ADVANCED MICRO DEVICES (AMD) Fundamental Analysis & Valuation
NASDAQ:AMD • US0079031078
Current stock price
334.63 USD
-13.18 (-3.79%)
At close:
334.99 USD
+0.36 (+0.11%)
After Hours:
This AMD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. AMD Profitability Analysis
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.
- 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 5.64%, AMD is in the better half of the industry, outperforming 70.43% of the companies in the same industry.
- AMD has a Return On Equity of 6.88%. This is in the better half of the industry: AMD outperforms 64.35% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.43%, AMD is in the better half of the industry, outperforming 61.74% 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 10.89%.
- The 3 year average ROIC (2.52%) for AMD is below the current ROIC(4.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 6.88% | ||
| ROIC | 4.43% |
ROA(3y)3.09%
ROA(5y)7.34%
ROE(3y)3.75%
ROE(5y)11.17%
ROIC(3y)2.52%
ROIC(5y)9.01%
1.3 Margins
- AMD has a better Profit Margin (12.51%) than 69.57% of its industry peers.
- In the last couple of years the Profit Margin of AMD has declined.
- The Operating Margin of AMD (10.66%) is better than 64.35% of its industry peers.
- AMD's Operating Margin has declined in the last couple of years.
- AMD has a Gross Margin (49.52%) 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 | 10.66% | ||
| PM (TTM) | 12.51% | ||
| GM | 49.52% |
OM growth 3Y29.39%
OM growth 5Y-5.33%
PM growth 3Y30.8%
PM growth 5Y-13.27%
GM growth 3Y3.3%
GM growth 5Y2.15%
2. AMD Health Analysis
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.
- The number of shares outstanding for AMD has been increased compared to 5 years ago.
- The debt/assets ratio for AMD is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 25.43 indicates that AMD is not in any danger for bankruptcy at the moment.
- The Altman-Z score of AMD (25.43) is better than 82.61% of its industry peers.
- The Debt to FCF ratio of AMD is 0.48, which is an excellent value as it means it would take AMD, only 0.48 years of fcf income to pay off all of its debts.
- AMD's Debt to FCF ratio of 0.48 is fine compared to the rest of the industry. AMD outperforms 78.26% 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 in the better half of the industry: AMD outperforms 61.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.48 | ||
| Altman-Z | 25.43 |
ROIC/WACC0.35
WACC12.81%
2.3 Liquidity
- AMD has a Current Ratio of 2.85. This indicates that AMD is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of AMD (2.85) is comparable to the rest of the industry.
- AMD has a Quick Ratio of 2.01. This indicates that AMD is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of AMD (2.01) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.85 | ||
| Quick Ratio | 2.01 |
3. AMD Growth Analysis
3.1 Past
- AMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.60%, which is quite impressive.
- AMD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.45% yearly.
- Looking at the last year, AMD shows a very strong growth in Revenue. The Revenue has grown by 34.34%.
- Measured over the past years, AMD shows a very strong growth in Revenue. The Revenue has been growing by 28.82% on average per year.
EPS 1Y (TTM)25.6%
EPS 3Y5.61%
EPS 5Y26.45%
EPS Q2Q%40.37%
Revenue 1Y (TTM)34.34%
Revenue growth 3Y13.64%
Revenue growth 5Y28.82%
Sales Q2Q%34.11%
3.2 Future
- The Earnings Per Share is expected to grow by 41.69% 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 31.85% yearly.
EPS Next Y61.77%
EPS Next 2Y62.77%
EPS Next 3Y50.47%
EPS Next 5Y41.69%
Revenue Next Year36.91%
Revenue Next 2Y40.02%
Revenue Next 3Y35.53%
Revenue Next 5Y31.85%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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. AMD Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 80.25, AMD can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as AMD.
- The average S&P500 Price/Earnings ratio is at 27.35. AMD is valued rather expensively when compared to this.
- The Price/Forward Earnings ratio is 49.61, which means the current valuation is very expensive for AMD.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AMD is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 22.23. AMD is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.25 | ||
| Fwd PE | 49.61 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as AMD.
- Based on the Price/Free Cash Flow ratio, AMD is valued a bit cheaper than the industry average as 61.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81 | ||
| EV/EBITDA | 82.82 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- AMD has a very decent profitability rating, which may justify a higher PE ratio.
- AMD's earnings are expected to grow with 50.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.3
PEG (5Y)3.03
EPS Next 2Y62.77%
EPS Next 3Y50.47%
5. AMD Dividend Analysis
5.1 Amount
- No dividends for AMD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
AMD Fundamentals: All Metrics, Ratios and Statistics
334.63
-13.18 (-3.79%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-03 2026-02-03/amc
Earnings (Next)05-05 2026-05-05/amc
Inst Owners72.19%
Inst Owner Change-0.4%
Ins Owners0.32%
Ins Owner Change-6.68%
Market Cap545.56B
Revenue(TTM)34.64B
Net Income(TTM)4.33B
Analysts79.66
Price Target285.48 (-14.69%)
Short Float %2.24%
Short Ratio0.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.48%
Min EPS beat(2)2.13%
Max EPS beat(2)14.83%
EPS beat(4)3
Avg EPS beat(4)3.63%
Min EPS beat(4)-3.25%
Max EPS beat(4)14.83%
EPS beat(8)6
Avg EPS beat(8)1.99%
EPS beat(12)9
Avg EPS beat(12)1.9%
EPS beat(16)12
Avg EPS beat(16)2.85%
Revenue beat(2)2
Avg Revenue beat(2)4.93%
Min Revenue beat(2)4.69%
Max Revenue beat(2)5.18%
Revenue beat(4)4
Avg Revenue beat(4)3.94%
Min Revenue beat(4)2.55%
Max Revenue beat(4)5.18%
Revenue beat(8)7
Avg Revenue beat(8)2.17%
Revenue beat(12)8
Avg Revenue beat(12)1.49%
Revenue beat(16)10
Avg Revenue beat(16)1.36%
PT rev (1m)0.82%
PT rev (3m)1.23%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)5.16%
EPS NY rev (1m)0.33%
EPS NY rev (3m)1.68%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)5.5%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)3.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.25 | ||
| Fwd PE | 49.61 | ||
| P/S | 15.75 | ||
| P/FCF | 81 | ||
| P/OCF | 70.77 | ||
| P/B | 8.66 | ||
| P/tB | 25.77 | ||
| EV/EBITDA | 82.82 |
EPS(TTM)4.17
EY1.25%
EPS(NY)6.75
Fwd EY2.02%
FCF(TTM)4.13
FCFY1.23%
OCF(TTM)4.73
OCFY1.41%
SpS21.25
BVpS38.64
TBVpS12.98
PEG (NY)1.3
PEG (5Y)3.03
Graham Number60.2126 (-82.01%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 6.88% | ||
| ROCE | 5.47% | ||
| ROIC | 4.43% | ||
| ROICexc | 5.25% | ||
| ROICexgc | 19.79% | ||
| OM | 10.66% | ||
| PM (TTM) | 12.51% | ||
| GM | 49.52% | ||
| FCFM | 19.44% |
ROA(3y)3.09%
ROA(5y)7.34%
ROE(3y)3.75%
ROE(5y)11.17%
ROIC(3y)2.52%
ROIC(5y)9.01%
ROICexc(3y)2.89%
ROICexc(5y)14.94%
ROICexgc(3y)11.82%
ROICexgc(5y)24.76%
ROCE(3y)3.12%
ROCE(5y)11.14%
ROICexgc growth 3Y12.17%
ROICexgc growth 5Y-7.74%
ROICexc growth 3Y45.68%
ROICexc growth 5Y-27.4%
OM growth 3Y29.39%
OM growth 5Y-5.33%
PM growth 3Y30.8%
PM growth 5Y-13.27%
GM growth 3Y3.3%
GM growth 5Y2.15%
F-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.48 | ||
| Debt/EBITDA | 0.35 | ||
| Cap/Depr | 32.42% | ||
| Cap/Sales | 2.81% | ||
| Interest Coverage | 40.59 | ||
| Cash Conversion | 115.09% | ||
| Profit Quality | 155.36% | ||
| Current Ratio | 2.85 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z | 25.43 |
F-Score7
WACC12.81%
ROIC/WACC0.35
Cap/Depr(3y)23%
Cap/Depr(5y)30.75%
Cap/Sales(3y)2.56%
Cap/Sales(5y)2.28%
Profit Quality(3y)144.4%
Profit Quality(5y)154.2%
High Growth Momentum
Growth
EPS 1Y (TTM)25.6%
EPS 3Y5.61%
EPS 5Y26.45%
EPS Q2Q%40.37%
EPS Next Y61.77%
EPS Next 2Y62.77%
EPS Next 3Y50.47%
EPS Next 5Y41.69%
Revenue 1Y (TTM)34.34%
Revenue growth 3Y13.64%
Revenue growth 5Y28.82%
Sales Q2Q%34.11%
Revenue Next Year36.91%
Revenue Next 2Y40.02%
Revenue Next 3Y35.53%
Revenue Next 5Y31.85%
EBIT growth 1Y81.26%
EBIT growth 3Y47.04%
EBIT growth 5Y21.96%
EBIT Next Year67.81%
EBIT Next 3Y55.6%
EBIT Next 5Y45.69%
FCF growth 1Y180.04%
FCF growth 3Y29.31%
FCF growth 5Y54.02%
OCF growth 1Y153.5%
OCF growth 3Y29.31%
OCF growth 5Y48.4%
ADVANCED MICRO DEVICES / AMD Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for ADVANCED MICRO DEVICES?
ChartMill assigns a fundamental rating of 6 / 10 to AMD.
Can you provide the valuation status for ADVANCED MICRO DEVICES?
ChartMill assigns a valuation rating of 4 / 10 to ADVANCED MICRO DEVICES (AMD). This can be considered as Fairly Valued.
What is the profitability of AMD stock?
ADVANCED MICRO DEVICES (AMD) has a profitability rating of 6 / 10.
What is the valuation of ADVANCED MICRO DEVICES based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ADVANCED MICRO DEVICES (AMD) is 80.25 and the Price/Book (PB) ratio is 8.66.