ADVANCED MICRO DEVICES (AMD.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AMD - US0079031078 - Common Stock
221.35 EUR
+5.4 (+2.5%)
Taking everything into account, AMD scores 5 out of 10 in our fundamental rating. AMD was compared to 69 industry peers in the Semiconductors & Semiconductor Equipment industry. AMD has an excellent financial health rating, but there are some minor concerns on its profitability. AMD shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
- AMD had positive earnings in the past year.
- AMD had a positive operating cash flow in the past year.
- In the past 5 years AMD has always been profitable.
- Each year in the past 5 years AMD had a positive operating cash flow.
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.
- AMD has a worse Return On Equity (5.44%) than 67.65% of its industry peers.
- The Return On Invested Capital of AMD (3.71%) is worse than 76.47% 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 3 year average ROIC (1.56%) for AMD is below the current ROIC(3.71%), indicating increased profibility in the last year.
| 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 has a Profit Margin (10.32%) which is in line with its industry peers.
- AMD's Profit Margin has improved in the last couple of years.
- AMD has a Operating Margin of 9.33%. This is in the lower half of the industry: AMD underperforms 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 in line with its industry peers.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AMD is destroying value.
- The number of shares outstanding for AMD has been increased compared to 1 year ago.
- The number of shares outstanding for AMD has been increased compared to 5 years ago.
- The debt/assets ratio for AMD has been reduced compared to a year ago.
2.2 Solvency
- AMD has an Altman-Z score of 16.65. This indicates that AMD is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 16.65, AMD belongs to the top of the industry, outperforming 89.71% of the companies in the same industry.
- 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.
- AMD has a Debt to FCF ratio of 0.59. This is in the better half of the industry: AMD outperforms 79.41% of its industry peers.
- A Debt/Equity ratio of 0.04 indicates that AMD is not too dependend on debt financing.
- AMD has a better Debt to Equity ratio (0.04) than 86.76% of its industry peers.
| 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.
- The Current ratio of AMD (2.31) is comparable to the rest of the 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 50.00% 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.
- Looking at the last year, AMD shows a very strong growth in Revenue. 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 Y21.25%
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.
- 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 69.61.
- Based on the Price/Earnings ratio, AMD is valued a bit more expensive than 72.06% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, AMD is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 39.17, the valuation of AMD can be described as expensive.
- Based on the Price/Forward Earnings ratio, AMD is valued a bit more expensive than the industry average as 64.71% of the companies are valued more cheaply.
- 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
- Based on the Enterprise Value to EBITDA ratio, AMD is valued expensively inside the industry as 88.24% of the companies are valued cheaper.
- AMD's Price/Free Cash Flow is on the same level as 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.
- AMD's earnings are expected to grow with 46.55% in the coming years. This may justify a more expensive valuation.
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.