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ADVANCED MICRO DEVICES (AMD) Stock Fundamental Analysis

NASDAQ:AMD - Nasdaq - US0079031078 - Common Stock

122.78  +1.32 (+1.09%)

Fundamental Rating

6

AMD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 109 industry peers in the Semiconductors & Semiconductor Equipment industry. AMD has an average financial health and profitability rating. AMD is valued quite expensive, but it does show an excellent growth. With these ratings, AMD could be worth investigating further for growth investing!.


Dividend Valuation Growth Profitability Health

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5

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.
Each year in the past 5 years AMD has been profitable.
Each year in the past 5 years AMD had a positive operating cash flow.
AMD Yearly Net Income VS EBIT VS OCF VS FCFAMD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B

1.2 Ratios

AMD's Return On Assets of 2.62% is in line compared to the rest of the industry. AMD outperforms 54.63% of its industry peers.
Looking at the Return On Equity, with a value of 3.20%, AMD is in line with its industry, outperforming 51.85% of the companies in the same industry.
AMD's Return On Invested Capital of 1.69% is in line compared to the rest of the industry. AMD outperforms 51.85% of its industry peers.
AMD had an Average Return On Invested Capital over the past 3 years of 12.36%. This is in line with the industry average of 11.96%.
The last Return On Invested Capital (1.69%) for AMD is well below the 3 year average (12.36%), which needs to be investigated, but indicates that AMD had better years and this may not be a problem.
Industry RankSector Rank
ROA 2.62%
ROE 3.2%
ROIC 1.69%
ROA(3y)9.56%
ROA(5y)12.42%
ROE(3y)15.37%
ROE(5y)20.17%
ROIC(3y)12.36%
ROIC(5y)13.18%
AMD Yearly ROA, ROE, ROICAMD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 100 -100 150

1.3 Margins

Looking at the Profit Margin, with a value of 7.52%, AMD is in line with its industry, outperforming 58.33% of the companies in the same industry.
AMD's Profit Margin has declined in the last couple of years.
AMD has a Operating Margin (5.47%) which is in line with its industry peers.
AMD's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 48.38%, AMD is in the better half of the industry, outperforming 60.19% of the companies in the same industry.
AMD's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 5.47%
PM (TTM) 7.52%
GM 48.38%
OM growth 3Y-51.31%
OM growth 5Y-25.32%
PM growth 3Y-47.15%
PM growth 5Y-6.27%
GM growth 3Y1.18%
GM growth 5Y4.06%
AMD Yearly Profit, Operating, Gross MarginsAMD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40

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6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AMD is destroying value.
Compared to 1 year ago, AMD has more shares outstanding
Compared to 5 years ago, AMD has more shares outstanding
AMD has a better debt/assets ratio than last year.
AMD Yearly Shares OutstandingAMD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B
AMD Yearly Total Debt VS Total AssetsAMD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B

2.2 Solvency

An Altman-Z score of 9.99 indicates that AMD is not in any danger for bankruptcy at the moment.
AMD has a Altman-Z score of 9.99. This is in the better half of the industry: AMD outperforms 75.93% of its industry peers.
AMD has a debt to FCF ratio of 1.11. This is a very positive value and a sign of high solvency as it would only need 1.11 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.11, AMD is doing good in the industry, outperforming 79.63% of the companies in the same industry.
AMD has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.03, AMD is in line with its industry, outperforming 59.26% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.03
Debt/FCF 1.11
Altman-Z 9.99
ROIC/WACC0.11
WACC14.69%
AMD Yearly LT Debt VS Equity VS FCFAMD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10B 20B 30B 40B 50B

2.3 Liquidity

A Current Ratio of 2.50 indicates that AMD has no problem at all paying its short term obligations.
The Current ratio of AMD (2.50) is comparable to the rest of the industry.
AMD has a Quick Ratio of 1.78. This is a normal value and indicates that AMD is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.78, AMD perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.5
Quick Ratio 1.78
AMD Yearly Current Assets VS Current LiabilitesAMD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

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9

3. Growth

3.1 Past

AMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.73%, which is quite good.
Measured over the past years, AMD shows a very strong growth in Earnings Per Share. The EPS has been growing by 41.94% on average per year.
The Revenue has grown by 9.88% in the past year. This is quite good.
Measured over the past years, AMD shows a very strong growth in Revenue. The Revenue has been growing by 28.49% on average per year.
EPS 1Y (TTM)16.73%
EPS 3Y27.12%
EPS 5Y41.94%
EPS Q2Q%31.43%
Revenue 1Y (TTM)9.88%
Revenue growth 3Y32.44%
Revenue growth 5Y28.49%
Sales Q2Q%17.57%

3.2 Future

AMD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.60% yearly.
AMD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.06% yearly.
EPS Next Y26.38%
EPS Next 2Y38.93%
EPS Next 3Y39.19%
EPS Next 5Y34.6%
Revenue Next Year13.12%
Revenue Next 2Y19.67%
Revenue Next 3Y21.04%
Revenue Next 5Y20.06%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
AMD Yearly Revenue VS EstimatesAMD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 10B 20B 30B 40B 50B
AMD Yearly EPS VS EstimatesAMD Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 2 4 6 8 10

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3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 40.93 indicates a quite expensive valuation of AMD.
AMD's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of AMD to the average of the S&P500 Index (27.94), we can say AMD is valued slightly more expensively.
With a Price/Forward Earnings ratio of 24.00, AMD is valued on the expensive side.
71.30% of the companies in the same industry are more expensive than AMD, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.11, AMD is valued at the same level.
Industry RankSector Rank
PE 40.93
Fwd PE 24
AMD Price Earnings VS Forward Price EarningsAMD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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 RankSector Rank
P/FCF 128.05
EV/EBITDA 43.65
AMD Per share dataAMD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AMD's earnings are expected to grow with 39.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.55
PEG (5Y)0.98
EPS Next 2Y38.93%
EPS Next 3Y39.19%

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0

5. Dividend

5.1 Amount

AMD does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ADVANCED MICRO DEVICES

NASDAQ:AMD (1/21/2025, 3:41:06 PM)

122.78

+1.32 (+1.09%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)10-29 2024-10-29/amc
Earnings (Next)02-04 2025-02-04/amc
Inst Owners72.69%
Inst Owner Change-0.64%
Ins Owners0.33%
Ins Owner Change6.73%
Market Cap199.25B
Analysts81.38
Price Target185.86 (51.38%)
Short Float %3.68%
Short Ratio1.6
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
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)0.27%
Min EPS beat(2)-0.5%
Max EPS beat(2)1.03%
EPS beat(4)2
Avg EPS beat(4)-0.01%
Min EPS beat(4)-1.31%
Max EPS beat(4)1.03%
EPS beat(8)6
Avg EPS beat(8)1.3%
EPS beat(12)9
Avg EPS beat(12)4.25%
EPS beat(16)13
Avg EPS beat(16)6.26%
Revenue beat(2)2
Avg Revenue beat(2)0.78%
Min Revenue beat(2)0.63%
Max Revenue beat(2)0.93%
Revenue beat(4)2
Avg Revenue beat(4)0.16%
Min Revenue beat(4)-0.73%
Max Revenue beat(4)0.93%
Revenue beat(8)4
Avg Revenue beat(8)0.27%
Revenue beat(12)6
Avg Revenue beat(12)0.9%
Revenue beat(16)10
Avg Revenue beat(16)1.99%
PT rev (1m)-1.04%
PT rev (3m)-2.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
Industry RankSector Rank
PE 40.93
Fwd PE 24
P/S 8.2
P/FCF 128.05
P/OCF 93.85
P/B 3.5
P/tB 15.85
EV/EBITDA 43.65
EPS(TTM)3
EY2.44%
EPS(NY)5.11
Fwd EY4.17%
FCF(TTM)0.96
FCFY0.78%
OCF(TTM)1.31
OCFY1.07%
SpS14.97
BVpS35.12
TBVpS7.75
PEG (NY)1.55
PEG (5Y)0.98
Profitability
Industry RankSector Rank
ROA 2.62%
ROE 3.2%
ROCE 2.14%
ROIC 1.69%
ROICexc 1.82%
ROICexgc 7.96%
OM 5.47%
PM (TTM) 7.52%
GM 48.38%
FCFM 6.4%
ROA(3y)9.56%
ROA(5y)12.42%
ROE(3y)15.37%
ROE(5y)20.17%
ROIC(3y)12.36%
ROIC(5y)13.18%
ROICexc(3y)21.67%
ROICexc(5y)22.25%
ROICexgc(3y)29.77%
ROICexgc(5y)29.06%
ROCE(3y)15.65%
ROCE(5y)16.69%
ROICexcg growth 3Y-53.24%
ROICexcg growth 5Y-40.46%
ROICexc growth 3Y-72.6%
ROICexc growth 5Y-53.91%
OM growth 3Y-51.31%
OM growth 5Y-25.32%
PM growth 3Y-47.15%
PM growth 5Y-6.27%
GM growth 3Y1.18%
GM growth 5Y4.06%
F-Score9
Asset Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 0.03
Debt/FCF 1.11
Debt/EBITDA 0.39
Cap/Depr 18.24%
Cap/Sales 2.33%
Interest Coverage 250
Cash Conversion 47.86%
Profit Quality 85.21%
Current Ratio 2.5
Quick Ratio 1.78
Altman-Z 9.99
F-Score9
WACC14.69%
ROIC/WACC0.11
Cap/Depr(3y)33.52%
Cap/Depr(5y)58.51%
Cap/Sales(3y)2.05%
Cap/Sales(5y)2.48%
Profit Quality(3y)156.36%
Profit Quality(5y)116.25%
High Growth Momentum
Growth
EPS 1Y (TTM)16.73%
EPS 3Y27.12%
EPS 5Y41.94%
EPS Q2Q%31.43%
EPS Next Y26.38%
EPS Next 2Y38.93%
EPS Next 3Y39.19%
EPS Next 5Y34.6%
Revenue 1Y (TTM)9.88%
Revenue growth 3Y32.44%
Revenue growth 5Y28.49%
Sales Q2Q%17.57%
Revenue Next Year13.12%
Revenue Next 2Y19.67%
Revenue Next 3Y21.04%
Revenue Next 5Y20.06%
EBIT growth 1Y1179.67%
EBIT growth 3Y-35.52%
EBIT growth 5Y-4.04%
EBIT Next Year89.65%
EBIT Next 3Y41.85%
EBIT Next 5Y33.85%
FCF growth 1Y-54.34%
FCF growth 3Y13%
FCF growth 5YN/A
OCF growth 1Y-44.42%
OCF growth 3Y15.89%
OCF growth 5Y117.82%