ADVANCED MICRO DEVICES (AMD) Stock Fundamental Analysis
USA - NASDAQ:AMD - US0079031078 - Common Stock
240.52 USD
-6.29 (-2.55%)
238.4 USD
-2.12 (-0.88%)
AMD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 shows excellent growth, but is valued quite expensive already. These ratings could make AMD a good candidate for growth investing.
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.
In the past 5 years AMD has always been profitable.
AMD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.30%, AMD is doing good in the industry, outperforming 67.86% of the companies in the same industry.
AMD has a better Return On Equity (5.44%) than 62.50% of its industry peers.
The Return On Invested Capital of AMD (3.71%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for AMD is significantly below the industry average of 10.86%.
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 the better half of the industry, outperforming 68.75% of the companies in the same industry.
AMD's Profit Margin has improved in the last couple of years.
The Operating Margin of AMD (9.33%) is better than 62.50% of its industry peers.
In the last couple of years the Operating Margin of AMD has remained more or less at the same level.
The Gross Margin of AMD (48.26%) is comparable to the rest of the industry.
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.
AMD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AMD has more shares outstanding
Compared to 1 year ago, AMD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 15.42 indicates that AMD is not in any danger for bankruptcy at the moment.
AMD's Altman-Z score of 15.42 is amongst the best of the industry. AMD outperforms 86.61% of its industry peers.
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 better Debt to FCF ratio (0.59) than 79.46% 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 better Debt to Equity ratio (0.04) than 63.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 15.42 |
ROIC/WACC0.35
WACC10.69%
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.
Looking at the Current ratio, with a value of 2.31, AMD is doing worse than 65.18% of the companies in the same industry.
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 in the lower half of the industry: AMD underperforms 66.07% of its industry peers.
| 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.
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 31.83% in the past year. This is a very strong growth!
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 28.88% on average per year.
Based on estimates for the next years, AMD will show a very strong growth in Revenue. The Revenue will grow by 22.77% on average per year.
EPS Next Y18.93%
EPS Next 2Y38.26%
EPS Next 3Y42.79%
EPS Next 5Y28.88%
Revenue Next Year29.04%
Revenue Next 2Y28.15%
Revenue Next 3Y31.16%
Revenue Next 5Y22.77%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
AMD is valuated quite expensively with a Price/Earnings ratio of 64.48.
AMD's Price/Earnings ratio is in line with the industry average.
AMD is valuated expensively when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 37.90 indicates a quite expensive valuation of AMD.
The rest of the industry has a similar Price/Forward Earnings ratio as AMD.
AMD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.62.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.48 | ||
| Fwd PE | 37.9 |
4.2 Price Multiples
AMD's Enterprise Value to EBITDA is on the same level as the industry average.
AMD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.65 | ||
| EV/EBITDA | 64.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AMD has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AMD's earnings are expected to grow with 42.79% in the coming years.
PEG (NY)3.41
PEG (5Y)1.65
EPS Next 2Y38.26%
EPS Next 3Y42.79%
5. Dividend
5.1 Amount
AMD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
240.52
-6.29 (-2.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.37%
Inst Owner Change2.03%
Ins Owners0.34%
Ins Owner Change1.5%
Market Cap390.33B
Revenue(TTM)32.03B
Net Income(TTM)3.31B
Analysts79.32
Price Target245.38 (2.02%)
Short Float %2.41%
Short Ratio0.66
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)-0.56%
Min EPS beat(2)-3.25%
Max EPS beat(2)2.13%
EPS beat(4)3
Avg EPS beat(4)-0.05%
Min EPS beat(4)-3.25%
Max EPS beat(4)2.13%
EPS beat(8)5
Avg EPS beat(8)-0.03%
EPS beat(12)9
Avg EPS beat(12)0.85%
EPS beat(16)12
Avg EPS beat(16)3.18%
Revenue beat(2)2
Avg Revenue beat(2)3.62%
Min Revenue beat(2)2.55%
Max Revenue beat(2)4.69%
Revenue beat(4)4
Avg Revenue beat(4)2.83%
Min Revenue beat(4)0.75%
Max Revenue beat(4)4.69%
Revenue beat(8)6
Avg Revenue beat(8)1.5%
Revenue beat(12)8
Avg Revenue beat(12)1.13%
Revenue beat(16)10
Avg Revenue beat(16)1.38%
PT rev (1m)30.33%
PT rev (3m)53.57%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)1.17%
EPS NY rev (1m)0.18%
EPS NY rev (3m)0.57%
Revenue NQ rev (1m)5.18%
Revenue NQ rev (3m)5.22%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.48 | ||
| Fwd PE | 37.9 | ||
| P/S | 12.19 | ||
| P/FCF | 71.65 | ||
| P/OCF | 60.91 | ||
| P/B | 6.42 | ||
| P/tB | 21.15 | ||
| EV/EBITDA | 64.02 |
EPS(TTM)3.73
EY1.55%
EPS(NY)6.35
Fwd EY2.64%
FCF(TTM)3.36
FCFY1.4%
OCF(TTM)3.95
OCFY1.64%
SpS19.74
BVpS37.46
TBVpS11.37
PEG (NY)3.41
PEG (5Y)1.65
Graham Number56.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.3% | ||
| ROE | 5.44% | ||
| ROCE | 4.58% | ||
| ROIC | 3.71% | ||
| ROICexc | 4.17% | ||
| ROICexgc | 15.47% | ||
| OM | 9.33% | ||
| PM (TTM) | 10.32% | ||
| GM | 48.26% | ||
| FCFM | 17.01% |
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%
ROICexgc growth 3Y-44.61%
ROICexgc 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-Score5
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.59 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 31.91% | ||
| Cap/Sales | 3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 106.87% | ||
| Profit Quality | 164.79% | ||
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 15.42 |
F-Score5
WACC10.69%
ROIC/WACC0.35
Cap/Depr(3y)15.78%
Cap/Depr(5y)43.11%
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)24.33%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%30.43%
EPS Next Y18.93%
EPS Next 2Y38.26%
EPS Next 3Y42.79%
EPS Next 5Y28.88%
Revenue 1Y (TTM)31.83%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%35.59%
Revenue Next Year29.04%
Revenue Next 2Y28.15%
Revenue Next 3Y31.16%
Revenue Next 5Y22.77%
EBIT growth 1Y125%
EBIT growth 3Y-17.55%
EBIT growth 5Y28.98%
EBIT Next Year15.36%
EBIT Next 3Y26.98%
EBIT Next 5Y32.7%
FCF growth 1Y312.1%
FCF growth 3Y-9.27%
FCF growth 5Y54.18%
OCF growth 1Y245.82%
OCF growth 3Y-4.77%
OCF growth 5Y43.89%
ADVANCED MICRO DEVICES / AMD FAQ
Can you provide the ChartMill fundamental rating for ADVANCED MICRO DEVICES?
ChartMill assigns a fundamental rating of 6 / 10 to AMD.
What is the valuation status for AMD stock?
ChartMill assigns a valuation rating of 3 / 10 to ADVANCED MICRO DEVICES (AMD). This can be considered as Overvalued.
Can you provide the profitability details for ADVANCED MICRO DEVICES?
ADVANCED MICRO DEVICES (AMD) has a profitability rating of 7 / 10.
How financially healthy is ADVANCED MICRO DEVICES?
The financial health rating of ADVANCED MICRO DEVICES (AMD) is 6 / 10.
What is the earnings growth outlook for ADVANCED MICRO DEVICES?
The Earnings per Share (EPS) of ADVANCED MICRO DEVICES (AMD) is expected to grow by 18.93% in the next year.