ADVANCED MICRO DEVICES (AMD) Stock Fundamental Analysis
USA - NASDAQ:AMD - US0079031078 - Common Stock
252.92 USD
+17.93 (+7.63%)
254.25 USD
+1.33 (+0.53%)
Overall AMD gets a fundamental rating of 6 out of 10. We evaluated AMD against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. AMD scores excellent on profitability, but there are some minor concerns on its financial health. AMD is valued quite expensively, but it does show have an excellent growth rating. These ratings could make AMD a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year AMD was profitable.
AMD had a positive operating cash flow in the past year.
In the past 5 years AMD has always been profitable.
Each year in the past 5 years AMD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AMD (3.79%) is better than 63.39% of its industry peers.
The Return On Equity of AMD (4.75%) is better than 60.71% of its industry peers.
With a Return On Invested Capital value of 3.02%, AMD perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AMD is significantly below the industry average of 11.03%.
The last Return On Invested Capital (3.02%) for AMD is above the 3 year average (1.56%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 4.75% | ||
| ROIC | 3.02% |
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
AMD has a better Profit Margin (9.57%) than 68.75% of its industry peers.
In the last couple of years the Profit Margin of AMD has grown nicely.
With a decent Operating Margin value of 8.20%, AMD is doing good in the industry, outperforming 63.39% of the companies in the same industry.
In the last couple of years the Operating Margin of AMD has remained more or less at the same level.
AMD has a Gross Margin of 47.62%. This is comparable to the rest of the industry: AMD outperforms 57.14% of its industry peers.
AMD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.2% | ||
| PM (TTM) | 9.57% | ||
| GM | 47.62% |
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
The debt/assets ratio for AMD has been reduced compared to a year ago.
2.2 Solvency
AMD has an Altman-Z score of 15.91. This indicates that AMD is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 15.91, AMD belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
AMD has a debt to FCF ratio of 0.80. This is a very positive value and a sign of high solvency as it would only need 0.80 years to pay back of all of its debts.
AMD's Debt to FCF ratio of 0.80 is fine compared to the rest of the industry. AMD outperforms 77.68% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that AMD is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.05, AMD is in line with its industry, outperforming 59.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 15.91 |
ROIC/WACC0.26
WACC11.57%
2.3 Liquidity
A Current Ratio of 2.49 indicates that AMD has no problem at all paying its short term obligations.
AMD has a Current ratio (2.49) which is in line with its industry peers.
AMD has a Quick Ratio of 1.81. This is a normal value and indicates that AMD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.81, AMD is in line with its industry, outperforming 41.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.10% over the past year.
AMD 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, AMD shows a very strong growth in Revenue. The Revenue has grown by 27.17%.
The Revenue has been growing by 30.81% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)24.1%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%-30.43%
Revenue 1Y (TTM)27.17%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%31.71%
3.2 Future
AMD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.28% yearly.
The Revenue is expected to grow by 18.71% on average over the next years. This is quite good.
EPS Next Y18.72%
EPS Next 2Y34.31%
EPS Next 3Y31.89%
EPS Next 5Y26.28%
Revenue Next Year28.8%
Revenue Next 2Y25.09%
Revenue Next 3Y22.87%
Revenue Next 5Y18.71%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
AMD is valuated quite expensively with a Price/Earnings ratio of 73.31.
The rest of the industry has a similar Price/Earnings ratio as AMD.
AMD is valuated expensively when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 42.23, the valuation of AMD can be described as expensive.
AMD's Price/Forward Earnings ratio is in line with the industry average.
AMD is valuated expensively when we compare the Price/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.31 | ||
| Fwd PE | 42.23 |
4.2 Price Multiples
AMD's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as AMD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 101.52 | ||
| EV/EBITDA | 68.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AMD does not grow enough to justify the current Price/Earnings ratio.
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 31.89% in the coming years.
PEG (NY)3.92
PEG (5Y)1.88
EPS Next 2Y34.31%
EPS Next 3Y31.89%
5. Dividend
5.1 Amount
No dividends for AMD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
252.92
+17.93 (+7.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.37%
Inst Owner Change-1.2%
Ins Owners0.34%
Ins Owner Change1.13%
Market Cap410.45B
Revenue(TTM)29.60B
Net Income(TTM)2.83B
Analysts76.27
Price Target188.28 (-25.56%)
Short Float %2.35%
Short Ratio0.65
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)-1.22%
Min EPS beat(2)-3.25%
Max EPS beat(2)0.8%
EPS beat(4)2
Avg EPS beat(4)-0.7%
Min EPS beat(4)-3.25%
Max EPS beat(4)0.8%
EPS beat(8)5
Avg EPS beat(8)0.01%
EPS beat(12)8
Avg EPS beat(12)0.42%
EPS beat(16)12
Avg EPS beat(16)3.54%
Revenue beat(2)2
Avg Revenue beat(2)2.95%
Min Revenue beat(2)2.55%
Max Revenue beat(2)3.35%
Revenue beat(4)4
Avg Revenue beat(4)1.82%
Min Revenue beat(4)0.63%
Max Revenue beat(4)3.35%
Revenue beat(8)6
Avg Revenue beat(8)1.01%
Revenue beat(12)7
Avg Revenue beat(12)0.58%
Revenue beat(16)10
Avg Revenue beat(16)1.32%
PT rev (1m)0%
PT rev (3m)28.35%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)3.5%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)6.53%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)3.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.31 | ||
| Fwd PE | 42.23 | ||
| P/S | 13.87 | ||
| P/FCF | 101.52 | ||
| P/OCF | 84.16 | ||
| P/B | 6.88 | ||
| P/tB | 24.48 | ||
| EV/EBITDA | 68.61 |
EPS(TTM)3.45
EY1.36%
EPS(NY)5.99
Fwd EY2.37%
FCF(TTM)2.49
FCFY0.99%
OCF(TTM)3.01
OCFY1.19%
SpS18.24
BVpS36.77
TBVpS10.33
PEG (NY)3.92
PEG (5Y)1.88
Graham Number53.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 4.75% | ||
| ROCE | 3.74% | ||
| ROIC | 3.02% | ||
| ROICexc | 3.32% | ||
| ROICexgc | 12.11% | ||
| OM | 8.2% | ||
| PM (TTM) | 9.57% | ||
| GM | 47.62% | ||
| FCFM | 13.66% |
ROA(3y)1.86%
ROA(5y)11.77%
ROE(3y)2.26%
ROE(5y)18.33%
ROIC(3y)1.56%
ROIC(5y)11.51%
ROICexc(3y)1.71%
ROICexc(5y)19.09%
ROICexgc(3y)9.89%
ROICexgc(5y)26.73%
ROCE(3y)1.93%
ROCE(5y)14.23%
ROICexgc growth 3Y-44.61%
ROICexgc 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-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.8 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 27.16% | ||
| Cap/Sales | 2.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.69% | ||
| Profit Quality | 142.66% | ||
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z | 15.91 |
F-Score6
WACC11.57%
ROIC/WACC0.26
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)24.1%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%-30.43%
EPS Next Y18.72%
EPS Next 2Y34.31%
EPS Next 3Y31.89%
EPS Next 5Y26.28%
Revenue 1Y (TTM)27.17%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%31.71%
Revenue Next Year28.8%
Revenue Next 2Y25.09%
Revenue Next 3Y22.87%
Revenue Next 5Y18.71%
EBIT growth 1Y191.83%
EBIT growth 3Y-17.55%
EBIT growth 5Y28.98%
EBIT Next Year15.36%
EBIT Next 3Y26.98%
EBIT Next 5Y25.29%
FCF growth 1Y116.55%
FCF growth 3Y-9.27%
FCF growth 5Y54.18%
OCF growth 1Y103.46%
OCF growth 3Y-4.77%
OCF growth 5Y43.89%
ADVANCED MICRO DEVICES / AMD FAQ
Can you provide the ChartMill fundamental rating for ADVANCED MICRO DEVICES?
ChartMill assigns a fundamental rating of 6 / 10 to AMD.
What is the valuation status for AMD stock?
ChartMill assigns a valuation rating of 3 / 10 to ADVANCED MICRO DEVICES (AMD). This can be considered as Overvalued.
Can you provide the profitability details for ADVANCED MICRO DEVICES?
ADVANCED MICRO DEVICES (AMD) has a profitability rating of 7 / 10.
How financially healthy is ADVANCED MICRO DEVICES?
The financial health rating of ADVANCED MICRO DEVICES (AMD) is 6 / 10.
What is the earnings growth outlook for ADVANCED MICRO DEVICES?
The Earnings per Share (EPS) of ADVANCED MICRO DEVICES (AMD) is expected to grow by 18.72% in the next year.