GLOBALFOUNDRIES INC (GFS) Stock Fundamental Analysis
USA - NASDAQ:GFS - KYG393871085 - Common Stock
34.42 USD
-1.24 (-3.48%)
34.15 USD
-0.27 (-0.78%)
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 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.
The reported net income has been mixed in the past 5 years: GFS reported negative net income in multiple years.
In the past 5 years GFS always reported a positive cash flow from operatings.
1.2 Ratios
GFS has a Return On Assets (-0.68%) which is in line with its industry peers.
With a Return On Equity value of -1.01%, GFS perfoms like the industry average, outperforming 45.54% 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.
The Average Return On Invested Capital over the past 3 years for GFS is significantly below the industry average of 11.04%.
| 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
The Operating Margin of GFS (11.22%) is better than 67.86% of its industry peers.
GFS has a Gross Margin of 23.77%. This is in the lower half of the industry: GFS underperforms 77.68% of its industry peers.
GFS's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for GFS has been increased compared to 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 1.97 indicates that GFS is not a great score, but indicates only limited risk for bankruptcy at the moment.
GFS has a worse Altman-Z score (1.97) than 66.96% of its industry peers.
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.
With a decent Debt to FCF ratio value of 1.73, GFS is doing good in the industry, outperforming 69.64% of the companies in the same industry.
GFS has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
GFS's Debt to Equity ratio of 0.14 is in line compared to the rest of the industry. GFS outperforms 52.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.73 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.38
WACC11.24%
2.3 Liquidity
GFS has a Current Ratio of 2.63. This indicates that GFS is financially healthy and has no problem in meeting its short term obligations.
GFS's Current ratio of 2.63 is in line compared to the rest of the industry. GFS outperforms 47.32% of its industry peers.
A Quick Ratio of 1.92 indicates that GFS should not have too much problems paying its short term obligations.
GFS has a Quick ratio (1.92) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
GFS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.30%.
GFS shows a decrease in Revenue. In the last year, the revenue decreased by -0.65%.
The Revenue has been growing slightly by 3.03% on average over the past years.
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 Y4.55%
EPS Next 2Y13.11%
EPS Next 3Y17.21%
EPS Next 5Y20.17%
Revenue Next Year0.07%
Revenue Next 2Y4.1%
Revenue Next 3Y6.2%
Revenue Next 5Y9.56%
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 21.12.
Compared to the rest of the industry, the Price/Earnings ratio of GFS indicates a rather cheap valuation: GFS is cheaper than 84.82% of the companies listed in the same industry.
GFS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.25 indicates a rather expensive valuation of GFS.
Based on the Price/Forward Earnings ratio, GFS is valued cheaply inside the industry as 86.61% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.27. GFS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 17.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GFS is valued cheaper than 96.43% of the companies in the same industry.
86.61% 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 | 19.65 | ||
| EV/EBITDA | 7.57 |
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 17.21% in the coming years.
PEG (NY)4.64
PEG (5Y)N/A
EPS Next 2Y13.11%
EPS Next 3Y17.21%
5. Dividend
5.1 Amount
GFS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.42
-1.24 (-3.48%)
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 Cap19.10B
Revenue(TTM)6.84B
Net Income(TTM)-115000000
Analysts76
Price Target40.84 (18.65%)
Short Float %2.49%
Short Ratio4.63
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)-0.14%
PT rev (3m)-9.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.16%
EPS NY rev (1m)0.27%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.41%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-2.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 17.25 | ||
| P/S | 2.79 | ||
| P/FCF | 19.65 | ||
| P/OCF | 11.98 | ||
| P/B | 1.67 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | 7.57 |
EPS(TTM)1.63
EY4.74%
EPS(NY)2
Fwd EY5.8%
FCF(TTM)1.75
FCFY5.09%
OCF(TTM)2.87
OCFY8.34%
SpS12.33
BVpS20.57
TBVpS19.27
PEG (NY)4.64
PEG (5Y)N/A
Graham Number27.47
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
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-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 | 1.97 |
F-Score5
WACC11.24%
ROIC/WACC0.38
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 Y4.55%
EPS Next 2Y13.11%
EPS Next 3Y17.21%
EPS Next 5Y20.17%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y0.83%
Revenue growth 5Y3.03%
Sales Q2Q%3.43%
Revenue Next Year0.07%
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 Year162.87%
EBIT Next 3Y49.92%
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%
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 21.12 and the Price/Book (PB) ratio is 1.67.
What is the earnings growth outlook for GLOBALFOUNDRIES INC?
The Earnings per Share (EPS) of GLOBALFOUNDRIES INC (GFS) is expected to grow by 4.55% in the next year.