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 109 industry peers in the Semiconductors & Semiconductor Equipment industry. AMD is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. AMD is growing strongly while it is still valued neutral. This is a good combination! With these ratings, AMD could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year AMD was profitable.
In the past year AMD had a positive cash flow from operations.
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 has a Return On Assets (2.37%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 2.85%, AMD is in line with its industry, outperforming 53.21% of the companies in the same industry.
AMD has a Return On Invested Capital (2.66%) 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 11.29%.
The last Return On Invested Capital (2.66%) for AMD is above the 3 year average (1.56%), which is a sign of increasing profitability.
| 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's Profit Margin of 6.36% is in line compared to the rest of the industry. AMD outperforms 58.72% of its industry peers.
AMD's Profit Margin has improved in the last couple of years.
AMD has a Operating Margin of 7.90%. This is in the better half of the industry: AMD outperforms 61.47% of its industry peers.
AMD's Operating Margin has been stable in the last couple of years.
AMD has a Gross Margin of 49.35%. This is in the better half of the industry: AMD outperforms 61.47% of its industry peers.
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.
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 8.74 indicates that AMD is not in any danger for bankruptcy at the moment.
AMD's Altman-Z score of 8.74 is amongst the best of the industry. AMD outperforms 80.73% of its industry peers.
AMD has a debt to FCF ratio of 0.72. This is a very positive value and a sign of high solvency as it would only need 0.72 years to pay back of all of its debts.
The Debt to FCF ratio of AMD (0.72) is better than 80.73% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that AMD is not too dependend on debt financing.
AMD has a Debt to Equity ratio of 0.03. This is in the better half of the industry: AMD outperforms 60.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.72 | ||
| Altman-Z | 8.74 |
ROIC/WACC0.28
WACC9.44%
2.3 Liquidity
AMD has a Current Ratio of 2.62. This indicates that AMD is financially healthy and has no problem in meeting its short term obligations.
AMD has a Current ratio of 2.62. This is comparable to the rest of the industry: AMD outperforms 41.28% of its industry peers.
A Quick Ratio of 1.83 indicates that AMD should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.83, AMD is not doing good in the industry: 63.30% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
AMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.28%, 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.
Looking at the last year, AMD shows a quite strong growth in Revenue. The Revenue has grown by 13.69% in the last year.
The Revenue has been growing by 30.81% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 27.14% on average over the next years. This is a very strong growth
Based on estimates for the next years, AMD will show a quite strong growth in Revenue. The Revenue will grow by 16.77% on average per year.
EPS Next Y37.18%
EPS Next 2Y34.85%
EPS Next 3Y29.14%
EPS Next 5Y27.14%
Revenue Next Year21.85%
Revenue Next 2Y20.98%
Revenue Next 3Y18.78%
Revenue Next 5Y16.77%
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 29.03, AMD can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of AMD indicates a somewhat cheap valuation: AMD is cheaper than 60.55% of the companies listed in the same industry.
AMD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.87.
With a Price/Forward Earnings ratio of 21.16, AMD is valued on the expensive side.
Based on the Price/Forward Earnings ratio, AMD is valued a bit cheaper than the industry average as 64.22% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, AMD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.03 | ||
| Fwd PE | 21.16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AMD.
AMD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.78 | ||
| EV/EBITDA | 28.96 |
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 29.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)0.74
EPS Next 2Y34.85%
EPS Next 3Y29.14%
5. Dividend
5.1 Amount
AMD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
96.39
-0.25 (-0.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.95%
Inst Owner Change0.16%
Ins Owners0.33%
Ins Owner Change0.19%
Market Cap155.80B
Analysts75.56
Price Target141.37 (46.66%)
Short Float %2.77%
Short Ratio1.13
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)-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)-6.65%
PT rev (3m)-23.94%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)-3.41%
EPS NY rev (1m)-2.2%
EPS NY rev (3m)-10.96%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)-1.38%
Revenue NY rev (3m)-2.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.03 | ||
| Fwd PE | 21.16 | ||
| P/S | 6.04 | ||
| P/FCF | 64.78 | ||
| P/OCF | 51.23 | ||
| P/B | 2.71 | ||
| P/tB | 11.29 | ||
| EV/EBITDA | 28.96 |
EPS(TTM)3.32
EY3.44%
EPS(NY)4.55
Fwd EY4.73%
FCF(TTM)1.49
FCFY1.54%
OCF(TTM)1.88
OCFY1.95%
SpS15.95
BVpS35.62
TBVpS8.54
PEG (NY)0.78
PEG (5Y)0.74
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 | 8.74 |
F-Score9
WACC9.44%
ROIC/WACC0.28
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 Y37.18%
EPS Next 2Y34.85%
EPS Next 3Y29.14%
EPS Next 5Y27.14%
Revenue 1Y (TTM)13.69%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%24.16%
Revenue Next Year21.85%
Revenue Next 2Y20.98%
Revenue Next 3Y18.78%
Revenue Next 5Y16.77%
EBIT growth 1Y455.31%
EBIT growth 3Y-17.55%
EBIT growth 5Y28.98%
EBIT Next Year36.57%
EBIT Next 3Y32.91%
EBIT Next 5Y26.02%
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%