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 growing strongly while it is still valued neutral. This is a good combination! These ratings could make AMD a good candidate for growth investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
AMD had positive earnings in each of the past 5 years.
AMD had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

AMD has a better Return On Assets (4.30%) than 66.37% of its industry peers.
The Return On Equity of AMD (5.44%) is better than 60.18% of its industry peers.
AMD has a Return On Invested Capital (3.71%) which is in line with its industry peers.
AMD had an Average Return On Invested Capital over the past 3 years of 1.56%. This is significantly below the industry average of 10.85%.
The last Return On Invested Capital (3.71%) for AMD is above the 3 year average (1.56%), which is a sign of increasing profitability.

		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

Looking at the Profit Margin, with a value of 10.32%, AMD is in the better half of the industry, outperforming 66.37% of the companies in the same industry.
AMD's Profit Margin has improved in the last couple of years.
The Operating Margin of AMD (9.33%) is better than 61.06% of its industry peers.
AMD's Operating Margin has been stable in the last couple of years.
AMD has a Gross Margin of 48.26%. This is comparable to the rest of the industry: AMD outperforms 58.41% of its industry peers.
AMD's Gross Margin has improved in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

AMD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AMD has been increased compared to 1 year ago.
Compared to 5 years ago, AMD has more shares outstanding
Compared to 1 year ago, AMD has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 15.24 indicates that AMD is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 15.24, AMD belongs to the best of the industry, outperforming 82.30% of the companies in the same industry.
The Debt to FCF ratio of AMD is 0.59, which is an excellent value as it means it would take AMD, only 0.59 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.59, AMD is in the better half of the industry, outperforming 79.65% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that AMD is not too dependend on debt financing.
AMD has a Debt to Equity ratio of 0.04. This is in the better half 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	15.24

ROIC/WACC0.34

WACC10.94%

2.3 Liquidity

AMD has a Current Ratio of 2.31. This indicates that AMD is financially healthy and has no problem in meeting its short term obligations.
AMD has a Current ratio of 2.31. This is in the lower half of the industry: AMD underperforms 65.49% of its industry peers.
AMD has a Quick Ratio of 1.68. This is a normal value and indicates that AMD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.68, AMD is doing worse than 66.37% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.31
Quick Ratio	1.68

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WACC

Debt/Equity

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Altman-Z score

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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.
Looking at the last year, AMD shows a very strong growth in Revenue. The Revenue has grown by 31.83%.
AMD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.81% yearly.

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

AMD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.31% yearly.
Based on estimates for the next years, AMD will show a very strong growth in Revenue. The Revenue will grow by 34.18% on average per year.

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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 63.47, the valuation of AMD can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AMD is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.32. AMD is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 35.68, which means the current valuation is very expensive for AMD.
Based on the Price/Forward Earnings ratio, AMD is valued a bit cheaper than the industry average as 61.06% of the companies are valued more expensively.
AMD's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	63.47
Fwd PE	35.68

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.
61.95% 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	70.74
EV/EBITDA	63.2

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.