ADVANCED MICRO DEVICES (AMD) Stock Fundamental Analysis
NASDAQ:AMD - Nasdaq - US0079031078 - Common Stock - Currency: USD
Taking everything into account, AMD scores 6 out of 10 in our fundamental rating. AMD was compared to 109 industry peers in the Semiconductors & Semiconductor Equipment industry. AMD is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. AMD is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, AMD could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
AMD had positive earnings in the past year.
AMD had a positive operating cash flow in the past year.
AMD had positive earnings in each of the past 5 years.
AMD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AMD has a Return On Assets of 2.37%. This is comparable to the rest of the industry: AMD outperforms 55.96% of its industry peers.
With a Return On Equity value of 2.85%, AMD perfoms like the industry average, outperforming 52.29% of the companies in the same industry.
The Return On Invested Capital of AMD (2.66%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for AMD is significantly below the industry average of 11.28%.
The 3 year average ROIC (1.56%) for AMD is below the current ROIC(2.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.37% | ||
| ROE | 2.85% | ||
| ROIC | 2.66% |
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
With a Profit Margin value of 6.36%, AMD perfoms like the industry average, outperforming 58.72% of the companies in the same industry.
AMD's Profit Margin has improved in the last couple of years.
AMD has a better Operating Margin (7.90%) than 61.47% of its industry peers.
In the last couple of years the Operating Margin of AMD has remained more or less at the same level.
The Gross Margin of AMD (49.35%) is better than 61.47% of its industry peers.
In the last couple of years the Gross Margin of AMD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.9% | ||
| PM (TTM) | 6.36% | ||
| GM | 49.35% |
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
AMD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AMD has been increased compared to 1 year ago.
Compared to 5 years ago, AMD has more shares outstanding
Compared to 1 year ago, AMD has an improved debt to assets ratio.
2.2 Solvency
AMD has an Altman-Z score of 8.82. This indicates that AMD is financially healthy and has little risk of bankruptcy at the moment.
AMD's Altman-Z score of 8.82 is amongst the best of the industry. AMD outperforms 81.65% 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.
Looking at the Debt to FCF ratio, with a value of 0.72, AMD belongs to the top of the industry, outperforming 80.73% of the companies in the same industry.
AMD has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
AMD has a better Debt to Equity ratio (0.03) than 60.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.72 | ||
| Altman-Z | 8.82 |
ROIC/WACC0.29
WACC9.32%
2.3 Liquidity
A Current Ratio of 2.62 indicates that AMD has no problem at all paying its short term obligations.
With a Current ratio value of 2.62, AMD perfoms like the industry average, outperforming 41.28% of the companies in the same industry.
A Quick Ratio of 1.83 indicates that AMD should not have too much problems paying its short term obligations.
AMD has a Quick ratio of 1.83. This is in the lower half of the industry: AMD underperforms 64.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.28% over the past year.
Measured over the past years, AMD shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.99% on average per year.
Looking at the last year, AMD shows a quite strong growth in Revenue. The Revenue has grown by 13.69% in the last year.
AMD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.81% yearly.
EPS 1Y (TTM)25.28%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%41.56%
Revenue 1Y (TTM)13.69%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%24.16%
3.2 Future
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.
EPS Next Y37.18%
EPS Next 2Y34.85%
EPS Next 3Y29.14%
EPS Next 5Y27.14%
Revenue Next Year21.85%
Revenue Next 2Y20.98%
Revenue Next 3Y18.78%
Revenue Next 5Y16.77%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.84, the valuation of AMD can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AMD is on the same level as its industry peers.
AMD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.88, which is the current average of the S&P500 Index.
AMD is valuated rather expensively with a Price/Forward Earnings ratio of 21.75.
Based on the Price/Forward Earnings ratio, AMD is valued a bit cheaper than the industry average as 61.47% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AMD to the average of the S&P500 Index (21.20), we can say AMD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.84 | ||
| Fwd PE | 21.75 |
4.2 Price Multiples
AMD's Enterprise Value to EBITDA ratio is in line with the industry average.
AMD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.59 | ||
| EV/EBITDA | 29.26 |
4.3 Compensation for Growth
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 29.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)0.77
EPS Next 2Y34.85%
EPS Next 3Y29.14%
5. Dividend
5.1 Amount
AMD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:AMD (5/1/2025, 9:46:10 AM)
99.0783
+1.73 (+1.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.95%
Inst Owner Change0.16%
Ins Owners0.33%
Ins Owner Change0.19%
Market Cap160.14B
Analysts75.56
Price Target141.37 (42.69%)
Short Float %2.77%
Short Ratio1.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.18%
Min EPS beat(2)-0.5%
Max EPS beat(2)0.13%
EPS beat(4)3
Avg EPS beat(4)0.35%
Min EPS beat(4)-0.5%
Max EPS beat(4)1.03%
EPS beat(8)6
Avg EPS beat(8)1.04%
EPS beat(12)9
Avg EPS beat(12)2.58%
EPS beat(16)13
Avg EPS beat(16)5.68%
Revenue beat(2)2
Avg Revenue beat(2)0.69%
Min Revenue beat(2)0.63%
Max Revenue beat(2)0.75%
Revenue beat(4)3
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-0.73%
Max Revenue beat(4)0.93%
Revenue beat(8)4
Avg Revenue beat(8)0.27%
Revenue beat(12)6
Avg Revenue beat(12)0.49%
Revenue beat(16)10
Avg Revenue beat(16)1.66%
PT rev (1m)-6.65%
PT rev (3m)-23.94%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)-3.41%
EPS NY rev (1m)-2.2%
EPS NY rev (3m)-10.96%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)-1.38%
Revenue NY rev (3m)-2.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.84 | ||
| Fwd PE | 21.75 | ||
| P/S | 6.21 | ||
| P/FCF | 66.59 | ||
| P/OCF | 52.66 | ||
| P/B | 2.78 | ||
| P/tB | 11.61 | ||
| EV/EBITDA | 29.26 |
EPS(TTM)3.32
EY3.35%
EPS(NY)4.55
Fwd EY4.6%
FCF(TTM)1.49
FCFY1.5%
OCF(TTM)1.88
OCFY1.9%
SpS15.95
BVpS35.62
TBVpS8.54
PEG (NY)0.8
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.37% | ||
| ROE | 2.85% | ||
| ROCE | 3.29% | ||
| ROIC | 2.66% | ||
| ROICexc | 2.9% | ||
| ROICexgc | 12.63% | ||
| OM | 7.9% | ||
| PM (TTM) | 6.36% | ||
| GM | 49.35% | ||
| FCFM | 9.33% |
ROA(3y)1.86%
ROA(5y)11.77%
ROE(3y)2.26%
ROE(5y)18.33%
ROIC(3y)1.56%
ROIC(5y)11.51%
ROICexc(3y)1.71%
ROICexc(5y)19.09%
ROICexgc(3y)9.89%
ROICexgc(5y)26.73%
ROCE(3y)1.93%
ROCE(5y)14.23%
ROICexcg growth 3Y-44.61%
ROICexcg growth 5Y-14.53%
ROICexc growth 3Y-64.41%
ROICexc growth 5Y-32.89%
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%
F-Score9
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.72 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 20.02% | ||
| Cap/Sales | 2.47% | ||
| Interest Coverage | 28.31 | ||
| Cash Conversion | 58.31% | ||
| Profit Quality | 146.56% | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 8.82 |
F-Score9
WACC9.32%
ROIC/WACC0.29
Cap/Depr(3y)15.32%
Cap/Depr(5y)38.8%
Cap/Sales(3y)2.26%
Cap/Sales(5y)2.32%
Profit Quality(3y)171.27%
Profit Quality(5y)129.37%
High Growth Momentum
Growth
EPS 1Y (TTM)25.28%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%41.56%
EPS Next Y37.18%
EPS Next 2Y34.85%
EPS Next 3Y29.14%
EPS Next 5Y27.14%
Revenue 1Y (TTM)13.69%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%24.16%
Revenue Next Year21.85%
Revenue Next 2Y20.98%
Revenue Next 3Y18.78%
Revenue Next 5Y16.77%
EBIT growth 1Y455.31%
EBIT growth 3Y-17.55%
EBIT growth 5Y28.98%
EBIT Next Year36.57%
EBIT Next 3Y32.91%
EBIT Next 5Y26.02%
FCF growth 1Y114.54%
FCF growth 3Y-9.27%
FCF growth 5Y54.18%
OCF growth 1Y82.42%
OCF growth 3Y-4.77%
OCF growth 5Y43.89%