ADVANCED MICRO DEVICES (AMD) Stock Fundamental Analysis
USA - NASDAQ:AMD - US0079031078 - Common Stock
240.79 USD
+7.71 (+3.31%)
Taking everything into account, AMD scores 6 out of 10 in our fundamental rating. AMD was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. While AMD has a great profitability rating, there are some minor concerns on its financial health. AMD is valued quite expensive, but it does show an excellent growth. This makes AMD very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year AMD was profitable.
AMD had a positive operating cash flow in the past year.
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
AMD has a Return On Assets of 3.79%. This is in the better half of the industry: AMD outperforms 63.39% of its industry peers.
The Return On Equity of AMD (4.75%) is better than 60.71% of its industry peers.
AMD has a Return On Invested Capital of 3.02%. This is comparable to the rest of the industry: AMD outperforms 56.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMD is significantly below the industry average of 10.98%.
The 3 year average ROIC (1.56%) for AMD is below the current ROIC(3.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 4.75% | ||
| ROIC | 3.02% |
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 9.57% is fine compared to the rest of the industry. AMD outperforms 68.75% of its industry peers.
AMD's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 8.20%, AMD is doing good in the industry, outperforming 63.39% of the companies in the same industry.
AMD's Operating Margin has been stable in the last couple of years.
AMD has a Gross Margin of 47.62%. This is comparable to the rest of the industry: AMD outperforms 57.14% of its industry peers.
In the last couple of years the Gross Margin of AMD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.2% | ||
| PM (TTM) | 9.57% | ||
| GM | 47.62% |
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.
Compared to 1 year ago, AMD has more shares outstanding
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
AMD has an Altman-Z score of 15.79. This indicates that AMD is financially healthy and has little risk of bankruptcy at the moment.
AMD has a Altman-Z score of 15.79. This is amongst the best in the industry. AMD outperforms 82.14% of its industry peers.
AMD has a debt to FCF ratio of 0.80. This is a very positive value and a sign of high solvency as it would only need 0.80 years to pay back of all of its debts.
AMD has a better Debt to FCF ratio (0.80) than 77.68% of its industry peers.
AMD has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
AMD has a Debt to Equity ratio of 0.05. This is comparable to the rest of the industry: AMD outperforms 59.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 15.79 |
ROIC/WACC0.26
WACC11.56%
2.3 Liquidity
AMD has a Current Ratio of 2.49. This indicates that AMD is financially healthy and has no problem in meeting its short term obligations.
AMD has a Current ratio of 2.49. This is comparable to the rest of the industry: AMD outperforms 41.07% of its industry peers.
A Quick Ratio of 1.81 indicates that AMD should not have too much problems paying its short term obligations.
AMD's Quick ratio of 1.81 is in line compared to the rest of the industry. AMD outperforms 41.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
AMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.10%, which is quite impressive.
The Earnings Per Share has been growing by 38.99% on average over the past years. This is a very strong growth
The Revenue has grown by 27.17% in the past year. This is a very strong growth!
AMD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.81% yearly.
EPS 1Y (TTM)24.1%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%-30.43%
Revenue 1Y (TTM)27.17%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%31.71%
3.2 Future
AMD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.28% yearly.
Based on estimates for the next years, AMD will show a quite strong growth in Revenue. The Revenue will grow by 18.71% on average per year.
EPS Next Y18.72%
EPS Next 2Y34.31%
EPS Next 3Y31.89%
EPS Next 5Y26.28%
Revenue Next Year28.8%
Revenue Next 2Y25.09%
Revenue Next 3Y22.87%
Revenue Next 5Y18.71%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 69.79, AMD can be considered very expensive at the moment.
AMD's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.42, AMD is valued quite expensively.
A Price/Forward Earnings ratio of 40.21 indicates a quite expensive valuation of AMD.
AMD's Price/Forward Earnings is on the same level as the industry average.
AMD is valuated expensively when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.79 | ||
| Fwd PE | 40.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMD is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as AMD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 96.65 | ||
| EV/EBITDA | 68.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of AMD may justify a higher PE ratio.
A more expensive valuation may be justified as AMD's earnings are expected to grow with 31.89% in the coming years.
PEG (NY)3.73
PEG (5Y)1.79
EPS Next 2Y34.31%
EPS Next 3Y31.89%
5. Dividend
5.1 Amount
No dividends for AMD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:AMD (10/20/2025, 2:48:09 PM)
240.79
+7.71 (+3.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.37%
Inst Owner Change-1.2%
Ins Owners0.34%
Ins Owner Change1.13%
Market Cap390.76B
Analysts76.27
Price Target188.28 (-21.81%)
Short Float %2.59%
Short Ratio0.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1
Avg EPS beat(2)-1.22%
Min EPS beat(2)-3.25%
Max EPS beat(2)0.8%
EPS beat(4)2
Avg EPS beat(4)-0.7%
Min EPS beat(4)-3.25%
Max EPS beat(4)0.8%
EPS beat(8)5
Avg EPS beat(8)0.01%
EPS beat(12)8
Avg EPS beat(12)0.42%
EPS beat(16)12
Avg EPS beat(16)3.54%
Revenue beat(2)2
Avg Revenue beat(2)2.95%
Min Revenue beat(2)2.55%
Max Revenue beat(2)3.35%
Revenue beat(4)4
Avg Revenue beat(4)1.82%
Min Revenue beat(4)0.63%
Max Revenue beat(4)3.35%
Revenue beat(8)6
Avg Revenue beat(8)1.01%
Revenue beat(12)7
Avg Revenue beat(12)0.58%
Revenue beat(16)10
Avg Revenue beat(16)1.32%
PT rev (1m)0%
PT rev (3m)28.35%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)3.5%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)6.53%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)3.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.79 | ||
| Fwd PE | 40.21 | ||
| P/S | 13.2 | ||
| P/FCF | 96.65 | ||
| P/OCF | 80.12 | ||
| P/B | 6.55 | ||
| P/tB | 23.3 | ||
| EV/EBITDA | 68.04 |
EPS(TTM)3.45
EY1.43%
EPS(NY)5.99
Fwd EY2.49%
FCF(TTM)2.49
FCFY1.03%
OCF(TTM)3.01
OCFY1.25%
SpS18.24
BVpS36.77
TBVpS10.33
PEG (NY)3.73
PEG (5Y)1.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 4.75% | ||
| ROCE | 3.74% | ||
| ROIC | 3.02% | ||
| ROICexc | 3.32% | ||
| ROICexgc | 12.11% | ||
| OM | 8.2% | ||
| PM (TTM) | 9.57% | ||
| GM | 47.62% | ||
| FCFM | 13.66% |
ROA(3y)1.86%
ROA(5y)11.77%
ROE(3y)2.26%
ROE(5y)18.33%
ROIC(3y)1.56%
ROIC(5y)11.51%
ROICexc(3y)1.71%
ROICexc(5y)19.09%
ROICexgc(3y)9.89%
ROICexgc(5y)26.73%
ROCE(3y)1.93%
ROCE(5y)14.23%
ROICexcg growth 3Y-44.61%
ROICexcg growth 5Y-14.53%
ROICexc growth 3Y-64.41%
ROICexc growth 5Y-32.89%
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%
F-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.8 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 27.16% | ||
| Cap/Sales | 2.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.69% | ||
| Profit Quality | 142.66% | ||
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z | 15.79 |
F-Score6
WACC11.56%
ROIC/WACC0.26
Cap/Depr(3y)15.32%
Cap/Depr(5y)38.8%
Cap/Sales(3y)2.26%
Cap/Sales(5y)2.32%
Profit Quality(3y)171.27%
Profit Quality(5y)129.37%
High Growth Momentum
Growth
EPS 1Y (TTM)24.1%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%-30.43%
EPS Next Y18.72%
EPS Next 2Y34.31%
EPS Next 3Y31.89%
EPS Next 5Y26.28%
Revenue 1Y (TTM)27.17%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%31.71%
Revenue Next Year28.8%
Revenue Next 2Y25.09%
Revenue Next 3Y22.87%
Revenue Next 5Y18.71%
EBIT growth 1Y191.83%
EBIT growth 3Y-17.55%
EBIT growth 5Y28.98%
EBIT Next Year15.36%
EBIT Next 3Y26.98%
EBIT Next 5Y25.29%
FCF growth 1Y116.55%
FCF growth 3Y-9.27%
FCF growth 5Y54.18%
OCF growth 1Y103.46%
OCF growth 3Y-4.77%
OCF growth 5Y43.89%