35.84 USD
+0.57 (+1.62%)
35.1 USD
-0.74 (-2.06%)
We assign a fundamental rating of 4 out of 10 to GFS. GFS was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. GFS has an average financial health and profitability rating. GFS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year GFS was profitable.
In the past year GFS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: GFS reported negative net income in multiple years.
Each year in the past 5 years GFS had a positive operating cash flow.
1.2 Ratios
GFS has a Return On Assets (-0.26%) which is comparable to the rest of the industry.
With a Return On Equity value of -0.38%, GFS perfoms like the industry average, outperforming 48.21% of the companies in the same industry.
GFS's Return On Invested Capital of 4.20% is fine compared to the rest of the industry. GFS outperforms 61.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GFS is below the industry average of 10.76%.
| 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
GFS's Operating Margin of 11.44% is fine compared to the rest of the industry. GFS outperforms 67.86% of its industry peers.
With a Gross Margin value of 24.02%, GFS is not doing good in the industry: 77.68% of the companies in the same industry are doing better.
GFS's Gross Margin has improved in the last couple of years.
| 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
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.
The number of shares outstanding for GFS has been increased compared to 5 years ago.
Compared to 1 year ago, GFS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.20 indicates that GFS is not a great score, but indicates only limited risk for bankruptcy at the moment.
GFS has a Altman-Z score of 2.20. This is in the lower half of the industry: GFS underperforms 64.29% of its industry peers.
The Debt to FCF ratio of GFS is 1.43, which is an excellent value as it means it would take GFS, only 1.43 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.43, GFS is doing good in the industry, outperforming 71.43% of the companies in the same industry.
GFS has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
GFS has a Debt to Equity ratio of 0.13. This is comparable to the rest of the industry: GFS outperforms 55.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.41
WACC10.12%
2.3 Liquidity
A Current Ratio of 3.03 indicates that GFS has no problem at all paying its short term obligations.
GFS's Current ratio of 3.03 is in line compared to the rest of the industry. GFS outperforms 51.79% of its industry peers.
GFS has a Quick Ratio of 2.24. This indicates that GFS is financially healthy and has no problem in meeting its short term obligations.
GFS's Quick ratio of 2.24 is in line compared to the rest of the industry. GFS outperforms 54.46% of its industry peers.
| 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%.
GFS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.25%.
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)-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
Based on estimates for the next years, GFS will show a very strong growth in Earnings Per Share. The EPS will grow by 20.17% on average per year.
The Revenue is expected to grow by 9.44% 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 5Y9.44%
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
The Price/Earnings ratio is 21.99, which indicates a rather expensive current valuation of GFS.
GFS's Price/Earnings ratio is rather cheap when compared to the industry. GFS is cheaper than 83.93% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, GFS is valued at the same level.
Based on the Price/Forward Earnings ratio of 18.12, the valuation of GFS can be described as rather expensive.
GFS's Price/Forward Earnings ratio is rather cheap when compared to the industry. GFS is cheaper than 83.93% of the companies in the same industry.
GFS is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 18.12 |
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.
91.07% 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 | 17.09 | ||
| EV/EBITDA | 7.84 |
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)5.39
PEG (5Y)N/A
EPS Next 2Y12.6%
EPS Next 3Y16.63%
5. Dividend
5.1 Amount
GFS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
35.84
+0.57 (+1.62%)
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 Cap19.92B
Revenue(TTM)6.79B
Net Income(TTM)-44.00M
Analysts73.85
Price Target40.09 (11.86%)
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)-1.18%
PT rev (3m)-3.35%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 18.12 | ||
| P/S | 2.93 | ||
| P/FCF | 17.09 | ||
| P/OCF | 10.98 | ||
| P/B | 1.7 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 7.84 |
EPS(TTM)1.63
EY4.55%
EPS(NY)1.98
Fwd EY5.52%
FCF(TTM)2.1
FCFY5.85%
OCF(TTM)3.26
OCFY9.11%
SpS12.22
BVpS21.08
TBVpS19.39
PEG (NY)5.39
PEG (5Y)N/A
Graham Number27.8
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 | 2.2 |
F-Score6
WACC10.12%
ROIC/WACC0.41
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 5Y9.44%
EBIT growth 1Y-5.93%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year162.87%
EBIT Next 3Y49.92%
EBIT Next 5Y31.62%
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 4 / 10 to GFS.
What is the valuation status of GLOBALFOUNDRIES INC (GFS) stock?
ChartMill assigns a valuation rating of 5 / 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 21.99 and the Price/Book (PB) ratio is 1.7.
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.