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GLOBALFOUNDRIES INC (GFS) Stock Fundamental Analysis

NASDAQ:GFS - Nasdaq - KYG393871085 - Common Stock - Currency: USD

42.82  -0.73 (-1.68%)

After market: 42.82 0 (0%)

Fundamental Rating

4

GFS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 108 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 valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year GFS was profitable.
GFS had a positive operating cash flow in the past year.
In multiple years GFS reported negative net income over the last 5 years.
GFS had a positive operating cash flow in 4 of the past 5 years.
GFS Yearly Net Income VS EBIT VS OCF VS FCFGFS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 0 1B -1B 2B -2B

1.2 Ratios

Looking at the Return On Assets, with a value of 4.10%, GFS is in the better half of the industry, outperforming 62.04% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.43%, GFS is in line with its industry, outperforming 57.41% of the companies in the same industry.
The Return On Invested Capital of GFS (4.24%) is better than 62.96% of its industry peers.
Industry RankSector Rank
ROA 4.1%
ROE 6.43%
ROIC 4.24%
ROA(3y)4.03%
ROA(5y)-1.66%
ROE(3y)6.88%
ROE(5y)-2.67%
ROIC(3y)N/A
ROIC(5y)N/A
GFS Yearly ROA, ROE, ROICGFS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 0 10 -10

1.3 Margins

GFS has a better Profit Margin (10.95%) than 63.89% of its industry peers.
GFS has a better Operating Margin (12.19%) than 67.59% of its industry peers.
With a Gross Margin value of 25.49%, GFS is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
Industry RankSector Rank
OM 12.19%
PM (TTM) 10.95%
GM 25.49%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
GFS Yearly Profit, Operating, Gross MarginsGFS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 20 -20 -40

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4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GFS is destroying value.
There is no outstanding debt for GFS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
GFS Yearly Shares OutstandingGFS Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M
GFS Yearly Total Debt VS Total AssetsGFS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 5B 10B 15B

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 62.04% of its industry peers.
The Debt to FCF ratio of GFS is 2.31, which is a good value as it means it would take GFS, 2.31 years of fcf income to pay off all of its debts.
GFS has a Debt to FCF ratio of 2.31. This is in the better half of the industry: GFS outperforms 72.22% of its industry peers.
GFS has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.19, GFS perfoms like the industry average, outperforming 46.30% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 2.31
Altman-Z 2.01
ROIC/WACC0.37
WACC11.54%
GFS Yearly LT Debt VS Equity VS FCFGFS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 0 2B 4B 6B 8B 10B

2.3 Liquidity

GFS has a Current Ratio of 2.42. This indicates that GFS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.42, GFS is doing worse than 60.19% of the companies in the same industry.
GFS has a Quick Ratio of 1.76. This is a normal value and indicates that GFS is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.76, GFS is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 2.42
Quick Ratio 1.76
GFS Yearly Current Assets VS Current LiabilitesGFS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2B 4B 6B

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3

3. Growth

3.1 Past

The earnings per share for GFS have decreased strongly by -30.36% in the last year.
EPS 1Y (TTM)-30.36%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-28.12%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.29%

3.2 Future

GFS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.57% yearly.
GFS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.82% yearly.
EPS Next Y11.8%
EPS Next 2Y23.37%
EPS Next 3Y23.13%
EPS Next 5Y25.57%
Revenue Next Year8.66%
Revenue Next 2Y9.79%
Revenue Next 3Y10.64%
Revenue Next 5Y10.82%

3.3 Evolution

GFS Yearly Revenue VS EstimatesGFS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B 8B 10B
GFS Yearly EPS VS EstimatesGFS Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 1 2 3

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 27.45 indicates a quite expensive valuation of GFS.
GFS's Price/Earnings ratio is a bit cheaper when compared to the industry. GFS is cheaper than 72.22% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.99, GFS is valued at the same level.
With a Price/Forward Earnings ratio of 24.55, GFS is valued on the expensive side.
Based on the Price/Forward Earnings ratio, GFS is valued a bit cheaper than the industry average as 67.59% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 96.58. GFS is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 27.45
Fwd PE 24.55
GFS Price Earnings VS Forward Price EarningsGFS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

87.96% of the companies in the same industry are more expensive than GFS, based on the Enterprise Value to EBITDA ratio.
88.89% of the companies in the same industry are more expensive than GFS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 19.22
EV/EBITDA 9.16
GFS Per share dataGFS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

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.
A more expensive valuation may be justified as GFS's earnings are expected to grow with 23.13% in the coming years.
PEG (NY)2.33
PEG (5Y)N/A
EPS Next 2Y23.37%
EPS Next 3Y23.13%

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0

5. Dividend

5.1 Amount

No dividends for GFS!.
Industry RankSector Rank
Dividend Yield N/A

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GLOBALFOUNDRIES INC

NASDAQ:GFS (2/13/2025, 4:05:59 PM)

After market: 42.82 0 (0%)

42.82

-0.73 (-1.68%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-11 2025-02-11/bmo
Earnings (Next)N/A N/A
Inst Owners105.79%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap23.66B
Analysts73.91
Price Target49.97 (16.7%)
Short Float %2.4%
Short Ratio8.65
Dividend
Industry RankSector 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)29.05%
Min EPS beat(2)24.71%
Max EPS beat(2)33.38%
EPS beat(4)4
Avg EPS beat(4)25.54%
Min EPS beat(4)9.64%
Max EPS beat(4)34.41%
EPS beat(8)8
Avg EPS beat(8)18.07%
EPS beat(12)12
Avg EPS beat(12)27.07%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-0.23%
Max Revenue beat(2)0.06%
Revenue beat(4)2
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-0.8%
Max Revenue beat(4)0.72%
Revenue beat(8)3
Avg Revenue beat(8)-0.22%
Revenue beat(12)7
Avg Revenue beat(12)0.06%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.6%
PT rev (3m)-9.27%
EPS NQ rev (1m)5.42%
EPS NQ rev (3m)9.99%
EPS NY rev (1m)0%
EPS NY rev (3m)5.27%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.18%
Valuation
Industry RankSector Rank
PE 27.45
Fwd PE 24.55
P/S 3.49
P/FCF 19.22
P/OCF 12.14
P/B 2.05
P/tB 2.16
EV/EBITDA 9.16
EPS(TTM)1.56
EY3.64%
EPS(NY)1.74
Fwd EY4.07%
FCF(TTM)2.23
FCFY5.2%
OCF(TTM)3.53
OCFY8.24%
SpS12.26
BVpS20.87
TBVpS19.87
PEG (NY)2.33
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.1%
ROE 6.43%
ROCE 5.37%
ROIC 4.24%
ROICexc 5.51%
ROICexgc 5.77%
OM 12.19%
PM (TTM) 10.95%
GM 25.49%
FCFM 18.17%
ROA(3y)4.03%
ROA(5y)-1.66%
ROE(3y)6.88%
ROE(5y)-2.67%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
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 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 2.31
Debt/EBITDA 0.92
Cap/Depr 45.1%
Cap/Sales 10.6%
Interest Coverage 250
Cash Conversion 80.6%
Profit Quality 165.9%
Current Ratio 2.42
Quick Ratio 1.76
Altman-Z 2.01
F-Score6
WACC11.54%
ROIC/WACC0.37
Cap/Depr(3y)140.64%
Cap/Depr(5y)94.85%
Cap/Sales(3y)29.65%
Cap/Sales(5y)22.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-30.36%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-28.12%
EPS Next Y11.8%
EPS Next 2Y23.37%
EPS Next 3Y23.13%
EPS Next 5Y25.57%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.29%
Revenue Next Year8.66%
Revenue Next 2Y9.79%
Revenue Next 3Y10.64%
Revenue Next 5Y10.82%
EBIT growth 1Y-33.87%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year90.47%
EBIT Next 3Y32.78%
EBIT Next 5Y25.18%
FCF growth 1Y148.44%
FCF growth 3Y-8.09%
FCF growth 5YN/A
OCF growth 1Y-40.6%
OCF growth 3Y28.31%
OCF growth 5Y50.06%