ADVANCED MICRO DEVICES (1AMD.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AMD - US0079031078 - Common Stock
210.75 EUR
-1.95 (-0.92%)
Taking everything into account, 1AMD scores 5 out of 10 in our fundamental rating. 1AMD was compared to 69 industry peers in the Semiconductors & Semiconductor Equipment industry. 1AMD is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 1AMD is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
- 1AMD had positive earnings in the past year.
- 1AMD had a positive operating cash flow in the past year.
- In the past 5 years 1AMD has always been profitable.
- In the past 5 years 1AMD always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of 1AMD (4.30%) is worse than 62.32% of its industry peers.
- With a Return On Equity value of 5.44%, 1AMD is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
- 1AMD's Return On Invested Capital of 3.71% is on the low side compared to the rest of the industry. 1AMD is outperformed by 76.81% of its industry peers.
- 1AMD had an Average Return On Invested Capital over the past 3 years of 1.56%. This is significantly below the industry average of 14.31%.
- The last Return On Invested Capital (3.71%) for 1AMD is above the 3 year average (1.56%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.3% | ||
| ROE | 5.44% | ||
| ROIC | 3.71% |
ROA(3y)1.86%
ROA(5y)11.77%
ROE(3y)2.26%
ROE(5y)18.33%
ROIC(3y)1.56%
ROIC(5y)11.51%
1.3 Margins
- 1AMD's Profit Margin of 10.32% is in line compared to the rest of the industry. 1AMD outperforms 43.48% of its industry peers.
- 1AMD's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 9.33%, 1AMD is doing worse than 73.91% of the companies in the same industry.
- 1AMD's Operating Margin has been stable in the last couple of years.
- 1AMD has a Gross Margin (48.26%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of 1AMD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.33% | ||
| PM (TTM) | 10.32% | ||
| GM | 48.26% |
OM growth 3Y-29.04%
OM growth 5Y-1.4%
PM growth 3Y-30.84%
PM growth 5Y4.67%
GM growth 3Y0.76%
GM growth 5Y2.98%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1AMD is destroying value.
- 1AMD has more shares outstanding than it did 1 year ago.
- 1AMD has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for 1AMD has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 16.13 indicates that 1AMD is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 16.13, 1AMD belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
- The Debt to FCF ratio of 1AMD is 0.59, which is an excellent value as it means it would take 1AMD, only 0.59 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of 1AMD (0.59) is better than 79.71% of its industry peers.
- A Debt/Equity ratio of 0.04 indicates that 1AMD is not too dependend on debt financing.
- 1AMD has a Debt to Equity ratio of 0.04. This is amongst the best in the industry. 1AMD outperforms 85.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.59 | ||
| Altman-Z | 16.13 |
ROIC/WACC0.34
WACC10.89%
2.3 Liquidity
- 1AMD has a Current Ratio of 2.31. This indicates that 1AMD is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of 1AMD (2.31) is comparable to the rest of the industry.
- 1AMD has a Quick Ratio of 1.68. This is a normal value and indicates that 1AMD is financially healthy and should not expect problems in meeting its short term obligations.
- 1AMD has a Quick ratio (1.68) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
- 1AMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.33%, which is quite impressive.
- 1AMD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.99% yearly.
- Looking at the last year, 1AMD shows a very strong growth in Revenue. The Revenue has grown by 31.83%.
- 1AMD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.81% yearly.
EPS 1Y (TTM)24.33%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%30.43%
Revenue 1Y (TTM)31.83%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%35.59%
3.2 Future
- 1AMD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.31% yearly.
- Based on estimates for the next years, 1AMD will show a very strong growth in Revenue. The Revenue will grow by 34.18% on average per year.
EPS Next Y21.25%
EPS Next 2Y41.36%
EPS Next 3Y46.55%
EPS Next 5Y40.31%
Revenue Next Year32.85%
Revenue Next 2Y32.51%
Revenue Next 3Y35.01%
Revenue Next 5Y34.18%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 67.33, 1AMD can be considered very expensive at the moment.
- 1AMD's Price/Earnings ratio is a bit more expensive when compared to the industry. 1AMD is more expensive than 73.91% of the companies in the same industry.
- 1AMD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.82.
- 1AMD is valuated quite expensively with a Price/Forward Earnings ratio of 37.89.
- Based on the Price/Forward Earnings ratio, 1AMD is valued a bit more expensive than the industry average as 60.87% of the companies are valued more cheaply.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. 1AMD is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.33 | ||
| Fwd PE | 37.89 |
4.2 Price Multiples
- 86.96% of the companies in the same industry are cheaper than 1AMD, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1AMD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.13 | ||
| EV/EBITDA | 67.18 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1AMD does not grow enough to justify the current Price/Earnings ratio.
- 1AMD's earnings are expected to grow with 46.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.17
PEG (5Y)1.73
EPS Next 2Y41.36%
EPS Next 3Y46.55%
5. Dividend
5.1 Amount
- 1AMD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ADVANCED MICRO DEVICES / 1AMD.MI FAQ
Can you provide the ChartMill fundamental rating for ADVANCED MICRO DEVICES?
ChartMill assigns a fundamental rating of 5 / 10 to 1AMD.MI.
Can you provide the valuation status for ADVANCED MICRO DEVICES?
ChartMill assigns a valuation rating of 1 / 10 to ADVANCED MICRO DEVICES (1AMD.MI). This can be considered as Overvalued.
How profitable is ADVANCED MICRO DEVICES (1AMD.MI) stock?
ADVANCED MICRO DEVICES (1AMD.MI) has a profitability rating of 4 / 10.
How financially healthy is ADVANCED MICRO DEVICES?
The financial health rating of ADVANCED MICRO DEVICES (1AMD.MI) is 7 / 10.
What is the earnings growth outlook for ADVANCED MICRO DEVICES?
The Earnings per Share (EPS) of ADVANCED MICRO DEVICES (1AMD.MI) is expected to grow by 21.25% in the next year.