NASDAQ:AMD is showing decent growth, but is still valued reasonably.

Take a closer look at ADVANCED MICRO DEVICES (NASDAQ:AMD), an affordable growth stock uncovered by our stock screener. NASDAQ:AMD boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Growth Assessment of NASDAQ:AMD

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:AMD, the assigned 9 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 25.28% over the past year.
• Measured over the past years, AMD shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.99% on average per year.
• The Revenue has grown by 13.69% in the past year. This is quite good.
• AMD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.81% yearly.
• The Earnings Per Share is expected to grow by 37.03% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 21.87% on average over the next years. This is a very strong growth

Evaluating Valuation: NASDAQ:AMD

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:AMD, the assigned 6 reflects its valuation:

• Compared to the rest of the industry, the Price/Earnings ratio of AMD indicates a somewhat cheap valuation: AMD is cheaper than 67.59% of the companies listed in the same industry.
• Based on the Price/Forward Earnings ratio, AMD is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
• The average S&P500 Price/Forward Earnings ratio is at 96.21. AMD is valued rather cheaply when compared to this.
• Based on the Price/Free Cash Flow ratio, AMD is valued a bit cheaper than 61.11% of the companies in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• AMD has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as AMD's earnings are expected to grow with 40.44% in the coming years.

ChartMill's Evaluation of Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:AMD has achieved a 6 out of 10:

• AMD has an Altman-Z score of 9.92. This indicates that AMD is financially healthy and has little risk of bankruptcy at the moment.
• AMD has a Altman-Z score of 9.92. This is in the better half of the industry: AMD outperforms 78.70% of its industry peers.
• The Debt to FCF ratio of AMD is 0.72, which is an excellent value as it means it would take AMD, only 0.72 years of fcf income to pay off all of its debts.
• AMD has a better Debt to FCF ratio (0.72) than 81.48% of its industry peers.
• A Debt/Equity ratio of 0.03 indicates that AMD is not too dependend on debt financing.
• AMD has a Current Ratio of 2.62. This indicates that AMD is financially healthy and has no problem in meeting its short term obligations.

What does the Profitability looks like for NASDAQ:AMD

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:AMD, the assigned 6 is noteworthy for profitability:

• The last Return On Invested Capital (2.66%) for AMD is above the 3 year average (1.56%), which is a sign of increasing profitability.
• AMD's Profit Margin has improved in the last couple of years.
• With a decent Operating Margin value of 7.90%, AMD is doing good in the industry, outperforming 61.11% of the companies in the same industry.
• AMD's Gross Margin of 49.35% is fine compared to the rest of the industry. AMD outperforms 63.89% of its industry peers.
• In the last couple of years the Gross Margin of AMD has grown nicely.

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Our latest full fundamental report of AMD contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.