ADVANCED MICRO DEVICES (AMD.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AMD - US0079031078 - Common Stock
221.9 EUR
+5.95 (+2.76%)
Overall AMD gets a fundamental rating of 5 out of 10. We evaluated AMD against 68 industry peers in the Semiconductors & Semiconductor Equipment industry. AMD is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. AMD is valued quite expensive, but it does show an excellent growth.
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.
- AMD had positive earnings in each of the past 5 years.
- In the past 5 years AMD always reported a positive cash flow from operatings.
1.2 Ratios
- AMD's Return On Assets of 4.30% is on the low side compared to the rest of the industry. AMD is outperformed by 61.76% of its industry peers.
- With a Return On Equity value of 5.44%, AMD is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
- The Return On Invested Capital of AMD (3.71%) is worse than 75.00% of its industry peers.
- AMD had an Average Return On Invested Capital over the past 3 years of 1.56%. This is significantly below the industry average of 14.62%.
- 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 44.12% of its industry peers.
- AMD's Profit Margin has improved in the last couple of years.
- The Operating Margin of AMD (9.33%) is worse than 72.06% 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.
- AMD has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for AMD has been increased compared to 5 years ago.
- Compared to 1 year ago, AMD has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 16.21 indicates that AMD is not in any danger for bankruptcy at the moment.
- AMD has a Altman-Z score of 16.21. This is amongst the best in the industry. AMD outperforms 88.24% of its industry peers.
- AMD has a debt to FCF ratio of 0.59. This is a very positive value and a sign of high solvency as it would only need 0.59 years to pay back of all of its debts.
- AMD has a better Debt to FCF ratio (0.59) than 80.88% of its industry peers.
- A Debt/Equity ratio of 0.04 indicates that AMD is not too dependend on debt financing.
- The Debt to Equity ratio of AMD (0.04) is better than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 16.21 |
ROIC/WACC0.34
WACC10.83%
2.3 Liquidity
- A Current Ratio of 2.31 indicates that AMD has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.31, AMD is in line with its industry, outperforming 51.47% of the companies in the same industry.
- A Quick Ratio of 1.68 indicates that AMD should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.68, AMD perfoms like the industry average, outperforming 51.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 24.33% over the past year.
- AMD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.99% yearly.
- AMD shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.83%.
- Measured over the past years, AMD shows a very strong growth in Revenue. The Revenue has been growing by 30.81% on average per year.
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
- The Earnings Per Share is expected to grow by 40.31% on average over the next years. This is a very strong growth
- AMD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 34.18% yearly.
EPS Next Y21.07%
EPS Next 2Y40.24%
EPS Next 3Y45.33%
EPS Next 5Y40.31%
Revenue Next Year32.8%
Revenue Next 2Y32.42%
Revenue Next 3Y34.64%
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
- AMD is valuated quite expensively with a Price/Earnings ratio of 69.56.
- 70.59% of the companies in the same industry are cheaper than AMD, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.21. AMD is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 39.78, AMD can be considered very expensive at the moment.
- AMD's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AMD is more expensive than 67.65% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, AMD is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.56 | ||
| Fwd PE | 39.78 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMD indicates a rather expensive valuation: AMD more expensive than 86.76% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as AMD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.62 | ||
| EV/EBITDA | 67.56 |
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 45.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.3
PEG (5Y)1.78
EPS Next 2Y40.24%
EPS Next 3Y45.33%
5. Dividend
5.1 Amount
- No dividends for AMD!.
| 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 69.56 and the Price/Book (PB) ratio is 6.96.
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 21.07% in the next year.