could be scored, so the overall uses the full set of weights out of 100: profitability 25, solvency 20, growth 20, efficiency 15, predictability 20.
These are the Consumer Discretionary companies closest to Amazon in market value. Each has its own page scored on the same five pillars, so the comparison is like for like.
How much profit the company generates from its capital and sales.
The company’s ability to service debt and meet its obligations.
How fast revenue, earnings and cash flow are compounding.
How well assets and earnings convert into cash and output.
How stable and consistent results have been over time.
Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.
This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.
Educational only. Not investment advice.
On this reading Amazon scores 6.9 out of 10, which reads as solid quality. Its strongest pillar is solvency, its weakest is efficiency. Quality is not the same as a good investment: the score says nothing about the price you would pay.
Amazon ranks at the 86th percentile of the 179 Consumer Discretionary companies Lemma publishes a score for. The median there is 5.0 and the top quarter starts at 6.1, against Amazon’s 6.9.
Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.
This page last changed on October 17, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for AMZN are in the app.
No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.
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