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

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.

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.