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

Here's ADVANCED MICRO DEVICES (NASDAQ:AMD) for you, a growth stock our stock screener believes is undervalued. AMD is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Growth Assessment of AMD

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. AMD scores a 9 out of 10:

• AMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.08%, 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 a strong growth in Revenue. In the last year, the Revenue has grown by 21.71%.
• 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.
• Based on estimates for the next years, AMD will show a very strong growth in Earnings Per Share. The EPS will grow by 27.14% on average per year.
• AMD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.77% yearly.

Assessing Valuation Metrics 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:

• Compared to the rest of the industry, the Price/Earnings ratio of AMD indicates a somewhat cheap valuation: AMD is cheaper than 62.73% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of AMD indicates a somewhat cheap valuation: AMD is cheaper than 70.91% of the companies listed in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of AMD may justify a higher PE ratio.
• A more expensive valuation may be justified as AMD's earnings are expected to grow with 29.14% in the coming years.

Health Assessment of 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:

• AMD has an Altman-Z score of 8.11. This indicates that AMD is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 8.11, AMD is in the better half of the industry, outperforming 76.36% of the companies in the same industry.
• The Debt to FCF ratio of AMD is 1.51, which is an excellent value as it means it would take AMD, only 1.51 years of fcf income to pay off all of its debts.
• AMD's Debt to FCF ratio of 1.51 is fine compared to the rest of the industry. AMD outperforms 71.82% of its industry peers.
• A Debt/Equity ratio of 0.07 indicates that AMD is not too dependend on debt financing.
• AMD has a Current Ratio of 2.80. This indicates that AMD is financially healthy and has no problem in meeting its short term obligations.

Profitability Insights: AMD

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For AMD, the assigned 6 is a significant indicator of profitability:

• The last Return On Invested Capital (3.52%) for AMD is above the 3 year average (1.56%), which is a sign of increasing profitability.
• AMD has a better Profit Margin (8.03%) than 61.82% of its industry peers.
• AMD's Profit Margin has improved in the last couple of years.
• AMD's Operating Margin of 10.17% is fine compared to the rest of the industry. AMD outperforms 62.73% of its industry peers.
• The Gross Margin of AMD (50.09%) is better than 61.82% of its industry peers.
• AMD's Gross Margin has improved in the last couple of years.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of AMD for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.