ADVANCED MICRO DEVICES (AMD) Stock Fundamental Analysis
USA - NASDAQ:AMD - US0079031078 - Common Stock
246.81 USD
-1.15 (-0.46%)
248.47 USD
+1.66 (+0.67%)
Overall AMD gets a fundamental rating of 6 out of 10. We evaluated AMD against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. AMD has an excellent profitability rating, but there are some minor concerns on its financial health. AMD is valued quite expensive, but it does show an excellent growth. This makes AMD very considerable for growth investing!
1. Profitability
1.1 Basic Checks
AMD had positive earnings in the past year.
In the past year AMD had a positive cash flow from operations.
AMD had positive earnings in each of the past 5 years.
In the past 5 years AMD always reported a positive cash flow from operatings.
1.2 Ratios
AMD has a Return On Assets of 4.30%. This is in the better half of the industry: AMD outperforms 67.86% of its industry peers.
The Return On Equity of AMD (5.44%) is better than 62.50% of its industry peers.
With a Return On Invested Capital value of 3.71%, AMD perfoms like the industry average, outperforming 58.93% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AMD is significantly below the industry average of 10.93%.
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 Profit Margin of 10.32%. This is in the better half of the industry: AMD outperforms 69.64% of its industry peers.
AMD's Profit Margin has improved in the last couple of years.
AMD has a Operating Margin of 9.33%. This is in the better half of the industry: AMD outperforms 62.50% of its industry peers.
AMD's Operating Margin has been stable in the last couple of years.
AMD has a Gross Margin (48.26%) which is comparable to the rest of the industry.
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%
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
Compared to 1 year ago, AMD has an improved debt to assets ratio.
2.2 Solvency
AMD has an Altman-Z score of 15.87. This indicates that AMD is financially healthy and has little risk of bankruptcy at the moment.
AMD has a Altman-Z score of 15.87. This is amongst the best in the industry. AMD outperforms 86.61% of its industry peers.
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 79.46% 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 has a Debt to Equity ratio of 0.04. This is in the better half of the industry: AMD outperforms 63.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 15.87 |
ROIC/WACC0.35
WACC10.73%
2.3 Liquidity
A Current Ratio of 2.31 indicates that AMD has no problem at all paying its short term obligations.
The Current ratio of AMD (2.31) is worse than 65.18% 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.
AMD has a Quick ratio of 1.68. This is in the lower half of the industry: AMD underperforms 66.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.33% over the past year.
Measured over the past years, AMD shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.99% on average per year.
AMD shows a strong growth in Revenue. In the last year, 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 28.88% yearly.
The Revenue is expected to grow by 22.77% on average over the next years. This is a very strong growth
EPS Next Y18.93%
EPS Next 2Y38.26%
EPS Next 3Y42.79%
EPS Next 5Y28.88%
Revenue Next Year29.04%
Revenue Next 2Y28.15%
Revenue Next 3Y31.16%
Revenue Next 5Y22.77%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
Based on the Price/Earnings ratio of 66.17, the valuation of AMD can be described as expensive.
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 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 38.89 indicates a quite expensive valuation of AMD.
The rest of the industry has a similar Price/Forward Earnings ratio as AMD.
The average S&P500 Price/Forward Earnings ratio is at 34.59. AMD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.17 | ||
| Fwd PE | 38.89 |
4.2 Price Multiples
AMD's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as AMD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 73.52 | ||
| EV/EBITDA | 66.03 |
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.
AMD's earnings are expected to grow with 42.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.49
PEG (5Y)1.7
EPS Next 2Y38.26%
EPS Next 3Y42.79%
5. Dividend
5.1 Amount
No dividends for AMD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
246.81
-1.15 (-0.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.37%
Inst Owner Change-0.73%
Ins Owners0.34%
Ins Owner Change1.06%
Market Cap400.53B
Revenue(TTM)32.03B
Net Income(TTM)3.31B
Analysts79.32
Price Target245.38 (-0.58%)
Short Float %2.41%
Short Ratio0.66
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)-0.56%
Min EPS beat(2)-3.25%
Max EPS beat(2)2.13%
EPS beat(4)3
Avg EPS beat(4)-0.05%
Min EPS beat(4)-3.25%
Max EPS beat(4)2.13%
EPS beat(8)5
Avg EPS beat(8)-0.03%
EPS beat(12)9
Avg EPS beat(12)0.85%
EPS beat(16)12
Avg EPS beat(16)3.18%
Revenue beat(2)2
Avg Revenue beat(2)3.62%
Min Revenue beat(2)2.55%
Max Revenue beat(2)4.69%
Revenue beat(4)4
Avg Revenue beat(4)2.83%
Min Revenue beat(4)0.75%
Max Revenue beat(4)4.69%
Revenue beat(8)6
Avg Revenue beat(8)1.5%
Revenue beat(12)8
Avg Revenue beat(12)1.13%
Revenue beat(16)10
Avg Revenue beat(16)1.38%
PT rev (1m)30.33%
PT rev (3m)53.57%
EPS NQ rev (1m)1.68%
EPS NQ rev (3m)1.04%
EPS NY rev (1m)0.18%
EPS NY rev (3m)0.57%
Revenue NQ rev (1m)5.48%
Revenue NQ rev (3m)9.38%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.17 | ||
| Fwd PE | 38.89 | ||
| P/S | 12.51 | ||
| P/FCF | 73.52 | ||
| P/OCF | 62.51 | ||
| P/B | 6.59 | ||
| P/tB | 21.7 | ||
| EV/EBITDA | 66.03 |
EPS(TTM)3.73
EY1.51%
EPS(NY)6.35
Fwd EY2.57%
FCF(TTM)3.36
FCFY1.36%
OCF(TTM)3.95
OCFY1.6%
SpS19.74
BVpS37.46
TBVpS11.37
PEG (NY)3.49
PEG (5Y)1.7
Graham Number56.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.3% | ||
| ROE | 5.44% | ||
| ROCE | 4.58% | ||
| ROIC | 3.71% | ||
| ROICexc | 4.17% | ||
| ROICexgc | 15.47% | ||
| OM | 9.33% | ||
| PM (TTM) | 10.32% | ||
| GM | 48.26% | ||
| FCFM | 17.01% |
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%
ROICexgc growth 3Y-44.61%
ROICexgc 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-Score5
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.59 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 31.91% | ||
| Cap/Sales | 3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 106.87% | ||
| Profit Quality | 164.79% | ||
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 15.87 |
F-Score5
WACC10.73%
ROIC/WACC0.35
Cap/Depr(3y)15.78%
Cap/Depr(5y)43.11%
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)24.33%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%30.43%
EPS Next Y18.93%
EPS Next 2Y38.26%
EPS Next 3Y42.79%
EPS Next 5Y28.88%
Revenue 1Y (TTM)31.83%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%35.59%
Revenue Next Year29.04%
Revenue Next 2Y28.15%
Revenue Next 3Y31.16%
Revenue Next 5Y22.77%
EBIT growth 1Y125%
EBIT growth 3Y-17.55%
EBIT growth 5Y28.98%
EBIT Next Year15.36%
EBIT Next 3Y26.98%
EBIT Next 5Y32.7%
FCF growth 1Y312.1%
FCF growth 3Y-9.27%
FCF growth 5Y54.18%
OCF growth 1Y245.82%
OCF growth 3Y-4.77%
OCF growth 5Y43.89%
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.
What is the valuation status for AMD stock?
ChartMill assigns a valuation rating of 3 / 10 to ADVANCED MICRO DEVICES (AMD). This can be considered as Overvalued.
Can you provide the profitability details for ADVANCED MICRO DEVICES?
ADVANCED MICRO DEVICES (AMD) has a profitability rating of 7 / 10.
How financially healthy is ADVANCED MICRO DEVICES?
The financial health rating of ADVANCED MICRO DEVICES (AMD) is 6 / 10.
What is the earnings growth outlook for ADVANCED MICRO DEVICES?
The Earnings per Share (EPS) of ADVANCED MICRO DEVICES (AMD) is expected to grow by 18.93% in the next year.