ADVANCED MICRO DEVICES (AMD) Stock Fundamental Analysis
NASDAQ:AMD - Nasdaq - US0079031078 - Common Stock - Currency: USD
Taking everything into account, AMD scores 6 out of 10 in our fundamental rating. AMD was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. AMD has an average financial health and profitability rating. AMD is valued quite expensively, but it does show have an excellent growth rating. 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.
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
AMD's Return On Assets of 3.11% is in line compared to the rest of the industry. AMD outperforms 56.36% of its industry peers.
With a Return On Equity value of 3.85%, AMD perfoms like the industry average, outperforming 52.73% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.52%, AMD is in line with its industry, outperforming 54.55% of the companies in the same industry.
AMD had an Average Return On Invested Capital over the past 3 years of 1.56%. This is significantly below the industry average of 10.58%.
The last Return On Invested Capital (3.52%) for AMD is above the 3 year average (1.56%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 3.85% | ||
| ROIC | 3.52% |
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
The Profit Margin of AMD (8.03%) is comparable to the rest of the industry.
AMD's Profit Margin has improved in the last couple of years.
AMD has a Operating Margin of 10.17%. This is in the better half of the industry: AMD outperforms 63.64% of its industry peers.
In the last couple of years the Operating Margin of AMD has remained more or less at the same level.
Looking at the Gross Margin, with a value of 50.09%, AMD is in line with its industry, outperforming 59.09% of the companies in the same industry.
AMD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.17% | ||
| PM (TTM) | 8.03% | ||
| GM | 50.09% |
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.
The number of shares outstanding for AMD has been increased compared to 1 year ago.
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
An Altman-Z score of 11.05 indicates that AMD is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 11.05, AMD belongs to the best of the industry, outperforming 80.91% of the companies in the same industry.
The Debt to FCF ratio of AMD is 1.51, which is an excellent value as it means it would take AMD, only 1.51 years of fcf income to pay off all of its debts.
AMD's Debt to FCF ratio of 1.51 is fine compared to the rest of the industry. AMD outperforms 70.91% of its industry peers.
AMD has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.07, AMD is in line with its industry, outperforming 57.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 11.05 |
ROIC/WACC0.35
WACC10.07%
2.3 Liquidity
AMD has a Current Ratio of 2.80. This indicates that AMD is financially healthy and has no problem in meeting its short term obligations.
AMD has a Current ratio (2.80) which is in line with its industry peers.
A Quick Ratio of 1.97 indicates that AMD should not have too much problems paying its short term obligations.
The Quick ratio of AMD (1.97) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.8 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.08% 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
The Revenue has grown by 21.71% in the past year. This is a very strong growth!
Measured over the past years, AMD shows a very strong growth in Revenue. The Revenue has been growing by 30.81% on average per year.
EPS 1Y (TTM)37.08%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%54.84%
Revenue 1Y (TTM)21.71%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%35.9%
3.2 Future
The Earnings Per Share is expected to grow by 24.87% on average over the next years. This is a very strong growth
AMD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.09% yearly.
EPS Next Y17.75%
EPS Next 2Y31.54%
EPS Next 3Y27.37%
EPS Next 5Y24.87%
Revenue Next Year23.63%
Revenue Next 2Y20.6%
Revenue Next 3Y19.14%
Revenue Next 5Y17.09%
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
With a Price/Earnings ratio of 38.77, 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 27.15. AMD is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 24.70 indicates a rather expensive valuation of AMD.
The rest of the industry has a similar Price/Forward Earnings ratio as AMD.
The average S&P500 Price/Forward Earnings ratio is at 21.60. AMD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.77 | ||
| Fwd PE | 24.7 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AMD.
The rest of the industry has a similar Price/Free Cash Flow ratio as AMD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.57 | ||
| EV/EBITDA | 38.42 |
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.
AMD's earnings are expected to grow with 27.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.18
PEG (5Y)0.99
EPS Next 2Y31.54%
EPS Next 3Y27.37%
5. Dividend
5.1 Amount
No dividends for AMD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
141.9
-1.91 (-1.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners68.13%
Inst Owner Change-2.05%
Ins Owners0.33%
Ins Owner Change0.45%
Market Cap230.08B
Analysts77.86
Price Target134.14 (-5.47%)
Short Float %2.46%
Short Ratio0.89
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)2
Avg EPS beat(2)0.47%
Min EPS beat(2)0.13%
Max EPS beat(2)0.8%
EPS beat(4)3
Avg EPS beat(4)0.37%
Min EPS beat(4)-0.5%
Max EPS beat(4)1.03%
EPS beat(8)6
Avg EPS beat(8)0.48%
EPS beat(12)9
Avg EPS beat(12)0.74%
EPS beat(16)13
Avg EPS beat(16)4.67%
Revenue beat(2)2
Avg Revenue beat(2)2.05%
Min Revenue beat(2)0.75%
Max Revenue beat(2)3.35%
Revenue beat(4)4
Avg Revenue beat(4)1.42%
Min Revenue beat(4)0.63%
Max Revenue beat(4)3.35%
Revenue beat(8)5
Avg Revenue beat(8)0.68%
Revenue beat(12)6
Avg Revenue beat(12)0.31%
Revenue beat(16)10
Avg Revenue beat(16)1.49%
PT rev (1m)-1.93%
PT rev (3m)-10.49%
EPS NQ rev (1m)-1.91%
EPS NQ rev (3m)-42.54%
EPS NY rev (1m)-2.34%
EPS NY rev (3m)-16.05%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.77 | ||
| Fwd PE | 24.7 | ||
| P/S | 8.29 | ||
| P/FCF | 83.57 | ||
| P/OCF | 66.52 | ||
| P/B | 3.97 | ||
| P/tB | 15.67 | ||
| EV/EBITDA | 38.42 |
EPS(TTM)3.66
EY2.58%
EPS(NY)5.74
Fwd EY4.05%
FCF(TTM)1.7
FCFY1.2%
OCF(TTM)2.13
OCFY1.5%
SpS17.11
BVpS35.7
TBVpS9.05
PEG (NY)2.18
PEG (5Y)0.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 3.85% | ||
| ROCE | 4.42% | ||
| ROIC | 3.52% | ||
| ROICexc | 3.97% | ||
| ROICexgc | 15.97% | ||
| OM | 10.17% | ||
| PM (TTM) | 8.03% | ||
| GM | 50.09% | ||
| FCFM | 9.92% |
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-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 1.51 | ||
| Debt/EBITDA | 0.7 | ||
| Cap/Depr | 22.71% | ||
| Cap/Sales | 2.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.33% | ||
| Profit Quality | 123.62% | ||
| Current Ratio | 2.8 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z | 11.05 |
F-Score7
WACC10.07%
ROIC/WACC0.35
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)37.08%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%54.84%
EPS Next Y17.75%
EPS Next 2Y31.54%
EPS Next 3Y27.37%
EPS Next 5Y24.87%
Revenue 1Y (TTM)21.71%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%35.9%
Revenue Next Year23.63%
Revenue Next 2Y20.6%
Revenue Next 3Y19.14%
Revenue Next 5Y17.09%
EBIT growth 1Y417.62%
EBIT growth 3Y-17.55%
EBIT growth 5Y28.98%
EBIT Next Year13.73%
EBIT Next 3Y28.33%
EBIT Next 5Y22.45%
FCF growth 1Y9.29%
FCF growth 3Y-9.27%
FCF growth 5Y54.18%
OCF growth 1Y13.19%
OCF growth 3Y-4.77%
OCF growth 5Y43.89%