Is AMZN a high-quality business?

AlphaMadera's AlphaQuality grade scores Amazon.com, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how AMZN compares to a Buffett-style quality bar.

What is Amazon.com, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to AMZN based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes AMZN a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

AMZN - Amazon.com, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $307.77 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

B- 64.2 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 25%

C+ 61.7

5yr Avg ROIC 7.1% 45/100
Operating Margin Trend +2.01 pp/yr 100/100

Capital Efficiency

Weight: 15%

C 52.4

5yr Avg ROE 9.6% 58/100
5yr Share-Count CAGR 1.3% 42/100

Growth Quality

Weight: 25%

A 91.2

5yr Revenue CAGR 11.1% 83/100
5yr EPS CAGR 22.0% 97/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 20%

D- 30.9

5yr FCF Margin 1.1% 30/100
5yr FCF/NI Conversion 0.32x 31/100

Balance Sheet

Weight: 10%

A+ 96.9

Net Debt / EBITDA 0.18x 93/100
Interest Coverage (EBIT/Int) 43.79x 100/100
Altman Z-Score 5.04 100/100

Stability

Weight: 5%

C- 45.0

EPS Volatility (σ/μ) 1.01 0/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 0/5 100/100

12 of 14 gurus held; 6 added; 6 trimmed; 2 full exits.

Holders: 12 -2
Avg Δ position: +56.9%
New buys: 0
Full exits: 2

Mandel sold -100%
Buffett sold -100%
Soros increased +549%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.