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 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 expensively, but it does show have an excellent growth rating.
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.
- AMD had positive earnings in each of the past 5 years.
- AMD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AMD has a Return On Assets of 4.30%. This is in the lower half of the industry: AMD underperforms 61.76% of its industry peers.
- AMD has a Return On Equity of 5.44%. This is in the lower half of the industry: AMD underperforms 64.71% of its industry peers.
- AMD's Return On Invested Capital of 3.71% is on the low side compared to the rest of the industry. AMD is outperformed by 75.00% 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 14.62%.
- 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
- Looking at the Profit Margin, with a value of 10.32%, AMD is in line with its industry, outperforming 44.12% of the companies in the same industry.
- AMD's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 9.33%, AMD is doing worse than 72.06% of the companies in the same industry.
- AMD's Operating Margin has been stable in the last couple of years.
- The Gross Margin of AMD (48.26%) 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
- 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.
- AMD has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for AMD has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 16.21 indicates that AMD is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 16.21, AMD belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
- 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.
- AMD has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
- AMD has a Debt to Equity ratio of 0.04. This is amongst the best in the industry. AMD outperforms 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
WACC10.81%
2.3 Liquidity
- A Current Ratio of 2.31 indicates that AMD has no problem at all paying its short term obligations.
- AMD has a Current ratio of 2.31. This is comparable to the rest of the industry: AMD outperforms 51.47% of its industry peers.
- AMD has a Quick Ratio of 1.68. This is a normal value and indicates that AMD is financially healthy and should not expect problems in meeting its short term obligations.
- AMD has a Quick ratio (1.68) which is in line with 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.
- 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
- AMD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.31% yearly.
- 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
- 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
- The Price/Earnings ratio is 69.39, which means the current valuation is very expensive for AMD.
- AMD's Price/Earnings ratio is a bit more expensive when compared to the industry. AMD is more expensive than 70.59% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. AMD is valued rather expensively when compared to this.
- The Price/Forward Earnings ratio is 39.68, which means the current valuation is very expensive for AMD.
- Based on the Price/Forward Earnings ratio, AMD is valued a bit more expensive than the industry average as 67.65% of the companies are valued more cheaply.
- AMD's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.39 | ||
| Fwd PE | 39.68 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AMD is valued more expensive than 86.76% of the companies 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 | 77.43 | ||
| 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.
- A more expensive valuation may be justified as AMD's earnings are expected to grow with 45.33% in the coming years.
PEG (NY)3.29
PEG (5Y)1.78
EPS Next 2Y40.24%
EPS Next 3Y45.33%
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 69.39 and the Price/Book (PB) ratio is 6.94.
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.