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 is not valued too expensively and it also shows a decent growth rate.
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
The Return On Assets of GFS (-0.26%) is comparable to the rest of the industry.
GFS has a Return On Equity (-0.38%) which is in line with its industry peers.
GFS has a better Return On Invested Capital (4.20%) than 61.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
The Operating Margin of GFS (11.44%) is better than 67.86% of its industry peers.
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.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GFS is destroying value.
The number of shares outstanding for GFS remains at a similar level compared to 1 year ago.
GFS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GFS has an improved debt to assets ratio.
2.2 Solvency
GFS has an Altman-Z score of 2.16. This is not the best score and indicates that GFS is in the grey zone with still only limited risk for bankruptcy at the moment.
GFS's Altman-Z score of 2.16 is on the low side compared to the rest of the industry. GFS is outperformed by 63.39% 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.
Looking at the Debt to FCF ratio, with a value of 1.43, GFS is in the better half of 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's Debt to Equity ratio of 0.13 is in line compared 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 | 2.16 |
ROIC/WACC0.42
WACC10.1%
2.3 Liquidity
GFS has a Current Ratio of 3.03. This indicates that GFS is financially healthy and has no problem in meeting its short term obligations.
GFS has a Current ratio of 3.03. This is comparable 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 has a Quick ratio of 2.24. This is comparable 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
The earnings per share for GFS have decreased by -6.32% in the last year.
Looking at the last year, GFS shows a small growth in Revenue. The Revenue has grown by 0.25% in the last 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
GFS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.17% yearly.
GFS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.19% yearly.
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
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.
When comparing the Price/Earnings ratio of GFS to the average of the S&P500 Index (26.31), we can say GFS is valued inline with the index average.
With a Price/Forward Earnings ratio of 18.12, GFS is valued on the expensive side.
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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 18.12 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GFS indicates a rather cheap valuation: GFS is cheaper than 90.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.07 | ||
| EV/EBITDA | 7.68 |
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 16.63% in the coming years.
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 Cap19.89B
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)0.2%
EPS NQ rev (3m)0.98%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)-0.05%
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 | 17.07 | ||
| P/OCF | 10.96 | ||
| P/B | 1.7 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 7.68 |
EPS(TTM)1.63
EY4.55%
EPS(NY)1.98
Fwd EY5.52%
FCF(TTM)2.1
FCFY5.86%
OCF(TTM)3.27
OCFY9.12%
SpS12.24
BVpS21.1
TBVpS19.41
PEG (NY)5.39
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 | 2.16 |
F-Score6
WACC10.1%
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 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.