ADVANCED MICRO DEVICES (AMD) Fundamental Analysis & Valuation

NASDAQ:AMD • US0079031078

Current stock price

303.46 USD
+18.97 (+6.67%)
At close:
299.539 USD
-3.92 (-1.29%)
Pre-Market:

This AMD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. AMD Profitability Analysis

1.1 Basic Checks

  • AMD had positive earnings in the past year.
  • AMD had a positive operating cash flow in the past year.
  • Each year in the past 5 years AMD has been profitable.
  • In the past 5 years AMD always reported a positive cash flow from operatings.
AMD Yearly Net Income VS EBIT VS OCF VS FCFAMD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

1.2 Ratios

  • The Return On Assets of AMD (5.64%) is better than 70.43% of its industry peers.
  • AMD has a better Return On Equity (6.88%) than 64.35% of its industry peers.
  • AMD has a Return On Invested Capital of 4.43%. This is in the better half of the industry: AMD outperforms 61.74% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for AMD is significantly below the industry average of 10.89%.
  • The 3 year average ROIC (2.52%) for AMD is below the current ROIC(4.43%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.64%
ROE 6.88%
ROIC 4.43%
ROA(3y)3.09%
ROA(5y)7.34%
ROE(3y)3.75%
ROE(5y)11.17%
ROIC(3y)2.52%
ROIC(5y)9.01%
AMD Yearly ROA, ROE, ROICAMD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100

1.3 Margins

  • AMD has a better Profit Margin (12.51%) than 69.57% of its industry peers.
  • AMD's Profit Margin has declined in the last couple of years.
  • AMD's Operating Margin of 10.66% is fine compared to the rest of the industry. AMD outperforms 64.35% of its industry peers.
  • In the last couple of years the Operating Margin of AMD has declined.
  • The Gross Margin of AMD (49.52%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of AMD has grown nicely.
Industry RankSector Rank
OM 10.66%
PM (TTM) 12.51%
GM 49.52%
OM growth 3Y29.39%
OM growth 5Y-5.33%
PM growth 3Y30.8%
PM growth 5Y-13.27%
GM growth 3Y3.3%
GM growth 5Y2.15%
AMD Yearly Profit, Operating, Gross MarginsAMD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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6

2. AMD Health Analysis

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.
  • AMD has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for AMD is higher compared to a year ago.
AMD Yearly Shares OutstandingAMD Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
AMD Yearly Total Debt VS Total AssetsAMD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • An Altman-Z score of 22.32 indicates that AMD is not in any danger for bankruptcy at the moment.
  • AMD has a better Altman-Z score (22.32) than 82.61% of its industry peers.
  • AMD has a debt to FCF ratio of 0.48. This is a very positive value and a sign of high solvency as it would only need 0.48 years to pay back of all of its debts.
  • AMD has a better Debt to FCF ratio (0.48) than 78.26% of its industry peers.
  • AMD has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
  • AMD has a better Debt to Equity ratio (0.04) than 61.74% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 0.48
Altman-Z 22.32
ROIC/WACC0.37
WACC12.03%
AMD Yearly LT Debt VS Equity VS FCFAMD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B 40B 60B

2.3 Liquidity

  • A Current Ratio of 2.85 indicates that AMD has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.85, AMD is in line with its industry, outperforming 48.70% of the companies in the same industry.
  • AMD has a Quick Ratio of 2.01. This indicates that AMD is financially healthy and has no problem in meeting its short term obligations.
  • AMD's Quick ratio of 2.01 is in line compared to the rest of the industry. AMD outperforms 43.48% of its industry peers.
Industry RankSector Rank
Current Ratio 2.85
Quick Ratio 2.01
AMD Yearly Current Assets VS Current LiabilitesAMD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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10

3. AMD Growth Analysis

3.1 Past

  • AMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.60%, which is quite impressive.
  • AMD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.45% yearly.
  • AMD shows a strong growth in Revenue. In the last year, the Revenue has grown by 34.34%.
  • AMD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.82% yearly.
EPS 1Y (TTM)25.6%
EPS 3Y5.61%
EPS 5Y26.45%
EPS Q2Q%40.37%
Revenue 1Y (TTM)34.34%
Revenue growth 3Y13.64%
Revenue growth 5Y28.82%
Sales Q2Q%34.11%

3.2 Future

  • Based on estimates for the next years, AMD will show a very strong growth in Earnings Per Share. The EPS will grow by 42.41% on average per year.
  • AMD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 31.77% yearly.
EPS Next Y61.77%
EPS Next 2Y62.77%
EPS Next 3Y50.47%
EPS Next 5Y42.41%
Revenue Next Year36.91%
Revenue Next 2Y40.02%
Revenue Next 3Y35.53%
Revenue Next 5Y31.77%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
AMD Yearly Revenue VS EstimatesAMD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20B 40B 60B 80B 100B
AMD Yearly EPS VS EstimatesAMD Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 5 10 15 20

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4

4. AMD Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 72.77 indicates a quite expensive valuation of AMD.
  • Compared to the rest of the industry, the Price/Earnings ratio of AMD is on the same level as its industry peers.
  • AMD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.50.
  • Based on the Price/Forward Earnings ratio of 44.99, the valuation of AMD can be described as expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as AMD.
  • AMD is valuated expensively when we compare the Price/Forward Earnings ratio to 22.62, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 72.77
Fwd PE 44.99
AMD Price Earnings VS Forward Price EarningsAMD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • AMD's Enterprise Value to EBITDA is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, AMD is valued a bit cheaper than 63.48% of the companies in the same industry.
Industry RankSector Rank
P/FCF 73.46
EV/EBITDA 72.02
AMD Per share dataAMD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of AMD may justify a higher PE ratio.
  • AMD's earnings are expected to grow with 50.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)2.75
EPS Next 2Y62.77%
EPS Next 3Y50.47%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. AMD Dividend Analysis

5.1 Amount

  • AMD does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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AMD Fundamentals: All Metrics, Ratios and Statistics

ADVANCED MICRO DEVICES

NASDAQ:AMD (4/22/2026, 8:07:45 PM)

Premarket: 299.539 -3.92 (-1.29%)

303.46

+18.97 (+6.67%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-03
Earnings (Next)05-05
Inst Owners72.19%
Inst Owner Change0.06%
Ins Owners0.32%
Ins Owner Change-6.68%
Market Cap494.74B
Revenue(TTM)34.64B
Net Income(TTM)4.33B
Analysts79.66
Price Target285.48 (-5.92%)
Short Float %2.24%
Short Ratio0.97
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)2
Avg EPS beat(2)8.48%
Min EPS beat(2)2.13%
Max EPS beat(2)14.83%
EPS beat(4)3
Avg EPS beat(4)3.63%
Min EPS beat(4)-3.25%
Max EPS beat(4)14.83%
EPS beat(8)6
Avg EPS beat(8)1.99%
EPS beat(12)9
Avg EPS beat(12)1.9%
EPS beat(16)12
Avg EPS beat(16)2.85%
Revenue beat(2)2
Avg Revenue beat(2)4.93%
Min Revenue beat(2)4.69%
Max Revenue beat(2)5.18%
Revenue beat(4)4
Avg Revenue beat(4)3.94%
Min Revenue beat(4)2.55%
Max Revenue beat(4)5.18%
Revenue beat(8)7
Avg Revenue beat(8)2.17%
Revenue beat(12)8
Avg Revenue beat(12)1.49%
Revenue beat(16)10
Avg Revenue beat(16)1.36%
PT rev (1m)0.82%
PT rev (3m)1.23%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)5.53%
EPS NY rev (1m)0.33%
EPS NY rev (3m)3.31%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)5.65%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)3.76%
Valuation
Industry RankSector Rank
PE 72.77
Fwd PE 44.99
P/S 14.28
P/FCF 73.46
P/OCF 64.18
P/B 7.85
P/tB 23.37
EV/EBITDA 72.02
EPS(TTM)4.17
EY1.37%
EPS(NY)6.75
Fwd EY2.22%
FCF(TTM)4.13
FCFY1.36%
OCF(TTM)4.73
OCFY1.56%
SpS21.25
BVpS38.64
TBVpS12.98
PEG (NY)1.18
PEG (5Y)2.75
Graham Number60.2126 (-80.16%)
Profitability
Industry RankSector Rank
ROA 5.64%
ROE 6.88%
ROCE 5.47%
ROIC 4.43%
ROICexc 5.25%
ROICexgc 19.79%
OM 10.66%
PM (TTM) 12.51%
GM 49.52%
FCFM 19.44%
ROA(3y)3.09%
ROA(5y)7.34%
ROE(3y)3.75%
ROE(5y)11.17%
ROIC(3y)2.52%
ROIC(5y)9.01%
ROICexc(3y)2.89%
ROICexc(5y)14.94%
ROICexgc(3y)11.82%
ROICexgc(5y)24.76%
ROCE(3y)3.12%
ROCE(5y)11.14%
ROICexgc growth 3Y12.17%
ROICexgc growth 5Y-7.74%
ROICexc growth 3Y45.68%
ROICexc growth 5Y-27.4%
OM growth 3Y29.39%
OM growth 5Y-5.33%
PM growth 3Y30.8%
PM growth 5Y-13.27%
GM growth 3Y3.3%
GM growth 5Y2.15%
F-Score7
Asset Turnover0.45
Health
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 0.48
Debt/EBITDA 0.35
Cap/Depr 32.42%
Cap/Sales 2.81%
Interest Coverage 40.59
Cash Conversion 115.09%
Profit Quality 155.36%
Current Ratio 2.85
Quick Ratio 2.01
Altman-Z 22.32
F-Score7
WACC12.03%
ROIC/WACC0.37
Cap/Depr(3y)23%
Cap/Depr(5y)30.75%
Cap/Sales(3y)2.56%
Cap/Sales(5y)2.28%
Profit Quality(3y)144.4%
Profit Quality(5y)154.2%
High Growth Momentum
Growth
EPS 1Y (TTM)25.6%
EPS 3Y5.61%
EPS 5Y26.45%
EPS Q2Q%40.37%
EPS Next Y61.77%
EPS Next 2Y62.77%
EPS Next 3Y50.47%
EPS Next 5Y42.41%
Revenue 1Y (TTM)34.34%
Revenue growth 3Y13.64%
Revenue growth 5Y28.82%
Sales Q2Q%34.11%
Revenue Next Year36.91%
Revenue Next 2Y40.02%
Revenue Next 3Y35.53%
Revenue Next 5Y31.77%
EBIT growth 1Y81.26%
EBIT growth 3Y47.04%
EBIT growth 5Y21.96%
EBIT Next Year67.81%
EBIT Next 3Y55.6%
EBIT Next 5Y45.69%
FCF growth 1Y180.04%
FCF growth 3Y29.31%
FCF growth 5Y54.02%
OCF growth 1Y153.5%
OCF growth 3Y29.31%
OCF growth 5Y48.4%

ADVANCED MICRO DEVICES / AMD Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for ADVANCED MICRO DEVICES?

ChartMill assigns a fundamental rating of 6 / 10 to AMD.


Can you provide the valuation status for ADVANCED MICRO DEVICES?

ChartMill assigns a valuation rating of 5 / 10 to ADVANCED MICRO DEVICES (AMD). This can be considered as Fairly Valued.


What is the profitability of AMD stock?

ADVANCED MICRO DEVICES (AMD) has a profitability rating of 6 / 10.


What is the valuation of ADVANCED MICRO DEVICES based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ADVANCED MICRO DEVICES (AMD) is 72.77 and the Price/Book (PB) ratio is 7.85.