ADVANCED MICRO DEVICES (AMD.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AMD - US0079031078 - Common Stock
221.35 EUR
+5.4 (+2.5%)
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 shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
- AMD had positive earnings in the past year.
- In the past year AMD had a positive cash flow from operations.
- Each year in the past 5 years AMD has been profitable.
- In the past 5 years AMD always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.30%, AMD is doing worse than 63.24% of the companies in the same industry.
- With a Return On Equity value of 5.44%, AMD is not doing good in the industry: 67.65% of the companies in the same industry are doing better.
- Looking at the Return On Invested Capital, with a value of 3.71%, AMD is doing worse than 76.47% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years 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
- Looking at the Profit Margin, with a value of 10.32%, AMD is in line with its industry, outperforming 42.65% of the companies in the same industry.
- 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 73.53% of its industry peers.
- In the last couple of years the Operating Margin of AMD has remained more or less at the same level.
- AMD has a Gross Margin (48.26%) which is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of AMD has grown nicely.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AMD is destroying value.
- AMD has more shares outstanding than it did 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
- An Altman-Z score of 16.65 indicates that AMD is not in any danger for bankruptcy at the moment.
- The Altman-Z score of AMD (16.65) is better than 89.71% 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.
- Looking at the Debt to FCF ratio, with a value of 0.59, AMD is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
- AMD has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
- With an excellent Debt to Equity ratio value of 0.04, AMD belongs to the best of the industry, outperforming 86.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 16.65 |
ROIC/WACC0.34
WACC10.81%
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 (2.31) which is in line with its industry peers.
- A Quick Ratio of 1.68 indicates that AMD should not have too much problems paying its short term obligations.
- AMD has a Quick ratio of 1.68. This is comparable to the rest of the industry: AMD outperforms 50.00% of its industry peers.
| 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%.
- The Revenue has been growing by 30.81% on average over the past years. This is a very strong growth!
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
- Based on estimates for the next years, AMD will show a very strong growth in Earnings Per Share. The EPS will grow by 40.31% on average per year.
- 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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- AMD is valuated quite expensively with a Price/Earnings ratio of 69.61.
- 72.06% of the companies in the same industry are cheaper than AMD, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of AMD to the average of the S&P500 Index (27.21), we can say AMD is valued expensively.
- Based on the Price/Forward Earnings ratio of 39.17, the valuation of AMD can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AMD indicates a slightly more expensive valuation: AMD is more expensive than 64.71% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, AMD is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.61 | ||
| Fwd PE | 39.17 |
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 88.24% of the companies listed in the same industry.
- AMD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.67 | ||
| EV/EBITDA | 69.49 |
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.
- A more expensive valuation may be justified as AMD's earnings are expected to grow with 46.55% in the coming years.
PEG (NY)3.28
PEG (5Y)1.79
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 69.61 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 21.25% in the next year.