ADVANCED MICRO DEVICES (NASDAQ:AMD) is showing good growth, while it is not too expensive.

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AMD (217.50 ▲ 3.47%)

Consider ADVANCED MICRO DEVICES (NASDAQ:AMD) as an affordable growth stock, identified by our stock screening tool. NASDAQ:AMD is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.


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Evaluating Growth: NASDAQ:AMD

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:AMD has earned a 9 for growth:

  • The Earnings Per Share has grown by an impressive 25.28% over the past year.
  • AMD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.99% yearly.
  • AMD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.69%.
  • Measured over the past years, AMD shows a very strong growth in Revenue. The Revenue has been growing by 30.81% on average per year.
  • AMD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.03% yearly.
  • AMD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.87% yearly.

Assessing Valuation Metrics for NASDAQ:AMD

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:AMD, the assigned 5 reflects its valuation:

  • AMD's Price/Earnings ratio is a bit cheaper when compared to the industry. AMD is cheaper than 64.49% of the companies in the same industry.
  • 71.96% of the companies in the same industry are more expensive than AMD, based on the Price/Forward Earnings ratio.
  • AMD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • AMD has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as AMD's earnings are expected to grow with 31.27% in the coming years.

Assessing Health Metrics for NASDAQ:AMD

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:AMD was assigned a score of 6 for health:

  • AMD has an Altman-Z score of 9.02. This indicates that AMD is financially healthy and has little risk of bankruptcy at the moment.
  • AMD's Altman-Z score of 9.02 is fine compared to the rest of the industry. AMD outperforms 79.44% of its industry peers.
  • AMD has a debt to FCF ratio of 0.72. This is a very positive value and a sign of high solvency as it would only need 0.72 years to pay back of all of its debts.
  • With an excellent Debt to FCF ratio value of 0.72, AMD belongs to the best of the industry, outperforming 82.24% of the companies in the same industry.
  • A Debt/Equity ratio of 0.03 indicates that AMD is not too dependend on debt financing.
  • AMD has a Current Ratio of 2.62. This indicates that AMD is financially healthy and has no problem in meeting its short term obligations.

Profitability Examination for NASDAQ:AMD

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:AMD scores a 6 out of 10:

  • The 3 year average ROIC (1.56%) for AMD is below the current ROIC(2.66%), indicating increased profibility in the last year.
  • AMD's Profit Margin has improved in the last couple of years.
  • The Operating Margin of AMD (7.90%) is better than 60.75% of its industry peers.
  • With a decent Gross Margin value of 49.35%, AMD is doing good in the industry, outperforming 63.55% of the companies in the same industry.
  • AMD's Gross Margin has improved in the last couple of years.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of AMD

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.