ADVANCED MICRO DEVICES (AMD) Stock Fundamental Analysis
USA - NASDAQ:AMD - US0079031078 - Common Stock
231.225 USD
-6.47 (-2.72%)
We assign a fundamental rating of 6 out of 10 to AMD. 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. These ratings would make AMD suitable 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
The Return On Assets of AMD (4.30%) is better than 66.96% of its industry peers.
AMD has a Return On Equity of 5.44%. This is in the better half of the industry: AMD outperforms 62.50% of its industry peers.
AMD's Return On Invested Capital of 3.71% is fine compared to the rest of the industry. AMD outperforms 60.71% of its industry peers.
AMD had an Average Return On Invested Capital over the past 3 years of 1.56%. This is significantly below the industry average of 11.05%.
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
Looking at the Profit Margin, with a value of 10.32%, AMD is in the better half of the industry, outperforming 70.54% of the companies in the same industry.
In the last couple of years the Profit Margin of AMD has grown nicely.
The Operating Margin of AMD (9.33%) is better than 63.39% of its industry peers.
AMD's Operating Margin has been stable in the last couple of years.
AMD's Gross Margin of 48.26% is in line compared to the rest of the industry. AMD outperforms 58.04% of 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
AMD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AMD has more shares outstanding
AMD has more shares outstanding than it did 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 15.25. 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 15.25, AMD belongs to the top of the industry, outperforming 82.14% 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 79.46% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that AMD is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.04, AMD is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 15.25 |
ROIC/WACC0.31
WACC11.85%
2.3 Liquidity
A Current Ratio of 2.31 indicates that AMD has no problem at all paying its short term obligations.
With a Current ratio value of 2.31, AMD is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
A Quick Ratio of 1.68 indicates that AMD should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.68, AMD is doing worse than 66.07% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 38.99% on average over the past years. This is a very strong growth
AMD shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.83%.
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
The Earnings Per Share is expected to grow by 28.88% 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 22.77% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 61.99, which means the current valuation is very expensive for AMD.
The rest of the industry has a similar Price/Earnings ratio as AMD.
Compared to an average S&P500 Price/Earnings ratio of 25.67, AMD is valued quite expensively.
AMD is valuated quite expensively with a Price/Forward Earnings ratio of 36.43.
The rest of the industry has a similar Price/Forward Earnings ratio as AMD.
When comparing the Price/Forward Earnings ratio of AMD to the average of the S&P500 Index (31.86), we can say AMD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.99 | ||
| Fwd PE | 36.43 |
4.2 Price Multiples
AMD's Enterprise Value to EBITDA ratio is in line with the industry average.
AMD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.88 | ||
| EV/EBITDA | 63.26 |
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.
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 42.79% in the coming years.
PEG (NY)3.27
PEG (5Y)1.59
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 |
NASDAQ:AMD (11/7/2025, 2:49:08 PM)
231.225
-6.47 (-2.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.37%
Inst Owner Change-1.03%
Ins Owners0.34%
Ins Owner Change1.13%
Market Cap375.24B
Revenue(TTM)32.03B
Net Income(TTM)3.31B
Analysts79.32
Price Target245.38 (6.12%)
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)67.27%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)1.23%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)5.52%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)2.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.99 | ||
| Fwd PE | 36.43 | ||
| P/S | 11.72 | ||
| P/FCF | 68.88 | ||
| P/OCF | 58.56 | ||
| P/B | 6.17 | ||
| P/tB | 20.33 | ||
| EV/EBITDA | 63.26 |
EPS(TTM)3.73
EY1.61%
EPS(NY)6.35
Fwd EY2.74%
FCF(TTM)3.36
FCFY1.45%
OCF(TTM)3.95
OCFY1.71%
SpS19.74
BVpS37.46
TBVpS11.37
PEG (NY)3.27
PEG (5Y)1.59
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 | 15.25 |
F-Score5
WACC11.85%
ROIC/WACC0.31
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.