News Image

In the world of growth stocks, ADVANCED MICRO DEVICES (NASDAQ:AMD) shines as a value proposition.

By Mill Chart

Last update: Apr 14, 2025

Uncover the potential of ADVANCED MICRO DEVICES (NASDAQ:AMD), a growth stock that our stock screener found to be reasonably priced. AMD is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.


Affordable Growth stocks image

Assessing Growth Metrics for 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. AMD has earned a 8 for growth:

  • AMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.28%, which is quite impressive.
  • The Earnings Per Share has been growing by 38.99% on average over the past years. This is a very strong growth
  • 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.
  • The Earnings Per Share is expected to grow by 27.14% on average over the next years. This is a very strong growth
  • AMD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.77% yearly.

A Closer Look at Valuation for 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 AMD, the assigned 5 reflects its valuation:

  • Based on the Price/Forward Earnings ratio, AMD is valued a bit cheaper than the industry average as 68.81% of the companies are valued more expensively.
  • The 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.
  • AMD's earnings are expected to grow with 31.09% in the coming years. This may justify a more expensive valuation.

Evaluating Health: AMD

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of AMD, the assigned 6 reflects its health status:

  • An Altman-Z score of 8.49 indicates that AMD is not in any danger for bankruptcy at the moment.
  • AMD's Altman-Z score of 8.49 is fine compared to the rest of the industry. AMD outperforms 78.90% of its industry peers.
  • The Debt to FCF ratio of AMD is 0.72, which is an excellent value as it means it would take AMD, only 0.72 years of fcf income to pay off all of its debts.
  • AMD has a better Debt to FCF ratio (0.72) than 81.65% of its industry peers.
  • 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 Analysis for AMD

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of AMD, the assigned 6 is noteworthy for profitability:

  • The 3 year average ROIC (1.56%) for AMD is below the current ROIC(2.66%), indicating increased profibility in the last year.
  • In the last couple of years the Profit Margin of AMD has grown nicely.
  • Looking at the Operating Margin, with a value of 7.90%, AMD is in the better half of the industry, outperforming 62.39% of the companies in the same industry.
  • AMD has a better Gross Margin (49.35%) than 64.22% of its industry peers.
  • 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.

Our latest full fundamental report of AMD contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

ADVANCED MICRO DEVICES

NASDAQ:AMD (4/28/2025, 8:00:00 PM)

After market: 96.63 +0.24 (+0.25%)

96.39

-0.25 (-0.26%)



Find more stocks in the Stock Screener

AMD Latest News and Analysis

ChartMill News Image6 days ago - ChartmillStay informed with the top movers within the S&P500 index on Wednesday.

Get insights into the S&P500 index performance on Wednesday. Explore the top gainers and losers within the S&P500 index in today's session.

Mentions: LII KMB BMY BA ...

ChartMill News Image6 days ago - ChartmillWhich S&P500 stocks are gapping on Wednesday?

Curious about the S&P500 stocks that are gapping on Wednesday? Explore the gap up and gap down stocks in the S&P500 index during today's session.

Mentions: NEM LII KMB CME ...

ChartMill News Image8 days ago - ChartmillWhich S&P500 stocks are the most active on Monday?

Stay informed about the most active stocks in the S&P500 index on Monday's session. Discover the stocks that are generating the highest trading volume and driving market activity.

Mentions: F AMZN SMCI AAPL ...

ChartMill News Image11 days ago - ChartmillMarket Monitor April 18 ( Netflix UP, DOWN)

Wall Street Mostly Lower Amid Trump-Fed Tensions, Nvidia’s Continued Slide

Mentions: AA LLY UNH NFLX ...

ChartMill News Image12 days ago - ChartmillThursday's session: most active stock in the S&P500 index

Looking for the most active S&P500 stocks in today's session? Join us as we dive into the US markets on Thursday and discover the stocks that are dominating the trading activity and setting the pace for the market.

Mentions: F BAC PFE AMZN ...

ChartMill News Image12 days ago - ChartmillMarket Monitor April 17 ( Hertz UP, Nvidia, AMD DOWN)

Wall Street Tumbles as Powell Dashes Rate-Cut Hopes, Nvidia Sinks on Export Restrictions

Mentions: HTZ GOOG NVDA MU ...

ChartMill News Image13 days ago - ChartmillStay informed with the top movers within the S&P500 index on Wednesday.

Let's delve into the developments on the US markets one hour before the close of the markets on Wednesday. Below, you'll find the top gainers and losers within the S&P500 index during today's session.

Mentions: MOS NEM APA DVN ...

ChartMill News Image13 days ago - ChartmillMost active S&P500 stocks in Wednesday's session

Stay informed about the most active S&P500 stocks in today's session as we take a closer look at what's happening on the US markets on Wednesday. Discover the stocks that are generating the highest trading volume and driving market activity.

Mentions: F BAC AMZN AAPL ...

ChartMill News Image13 days ago - ChartmillDiscover which S&P500 stocks are making waves on Wednesday.

Let's delve into the developments on the US markets in the middle of the day on Wednesday. Below, you'll find the top gainers and losers within the S&P500 index during today's session.

Mentions: CF MOS APA DVN ...

ChartMill News Image13 days ago - ChartmillWednesday's session: gap up and gap down stock in the S&P500 index

Let's take a look at the S&P500 stocks that are experiencing notable price gaps in today's session on Wednesday. Discover the gap up and gap down stocks in the S&P500 index.

Mentions: IPG OMC JBHT MPWR ...

ChartMill News Image13 days ago - ChartmillWednesday's pre-market session: top gainers and losers in the S&P500 index

Before the US market kicks off on Wednesday, let's examine the pre-market session and unveil the notable performers among the S&P500 top gainers and losers.

Mentions: NEM JCI TRV CNC ...

ChartMill News Image15 days ago - ChartmillIn the world of growth stocks, ADVANCED MICRO DEVICES (NASDAQ:AMD) shines as a value proposition.

ADVANCED MICRO DEVICES was identified as a growth stock that isn't overvalued. NASDAQ:AMD is excelling in various growth indicators while maintaining a solid financial footing.

Follow ChartMill for more