GLOBALFOUNDRIES INC (GFS) Stock Fundamental Analysis
USA - NASDAQ:GFS - KYG393871085 - Common Stock
32.2 USD
+0.18 (+0.56%)
32.4 USD
+0.2 (+0.62%)
Overall GFS gets a fundamental rating of 4 out of 10. We evaluated GFS against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of GFS get a neutral evaluation. Nothing too spectacular is happening here. GFS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
GFS had positive earnings in the past year.
GFS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: GFS reported negative net income in multiple years.
GFS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GFS has a Return On Assets (-0.68%) which is comparable to the rest of the industry.
With a Return On Equity value of -1.01%, GFS perfoms like the industry average, outperforming 47.32% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.22%, GFS is doing good in the industry, outperforming 62.50% of the companies in the same industry.
GFS had an Average Return On Invested Capital over the past 3 years of 5.80%. This is significantly below the industry average of 10.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.68% | ||
| ROE | -1.01% | ||
| ROIC | 4.22% |
ROA(3y)4.06%
ROA(5y)-0.08%
ROE(3y)7.11%
ROE(5y)-0.12%
ROIC(3y)5.8%
ROIC(5y)N/A
1.3 Margins
GFS has a Operating Margin of 11.22%. This is in the better half of the industry: GFS outperforms 67.86% of its industry peers.
With a Gross Margin value of 23.77%, GFS is not doing good in the industry: 77.68% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of GFS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.22% | ||
| PM (TTM) | N/A | ||
| GM | 23.77% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y15.97%
GM growth 5YN/A
2. Health
2.1 Basic Checks
GFS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GFS has about the same amount of shares outstanding.
GFS has more shares outstanding than it did 5 years ago.
GFS has a better debt/assets ratio than last year.
2.2 Solvency
GFS has an Altman-Z score of 1.76. This is a bad value and indicates that GFS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.76, GFS is doing worse than 66.07% of the companies in the same industry.
The Debt to FCF ratio of GFS is 1.73, which is an excellent value as it means it would take GFS, only 1.73 years of fcf income to pay off all of its debts.
GFS has a better Debt to FCF ratio (1.73) than 70.54% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that GFS is not too dependend on debt financing.
GFS has a Debt to Equity ratio of 0.14. This is comparable to the rest of the industry: GFS outperforms 51.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.73 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.39
WACC10.73%
2.3 Liquidity
A Current Ratio of 2.63 indicates that GFS has no problem at all paying its short term obligations.
GFS has a Current ratio of 2.63. This is comparable to the rest of the industry: GFS outperforms 47.32% of its industry peers.
GFS has a Quick Ratio of 1.92. This is a normal value and indicates that GFS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of GFS (1.92) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
The earnings per share for GFS have decreased strongly by -13.30% in the last year.
The Revenue has decreased by -0.65% in the past year.
Measured over the past years, GFS shows a small growth in Revenue. The Revenue has been growing by 3.03% on average per year.
EPS 1Y (TTM)-13.3%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%10.53%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y0.83%
Revenue growth 5Y3.03%
Sales Q2Q%3.43%
3.2 Future
GFS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.17% yearly.
Based on estimates for the next years, GFS will show a quite strong growth in Revenue. The Revenue will grow by 9.56% on average per year.
EPS Next Y4.31%
EPS Next 2Y13.37%
EPS Next 3Y18.07%
EPS Next 5Y20.17%
Revenue Next Year0.12%
Revenue Next 2Y4.1%
Revenue Next 3Y6.2%
Revenue Next 5Y9.56%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
GFS is valuated rather expensively with a Price/Earnings ratio of 19.75.
83.93% of the companies in the same industry are more expensive than GFS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GFS to the average of the S&P500 Index (27.20), we can say GFS is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.06, which indicates a correct valuation of GFS.
GFS's Price/Forward Earnings ratio is rather cheap when compared to the industry. GFS is cheaper than 87.50% of the companies in the same industry.
GFS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 16.06 |
4.2 Price Multiples
95.54% of the companies in the same industry are more expensive than GFS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GFS is valued cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.38 | ||
| EV/EBITDA | 6.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as GFS's earnings are expected to grow with 18.07% in the coming years.
PEG (NY)4.58
PEG (5Y)N/A
EPS Next 2Y13.37%
EPS Next 3Y18.07%
5. Dividend
5.1 Amount
No dividends for GFS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
32.2
+0.18 (+0.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.25%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap17.87B
Analysts76
Price Target40.89 (26.99%)
Short Float %2.14%
Short Ratio5.11
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)2
Avg EPS beat(2)16.9%
Min EPS beat(2)16.57%
Max EPS beat(2)17.23%
EPS beat(4)4
Avg EPS beat(4)15.25%
Min EPS beat(4)2.49%
Max EPS beat(4)24.71%
EPS beat(8)8
Avg EPS beat(8)18.57%
EPS beat(12)12
Avg EPS beat(12)15.68%
EPS beat(16)16
Avg EPS beat(16)293.99%
Revenue beat(2)0
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)-0.35%
Revenue beat(4)0
Avg Revenue beat(4)-0.52%
Min Revenue beat(4)-0.92%
Max Revenue beat(4)-0.23%
Revenue beat(8)2
Avg Revenue beat(8)-0.37%
Revenue beat(12)4
Avg Revenue beat(12)-0.29%
Revenue beat(16)7
Avg Revenue beat(16)-0.13%
PT rev (1m)-9.7%
PT rev (3m)-7.78%
EPS NQ rev (1m)-4.57%
EPS NQ rev (3m)-8.41%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)0.6%
Revenue NQ rev (1m)-1.28%
Revenue NQ rev (3m)-5.52%
Revenue NY rev (1m)-2.53%
Revenue NY rev (3m)-2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 16.06 | ||
| P/S | 2.61 | ||
| P/FCF | 18.38 | ||
| P/OCF | 11.21 | ||
| P/B | 1.57 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 6.71 |
EPS(TTM)1.63
EY5.06%
EPS(NY)2.01
Fwd EY6.23%
FCF(TTM)1.75
FCFY5.44%
OCF(TTM)2.87
OCFY8.92%
SpS12.33
BVpS20.57
TBVpS19.27
PEG (NY)4.58
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.68% | ||
| ROE | -1.01% | ||
| ROCE | 5.34% | ||
| ROIC | 4.22% | ||
| ROICexc | 5.42% | ||
| ROICexgc | 5.79% | ||
| OM | 11.22% | ||
| PM (TTM) | N/A | ||
| GM | 23.77% | ||
| FCFM | 14.21% |
ROA(3y)4.06%
ROA(5y)-0.08%
ROE(3y)7.11%
ROE(5y)-0.12%
ROIC(3y)5.8%
ROIC(5y)N/A
ROICexc(3y)7.4%
ROICexc(5y)N/A
ROICexgc(3y)7.71%
ROICexgc(5y)N/A
ROCE(3y)7.34%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y15.97%
GM growth 5YN/A
F-Score5
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.73 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 42.57% | ||
| Cap/Sales | 9.09% | ||
| Interest Coverage | 9.04 | ||
| Cash Conversion | 71.51% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.63 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z | 1.76 |
F-Score5
WACC10.73%
ROIC/WACC0.39
Cap/Depr(3y)117.56%
Cap/Depr(5y)97.05%
Cap/Sales(3y)23.8%
Cap/Sales(5y)22.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.3%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%10.53%
EPS Next Y4.31%
EPS Next 2Y13.37%
EPS Next 3Y18.07%
EPS Next 5Y20.17%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y0.83%
Revenue growth 5Y3.03%
Sales Q2Q%3.43%
Revenue Next Year0.12%
Revenue Next 2Y4.1%
Revenue Next 3Y6.2%
Revenue Next 5Y9.56%
EBIT growth 1Y-16.34%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year169.45%
EBIT Next 3Y50.01%
EBIT Next 5Y31.63%
FCF growth 1Y247.05%
FCF growth 3Y0.75%
FCF growth 5YN/A
OCF growth 1Y-27.38%
OCF growth 3Y-15.35%
OCF growth 5Y28.22%