GLOBALFOUNDRIES INC (GFS) Stock Fundamental Analysis
USA - NASDAQ:GFS - KYG393871085 - Common Stock
32.24 USD
-0.7 (-2.13%)
32.1114 USD
-0.13 (-0.4%)
We assign a fundamental rating of 5 out of 10 to GFS. GFS was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. GFS has only an average score on both its financial health and profitability. GFS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
GFS had positive earnings in the past year.
In the past year GFS had a positive cash flow from operations.
In multiple years GFS reported negative net income over the last 5 years.
GFS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -0.26%, GFS perfoms like the industry average, outperforming 47.32% of the companies in the same industry.
The Return On Equity of GFS (-0.38%) is comparable to the rest of the industry.
The Return On Invested Capital of GFS (4.20%) is better than 61.61% of its industry peers.
GFS had an Average Return On Invested Capital over the past 3 years of 5.80%. This is significantly below the industry average of 10.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.26% | ||
| ROE | -0.38% | ||
| ROIC | 4.2% |
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
Looking at the Operating Margin, with a value of 11.44%, GFS is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
GFS's Gross Margin of 24.02% is on the low side compared to the rest of the industry. GFS is outperformed by 77.68% of its industry peers.
In the last couple of years the Gross Margin of GFS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.44% | ||
| PM (TTM) | N/A | ||
| GM | 24.02% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GFS 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.
The debt/assets ratio for GFS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.01 indicates that GFS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GFS (2.01) is worse than 62.50% of its industry peers.
GFS has a debt to FCF ratio of 1.43. This is a very positive value and a sign of high solvency as it would only need 1.43 years to pay back of all of its debts.
GFS has a Debt to FCF ratio of 1.43. This is in the better half of the industry: GFS outperforms 71.43% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that GFS is not too dependend on debt financing.
GFS has a Debt to Equity ratio (0.13) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.42
WACC10.11%
2.3 Liquidity
A Current Ratio of 3.03 indicates that GFS has no problem at all paying its short term obligations.
GFS has a Current ratio of 3.03. This is comparable to the rest of the industry: GFS outperforms 54.46% of its industry peers.
A Quick Ratio of 2.24 indicates that GFS has no problem at all paying its short term obligations.
GFS has a Quick ratio (2.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.03 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
GFS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.32%.
The Revenue has been growing slightly by 0.25% in the past year.
The Revenue has been growing slightly by 3.03% on average over the past years.
EPS 1Y (TTM)-6.32%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)0.25%
Revenue growth 3Y0.83%
Revenue growth 5Y3.03%
Sales Q2Q%-2.93%
3.2 Future
The Earnings Per Share is expected to grow by 20.17% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.19% on average over the next years. This is quite good.
EPS Next Y4.08%
EPS Next 2Y12.6%
EPS Next 3Y16.63%
EPS Next 5Y20.17%
Revenue Next Year0.09%
Revenue Next 2Y4.04%
Revenue Next 3Y6.05%
Revenue Next 5Y8.19%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GFS is valuated rather expensively with a Price/Earnings ratio of 19.78.
Compared to the rest of the industry, the Price/Earnings ratio of GFS indicates a rather cheap valuation: GFS is cheaper than 83.04% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.07, GFS is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.30, which indicates a correct valuation of GFS.
83.93% of the companies in the same industry are more expensive than GFS, based on the Price/Forward Earnings ratio.
GFS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.78 | ||
| Fwd PE | 16.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GFS indicates a rather cheap valuation: GFS is cheaper than 95.54% of the companies listed in the same industry.
90.18% of the companies in the same industry are more expensive than GFS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.36 | ||
| EV/EBITDA | 7.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GFS does not grow enough to justify the current Price/Earnings ratio.
GFS's earnings are expected to grow with 16.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.85
PEG (5Y)N/A
EPS Next 2Y12.6%
EPS Next 3Y16.63%
5. Dividend
5.1 Amount
No dividends for GFS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
32.24
-0.7 (-2.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.78%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap17.89B
Revenue(TTM)6.79B
Net Income(TTM)-44.00M
Analysts73.85
Price Target40.09 (24.35%)
Short Float %2.57%
Short Ratio4.14
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)12.95%
Min EPS beat(2)8.67%
Max EPS beat(2)17.23%
EPS beat(4)4
Avg EPS beat(4)11.24%
Min EPS beat(4)2.49%
Max EPS beat(4)17.23%
EPS beat(8)8
Avg EPS beat(8)18.39%
EPS beat(12)12
Avg EPS beat(12)15.79%
EPS beat(16)16
Avg EPS beat(16)23.11%
Revenue beat(2)0
Avg Revenue beat(2)-0.32%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)-0.3%
Revenue beat(4)0
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-0.92%
Max Revenue beat(4)-0.3%
Revenue beat(8)2
Avg Revenue beat(8)-0.3%
Revenue beat(12)3
Avg Revenue beat(12)-0.32%
Revenue beat(16)7
Avg Revenue beat(16)-0.09%
PT rev (1m)0.66%
PT rev (3m)-9.82%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)0.32%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-2.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.78 | ||
| Fwd PE | 16.3 | ||
| P/S | 2.63 | ||
| P/FCF | 15.36 | ||
| P/OCF | 9.86 | ||
| P/B | 1.53 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 7.08 |
EPS(TTM)1.63
EY5.06%
EPS(NY)1.98
Fwd EY6.13%
FCF(TTM)2.1
FCFY6.51%
OCF(TTM)3.27
OCFY10.14%
SpS12.24
BVpS21.1
TBVpS19.41
PEG (NY)4.85
PEG (5Y)N/A
Graham Number27.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.26% | ||
| ROE | -0.38% | ||
| ROCE | 5.31% | ||
| ROIC | 4.2% | ||
| ROICexc | 5.45% | ||
| ROICexgc | 5.94% | ||
| OM | 11.44% | ||
| PM (TTM) | N/A | ||
| GM | 24.02% | ||
| FCFM | 17.16% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score6
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.43 | ||
| Debt/EBITDA | 0.71 | ||
| Cap/Depr | 47.06% | ||
| Cap/Sales | 9.56% | ||
| Interest Coverage | 10.22 | ||
| Cash Conversion | 84.14% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.03 | ||
| Quick Ratio | 2.24 | ||
| Altman-Z | 2.01 |
F-Score6
WACC10.11%
ROIC/WACC0.42
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)-6.32%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y4.08%
EPS Next 2Y12.6%
EPS Next 3Y16.63%
EPS Next 5Y20.17%
Revenue 1Y (TTM)0.25%
Revenue growth 3Y0.83%
Revenue growth 5Y3.03%
Sales Q2Q%-2.93%
Revenue Next Year0.09%
Revenue Next 2Y4.04%
Revenue Next 3Y6.05%
Revenue Next 5Y8.19%
EBIT growth 1Y-5.93%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year162.87%
EBIT Next 3Y49.92%
EBIT Next 5Y31.63%
FCF growth 1Y283.46%
FCF growth 3Y0.75%
FCF growth 5YN/A
OCF growth 1Y-6.11%
OCF growth 3Y-15.35%
OCF growth 5Y28.22%
GLOBALFOUNDRIES INC / GFS FAQ
What is the ChartMill fundamental rating of GLOBALFOUNDRIES INC (GFS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to GFS.
What is the valuation status of GLOBALFOUNDRIES INC (GFS) stock?
ChartMill assigns a valuation rating of 6 / 10 to GLOBALFOUNDRIES INC (GFS). This can be considered as Fairly Valued.
What is the profitability of GFS stock?
GLOBALFOUNDRIES INC (GFS) has a profitability rating of 4 / 10.
What is the valuation of GLOBALFOUNDRIES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GLOBALFOUNDRIES INC (GFS) is 19.78 and the Price/Book (PB) ratio is 1.53.
What is the earnings growth outlook for GLOBALFOUNDRIES INC?
The Earnings per Share (EPS) of GLOBALFOUNDRIES INC (GFS) is expected to grow by 4.08% in the next year.