252.03 USD
+0.72 (+0.29%)
253.84 USD
+1.81 (+0.72%)
Overall AMD gets a fundamental rating of 6 out of 10. We evaluated AMD against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. AMD scores excellent on profitability, but there are some minor concerns on its financial health. AMD is valued quite expensively, but it does show have an excellent growth rating. These ratings would make AMD suitable 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.
- In the past 5 years AMD always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of AMD (4.30%) is better than 67.26% of its industry peers.
- AMD has a Return On Equity of 5.44%. This is in the better half of the industry: AMD outperforms 60.18% of its industry peers.
- AMD has a Return On Invested Capital (3.71%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for AMD is significantly below the industry average of 10.78%.
- 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
- AMD has a better Profit Margin (10.32%) than 66.37% of its industry peers.
- In the last couple of years the Profit Margin of AMD has grown nicely.
- AMD has a better Operating Margin (9.33%) than 61.06% 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.
- In the last couple of years the Gross Margin of AMD has grown nicely.
| 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
- The debt/assets ratio for AMD has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 16.12 indicates that AMD is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 16.12, AMD belongs to the best of the industry, outperforming 82.30% 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 Debt to FCF ratio of 0.59. This is in the better half of the industry: AMD outperforms 79.65% 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's Debt to Equity ratio of 0.04 is fine compared to the rest of the industry. AMD outperforms 64.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 16.12 |
ROIC/WACC0.34
WACC10.89%
2.3 Liquidity
- A Current Ratio of 2.31 indicates that AMD has no problem at all paying its short term obligations.
- AMD's Current ratio of 2.31 is on the low side compared to the rest of the industry. AMD is outperformed by 65.49% of its industry peers.
- A Quick Ratio of 1.68 indicates that AMD should not have too much problems paying its short term obligations.
- AMD has a worse Quick ratio (1.68) than 66.37% 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.
- AMD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.99% yearly.
- 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 40.31% on average per year.
- The Revenue is expected to grow by 34.18% on average over the next years. This is a very strong growth
EPS Next Y21.25%
EPS Next 2Y41.36%
EPS Next 3Y46.55%
EPS Next 5Y40.31%
Revenue Next Year32.85%
Revenue Next 2Y32.51%
Revenue Next 3Y35.01%
Revenue Next 5Y34.18%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 67.57 indicates a quite expensive valuation of AMD.
- AMD's Price/Earnings is on the same level as the industry average.
- AMD is valuated expensively when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 37.99, the valuation of AMD can be described as expensive.
- AMD's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of AMD to the average of the S&P500 Index (25.96), we can say AMD is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.57 | ||
| Fwd PE | 37.99 |
4.2 Price Multiples
- AMD's Enterprise Value to EBITDA is on the same level as the industry average.
- 61.06% of the companies in the same industry are more expensive than AMD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.31 | ||
| EV/EBITDA | 67.16 |
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 46.55% in the coming years.
PEG (NY)3.18
PEG (5Y)1.73
EPS Next 2Y41.36%
EPS Next 3Y46.55%
5. Dividend
5.1 Amount
- AMD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.
Can you provide the valuation status for ADVANCED MICRO DEVICES?
ChartMill assigns a valuation rating of 3 / 10 to ADVANCED MICRO DEVICES (AMD). This can be considered as Overvalued.
How profitable is ADVANCED MICRO DEVICES (AMD) stock?
ADVANCED MICRO DEVICES (AMD) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for AMD stock?
The Price/Earnings (PE) ratio for ADVANCED MICRO DEVICES (AMD) is 67.57 and the Price/Book (PB) ratio is 6.75.
Can you provide the expected EPS growth for AMD stock?
The Earnings per Share (EPS) of ADVANCED MICRO DEVICES (AMD) is expected to grow by 21.25% in the next year.