ADVANCED MICRO DEVICES (AMD) Stock Fundamental Analysis
USA - NASDAQ:AMD - US0079031078 - Common Stock
160.65 USD
-0.51 (-0.32%)
AMD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. While AMD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AMD is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, AMD could be worth investigating further 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.
Each year in the past 5 years AMD had a positive operating cash flow.
1.2 Ratios
AMD has a Return On Assets of 3.79%. This is in the better half of the industry: AMD outperforms 63.39% of its industry peers.
The Return On Equity of AMD (4.75%) is better than 60.71% of its industry peers.
AMD has a Return On Invested Capital (3.02%) 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 10.87%.
The 3 year average ROIC (1.56%) for AMD is below the current ROIC(3.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 4.75% | ||
| ROIC | 3.02% |
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
With a decent Profit Margin value of 9.57%, AMD is doing good in the industry, outperforming 68.75% of the companies in the same industry.
In the last couple of years the Profit Margin of AMD has grown nicely.
AMD's Operating Margin of 8.20% is fine compared to the rest of the industry. AMD outperforms 63.39% of its industry peers.
In the last couple of years the Operating Margin of AMD has remained more or less at the same level.
AMD has a Gross Margin (47.62%) which 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 | 8.2% | ||
| PM (TTM) | 9.57% | ||
| GM | 47.62% |
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.
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 11.17. This indicates that AMD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AMD (11.17) is better than 78.57% of its industry peers.
The Debt to FCF ratio of AMD is 0.80, which is an excellent value as it means it would take AMD, only 0.80 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.80, AMD is in the better half of the industry, outperforming 77.68% of the companies in the same industry.
A Debt/Equity ratio of 0.05 indicates that AMD is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.05, AMD perfoms like the industry average, outperforming 58.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 11.17 |
ROIC/WACC0.27
WACC11.31%
2.3 Liquidity
A Current Ratio of 2.49 indicates that AMD has no problem at all paying its short term obligations.
The Current ratio of AMD (2.49) is comparable to the rest of the industry.
A Quick Ratio of 1.81 indicates that AMD should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.81, AMD is doing worse than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.10% 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.
Looking at the last year, AMD shows a very strong growth in Revenue. The Revenue has grown by 27.17%.
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)24.1%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%-30.43%
Revenue 1Y (TTM)27.17%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%31.71%
3.2 Future
The Earnings Per Share is expected to grow by 26.28% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 18.71% on average over the next years. This is quite good.
EPS Next Y18.92%
EPS Next 2Y34.26%
EPS Next 3Y31.88%
EPS Next 5Y26.28%
Revenue Next Year28.86%
Revenue Next 2Y25.07%
Revenue Next 3Y22.81%
Revenue Next 5Y18.71%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 46.57, 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 27.27. AMD is valued rather expensively when compared to this.
AMD is valuated quite expensively with a Price/Forward Earnings ratio of 26.85.
AMD's Price/Forward Earnings is on the same level as the industry average.
AMD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.57 | ||
| Fwd PE | 26.85 |
4.2 Price Multiples
AMD's Enterprise Value to EBITDA ratio is in line with the industry average.
60.71% 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 | 64.48 | ||
| EV/EBITDA | 46.82 |
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 31.88% in the coming years.
PEG (NY)2.46
PEG (5Y)1.19
EPS Next 2Y34.26%
EPS Next 3Y31.88%
5. Dividend
5.1 Amount
AMD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:AMD (9/16/2025, 2:49:09 PM)
160.65
-0.51 (-0.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners68.07%
Inst Owner Change-0.82%
Ins Owners0.33%
Ins Owner Change1.17%
Market Cap260.71B
Analysts76.61
Price Target188.28 (17.2%)
Short Float %2.43%
Short Ratio0.7
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)-1.22%
Min EPS beat(2)-3.25%
Max EPS beat(2)0.8%
EPS beat(4)2
Avg EPS beat(4)-0.7%
Min EPS beat(4)-3.25%
Max EPS beat(4)0.8%
EPS beat(8)5
Avg EPS beat(8)0.01%
EPS beat(12)8
Avg EPS beat(12)0.42%
EPS beat(16)12
Avg EPS beat(16)3.54%
Revenue beat(2)2
Avg Revenue beat(2)2.95%
Min Revenue beat(2)2.55%
Max Revenue beat(2)3.35%
Revenue beat(4)4
Avg Revenue beat(4)1.82%
Min Revenue beat(4)0.63%
Max Revenue beat(4)3.35%
Revenue beat(8)6
Avg Revenue beat(8)1.01%
Revenue beat(12)7
Avg Revenue beat(12)0.58%
Revenue beat(16)10
Avg Revenue beat(16)1.32%
PT rev (1m)17.83%
PT rev (3m)43.97%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)2.92%
EPS NY rev (1m)0.56%
EPS NY rev (3m)-1.37%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)7.22%
Revenue NY rev (1m)2.86%
Revenue NY rev (3m)4.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.57 | ||
| Fwd PE | 26.85 | ||
| P/S | 8.81 | ||
| P/FCF | 64.48 | ||
| P/OCF | 53.46 | ||
| P/B | 4.37 | ||
| P/tB | 15.55 | ||
| EV/EBITDA | 46.82 |
EPS(TTM)3.45
EY2.15%
EPS(NY)5.98
Fwd EY3.73%
FCF(TTM)2.49
FCFY1.55%
OCF(TTM)3.01
OCFY1.87%
SpS18.24
BVpS36.77
TBVpS10.33
PEG (NY)2.46
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 4.75% | ||
| ROCE | 3.74% | ||
| ROIC | 3.02% | ||
| ROICexc | 3.32% | ||
| ROICexgc | 12.11% | ||
| OM | 8.2% | ||
| PM (TTM) | 9.57% | ||
| GM | 47.62% | ||
| FCFM | 13.66% |
ROA(3y)1.86%
ROA(5y)11.77%
ROE(3y)2.26%
ROE(5y)18.33%
ROIC(3y)1.56%
ROIC(5y)11.51%
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-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.8 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 27.16% | ||
| Cap/Sales | 2.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.69% | ||
| Profit Quality | 142.66% | ||
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z | 11.17 |
F-Score6
WACC11.31%
ROIC/WACC0.27
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)24.1%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%-30.43%
EPS Next Y18.92%
EPS Next 2Y34.26%
EPS Next 3Y31.88%
EPS Next 5Y26.28%
Revenue 1Y (TTM)27.17%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%31.71%
Revenue Next Year28.86%
Revenue Next 2Y25.07%
Revenue Next 3Y22.81%
Revenue Next 5Y18.71%
EBIT growth 1Y191.83%
EBIT growth 3Y-17.55%
EBIT growth 5Y28.98%
EBIT Next Year20.02%
EBIT Next 3Y29.97%
EBIT Next 5Y25.29%
FCF growth 1Y116.55%
FCF growth 3Y-9.27%
FCF growth 5Y54.18%
OCF growth 1Y103.46%
OCF growth 3Y-4.77%
OCF growth 5Y43.89%