ADVANCED MICRO DEVICES (AMD) Stock Fundamental Analysis
NASDAQ:AMD - Nasdaq - US0079031078 - Common Stock - Currency: USD
Overall AMD gets a fundamental rating of 6 out of 10. We evaluated AMD against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. AMD has an excellent financial health rating, but there are some minor concerns on its profitability. AMD is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! 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.
Each year in the past 5 years AMD has been profitable.
AMD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AMD's Return On Assets of 2.37% is in line compared to the rest of the industry. AMD outperforms 55.56% of its industry peers.
With a Return On Equity value of 2.85%, AMD perfoms like the industry average, outperforming 53.70% of the companies in the same industry.
AMD has a Return On Invested Capital (2.66%) which 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 11.67%.
The 3 year average ROIC (1.56%) for AMD is below the current ROIC(2.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.37% | ||
| ROE | 2.85% | ||
| ROIC | 2.66% |
ROA(3y)1.86%
ROA(5y)11.77%
ROE(3y)2.26%
ROE(5y)18.33%
ROIC(3y)1.56%
ROIC(5y)11.51%
1.3 Margins
AMD has a Profit Margin (6.36%) which is comparable to the rest of the industry.
AMD's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.90%, AMD is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
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 49.35%, AMD is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
In the last couple of years the Gross Margin of AMD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.9% | ||
| PM (TTM) | 6.36% | ||
| GM | 49.35% |
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.
AMD has more shares outstanding than it did 1 year ago.
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 10.24. 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 10.24, AMD belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
The Debt to FCF ratio of AMD is 0.72, which is an excellent value as it means it would take AMD, only 0.72 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.72, AMD belongs to the best of the industry, outperforming 81.48% 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.
AMD's Debt to Equity ratio of 0.03 is in line compared to the rest of the industry. AMD outperforms 57.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.72 | ||
| Altman-Z | 10.24 |
ROIC/WACC0.22
WACC11.87%
2.3 Liquidity
A Current Ratio of 2.62 indicates that AMD has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.62, AMD is in line with its industry, outperforming 45.37% of the companies in the same industry.
AMD has a Quick Ratio of 1.83. This is a normal value and indicates that AMD is financially healthy and should not expect problems in meeting its short term obligations.
AMD has a Quick ratio (1.83) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.28% over the past year.
AMD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.99% yearly.
AMD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.69%.
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)25.28%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%41.56%
Revenue 1Y (TTM)13.69%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%24.16%
3.2 Future
AMD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.03% yearly.
Based on estimates for the next years, AMD will show a very strong growth in Revenue. The Revenue will grow by 21.87% on average per year.
EPS Next Y40.61%
EPS Next 2Y36.66%
EPS Next 3Y31.56%
EPS Next 5Y37.03%
Revenue Next Year24.77%
Revenue Next 2Y24.02%
Revenue Next 3Y21.85%
Revenue Next 5Y21.87%
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.
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
A Price/Earnings ratio of 33.39 indicates a quite expensive valuation of AMD.
Compared to the rest of the industry, the Price/Earnings ratio of AMD indicates a somewhat cheap valuation: AMD is cheaper than 64.81% of the companies listed in the same industry.
AMD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 30.30, which is the current average of the S&P500 Index.
AMD is valuated rather expensively with a Price/Forward Earnings ratio of 23.74.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMD indicates a somewhat cheap valuation: AMD is cheaper than 71.30% of the companies listed in the same industry.
AMD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.39 | ||
| Fwd PE | 23.74 |
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.
Based on the Price/Free Cash Flow ratio, AMD is valued a bit cheaper than 60.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.68 | ||
| EV/EBITDA | 34.56 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AMD has a very decent profitability rating, which may justify a higher PE ratio.
AMD's earnings are expected to grow with 31.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.82
PEG (5Y)0.86
EPS Next 2Y36.66%
EPS Next 3Y31.56%
5. Dividend
5.1 Amount
AMD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
110.84
-3.33 (-2.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners72.69%
Inst Owner Change-3.56%
Ins Owners0.33%
Ins Owner Change0.06%
Market Cap179.61B
Analysts78.55
Price Target174.87 (57.77%)
Short Float %2.97%
Short Ratio1.17
Dividend
| Industry Rank | Sector 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)-0.18%
Min EPS beat(2)-0.5%
Max EPS beat(2)0.13%
EPS beat(4)3
Avg EPS beat(4)0.35%
Min EPS beat(4)-0.5%
Max EPS beat(4)1.03%
EPS beat(8)6
Avg EPS beat(8)1.04%
EPS beat(12)9
Avg EPS beat(12)2.58%
EPS beat(16)13
Avg EPS beat(16)5.68%
Revenue beat(2)2
Avg Revenue beat(2)0.69%
Min Revenue beat(2)0.63%
Max Revenue beat(2)0.75%
Revenue beat(4)3
Avg Revenue beat(4)0.4%
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)0.49%
Revenue beat(16)10
Avg Revenue beat(16)1.66%
PT rev (1m)-5.91%
PT rev (3m)-9.18%
EPS NQ rev (1m)-4.17%
EPS NQ rev (3m)-18.61%
EPS NY rev (1m)-8.73%
EPS NY rev (3m)-9.41%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-3.12%
Revenue NY rev (1m)-1.45%
Revenue NY rev (3m)-1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.39 | ||
| Fwd PE | 23.74 | ||
| P/S | 6.97 | ||
| P/FCF | 74.68 | ||
| P/OCF | 59.06 | ||
| P/B | 3.12 | ||
| P/tB | 13.02 | ||
| EV/EBITDA | 34.56 |
EPS(TTM)3.32
EY3%
EPS(NY)4.67
Fwd EY4.21%
FCF(TTM)1.48
FCFY1.34%
OCF(TTM)1.88
OCFY1.69%
SpS15.91
BVpS35.53
TBVpS8.52
PEG (NY)0.82
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.37% | ||
| ROE | 2.85% | ||
| ROCE | 3.29% | ||
| ROIC | 2.66% | ||
| ROICexc | 2.9% | ||
| ROICexgc | 12.63% | ||
| OM | 7.9% | ||
| PM (TTM) | 6.36% | ||
| GM | 49.35% | ||
| FCFM | 9.33% |
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-Score9
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.72 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 20.02% | ||
| Cap/Sales | 2.47% | ||
| Interest Coverage | 28.31 | ||
| Cash Conversion | 58.31% | ||
| Profit Quality | 146.56% | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 10.24 |
F-Score9
WACC11.87%
ROIC/WACC0.22
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)25.28%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%41.56%
EPS Next Y40.61%
EPS Next 2Y36.66%
EPS Next 3Y31.56%
EPS Next 5Y37.03%
Revenue 1Y (TTM)13.69%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%24.16%
Revenue Next Year24.77%
Revenue Next 2Y24.02%
Revenue Next 3Y21.85%
Revenue Next 5Y21.87%
EBIT growth 1Y455.31%
EBIT growth 3Y-17.55%
EBIT growth 5Y28.98%
EBIT Next Year39.55%
EBIT Next 3Y39.97%
EBIT Next 5Y35.87%
FCF growth 1Y114.54%
FCF growth 3Y-9.27%
FCF growth 5Y54.18%
OCF growth 1Y82.42%
OCF growth 3Y-4.77%
OCF growth 5Y43.89%