ADVANCED MICRO DEVICES (AMD.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AMD - US0079031078 - Common Stock
212.35 EUR
+1.55 (+0.74%)
Overall AMD gets a fundamental rating of 5 out of 10. We evaluated AMD against 69 industry peers in the Semiconductors & Semiconductor Equipment industry. While AMD has a great health rating, its profitability is only average at the moment. AMD is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
- In the past year AMD was profitable.
- In the past year AMD had a positive cash flow from operations.
- Each year in the past 5 years AMD has been profitable.
- Each year in the past 5 years AMD had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of AMD (4.30%) is worse than 63.77% of its industry peers.
- AMD has a Return On Equity of 5.44%. This is in the lower half of the industry: AMD underperforms 66.67% of its industry peers.
- AMD has a worse Return On Invested Capital (3.71%) than 78.26% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AMD is significantly below the industry average of 14.31%.
- The last Return On Invested Capital (3.71%) for AMD is above the 3 year average (1.56%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.3% | ||
| ROE | 5.44% | ||
| ROIC | 3.71% |
ROA(3y)1.86%
ROA(5y)11.77%
ROE(3y)2.26%
ROE(5y)18.33%
ROIC(3y)1.56%
ROIC(5y)11.51%
1.3 Margins
- AMD's Profit Margin of 10.32% is in line compared to the rest of the industry. AMD outperforms 42.03% of its industry peers.
- AMD's Profit Margin has improved in the last couple of years.
- AMD's Operating Margin of 9.33% is on the low side compared to the rest of the industry. AMD is outperformed by 75.36% of its industry peers.
- In the last couple of years the Operating Margin of AMD has remained more or less at the same level.
- The Gross Margin of AMD (48.26%) is comparable to the rest of the industry.
- AMD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.33% | ||
| PM (TTM) | 10.32% | ||
| GM | 48.26% |
OM growth 3Y-29.04%
OM growth 5Y-1.4%
PM growth 3Y-30.84%
PM growth 5Y4.67%
GM growth 3Y0.76%
GM growth 5Y2.98%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AMD is destroying value.
- The number of shares outstanding for AMD has been increased compared to 1 year ago.
- Compared to 5 years ago, AMD has more shares outstanding
- AMD has a better debt/assets ratio than last year.
2.2 Solvency
- AMD has an Altman-Z score of 16.13. This indicates that AMD is financially healthy and has little risk of bankruptcy at the moment.
- AMD has a Altman-Z score of 16.13. This is amongst the best in the industry. AMD outperforms 88.41% of its industry peers.
- The Debt to FCF ratio of AMD is 0.59, which is an excellent value as it means it would take AMD, only 0.59 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of AMD (0.59) is better than 78.26% of its industry peers.
- A Debt/Equity ratio of 0.04 indicates that AMD is not too dependend on debt financing.
- AMD's Debt to Equity ratio of 0.04 is amongst the best of the industry. AMD outperforms 84.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 16.13 |
ROIC/WACC0.34
WACC10.89%
2.3 Liquidity
- AMD has a Current Ratio of 2.31. This indicates that AMD is financially healthy and has no problem in meeting its short term obligations.
- AMD has a Current ratio of 2.31. This is comparable to the rest of the industry: AMD outperforms 46.38% of its industry peers.
- A Quick Ratio of 1.68 indicates that AMD should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.68, AMD is in line with its industry, outperforming 47.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
- AMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.33%, which is quite impressive.
- 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.
- AMD shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.83%.
- AMD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.81% yearly.
EPS 1Y (TTM)24.33%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%30.43%
Revenue 1Y (TTM)31.83%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%35.59%
3.2 Future
- AMD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.31% yearly.
- The Revenue is expected to grow by 34.18% on average over the next years. This is a very strong growth
EPS Next Y21.25%
EPS Next 2Y41.36%
EPS Next 3Y46.55%
EPS Next 5Y40.31%
Revenue Next Year32.85%
Revenue Next 2Y32.51%
Revenue Next 3Y35.01%
Revenue Next 5Y34.18%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 67.84, AMD can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of AMD indicates a slightly more expensive valuation: AMD is more expensive than 75.36% of the companies listed in the same industry.
- AMD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.82.
- A Price/Forward Earnings ratio of 38.18 indicates a quite expensive valuation of AMD.
- AMD's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AMD is more expensive than 62.32% of the companies in the same industry.
- AMD's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.84 | ||
| Fwd PE | 38.18 |
4.2 Price Multiples
- AMD's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. AMD is more expensive than 88.41% of the companies in the same industry.
- AMD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.7 | ||
| EV/EBITDA | 67.2 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AMD does not grow enough to justify the current Price/Earnings ratio.
- AMD's earnings are expected to grow with 46.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.19
PEG (5Y)1.74
EPS Next 2Y41.36%
EPS Next 3Y46.55%
5. Dividend
5.1 Amount
- AMD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ADVANCED MICRO DEVICES / AMD.DE FAQ
Can you provide the ChartMill fundamental rating for ADVANCED MICRO DEVICES?
ChartMill assigns a fundamental rating of 5 / 10 to AMD.DE.
Can you provide the valuation status for ADVANCED MICRO DEVICES?
ChartMill assigns a valuation rating of 1 / 10 to ADVANCED MICRO DEVICES (AMD.DE). This can be considered as Overvalued.
How profitable is ADVANCED MICRO DEVICES (AMD.DE) stock?
ADVANCED MICRO DEVICES (AMD.DE) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for AMD stock?
The Price/Earnings (PE) ratio for ADVANCED MICRO DEVICES (AMD.DE) is 67.84 and the Price/Book (PB) ratio is 6.78.
Can you provide the expected EPS growth for AMD stock?
The Earnings per Share (EPS) of ADVANCED MICRO DEVICES (AMD.DE) is expected to grow by 21.25% in the next year.