ADVANCED MICRO DEVICES (AMD) Fundamental Analysis & Valuation

NASDAQ:AMD • US0079031078

Current stock price

255 USD
-0.07 (-0.03%)
Last:

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.
  • In the past year AMD had a positive cash flow from operations.
  • In the past 5 years AMD has always 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 Return On Equity of 6.88%. This is in the better half of the industry: AMD outperforms 64.35% of its industry peers.
  • With a decent Return On Invested Capital value of 4.43%, AMD is doing good in the industry, outperforming 61.74% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for AMD is significantly below the industry average of 10.70%.
  • The last Return On Invested Capital (4.43%) for AMD is above the 3 year average (2.52%), which is a sign of increasing profitability.
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's Profit Margin of 12.51% is fine compared to the rest of the industry. AMD outperforms 69.57% of its industry peers.
  • In the last couple of years the Profit Margin of AMD has declined.
  • AMD has a Operating Margin of 10.66%. This is in the better half of the industry: AMD outperforms 64.35% of its industry peers.
  • AMD's Operating Margin has declined in the last couple of years.
  • AMD's Gross Margin of 49.52% is in line compared to the rest of the industry. AMD outperforms 60.00% of its industry peers.
  • AMD's Gross Margin has improved in the last couple of years.
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.
  • Compared to 1 year ago, AMD has more shares outstanding
  • The number of shares outstanding for AMD has been increased compared to 5 years ago.
  • Compared to 1 year ago, AMD has a worse debt to assets ratio.
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

  • AMD has an Altman-Z score of 18.92. 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 18.92, AMD belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 0.48, AMD is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
  • AMD has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
  • With a decent Debt to Equity ratio value of 0.04, AMD is doing good in the industry, outperforming 61.74% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 0.48
Altman-Z 18.92
ROIC/WACC0.38
WACC11.7%
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

  • AMD has a Current Ratio of 2.85. This indicates that AMD is financially healthy and has no problem in meeting its short term obligations.
  • AMD's Current ratio of 2.85 is in line compared to the rest of the industry. AMD outperforms 48.70% of its industry peers.
  • 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.
  • With a Quick ratio value of 2.01, AMD perfoms like the industry average, outperforming 44.35% of the companies in the same industry.
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.
  • Measured over the past years, AMD shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.45% on average per year.
  • The Revenue has grown by 34.34% in the past year. This is a very strong growth!
  • The Revenue has been growing by 28.82% on average over the past years. This is a very strong growth!
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

  • The Earnings Per Share is expected to grow by 42.41% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 31.77% on average over the next years. This is a very strong growth
EPS Next Y61.77%
EPS Next 2Y62.77%
EPS Next 3Y50.47%
EPS Next 5Y42.41%
Revenue Next Year36.58%
Revenue Next 2Y39.79%
Revenue Next 3Y35.46%
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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5

4. AMD Valuation Analysis

4.1 Price/Earnings Ratio

  • AMD is valuated quite expensively with a Price/Earnings ratio of 61.15.
  • AMD's Price/Earnings is on the same level as the industry average.
  • AMD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.33.
  • The Price/Forward Earnings ratio is 37.80, which means the current valuation is very expensive for AMD.
  • AMD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AMD is cheaper than 64.35% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 38.16. AMD is around the same levels.
Industry RankSector Rank
PE 61.15
Fwd PE 37.8
AMD Price Earnings VS Forward Price EarningsAMD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • AMD's Enterprise Value to EBITDA is on the same level as the industry average.
  • AMD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AMD is cheaper than 65.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF 61.73
EV/EBITDA 60.24
AMD Per share dataAMD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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.
  • A more expensive valuation may be justified as AMD's earnings are expected to grow with 50.47% in the coming years.
PEG (NY)0.99
PEG (5Y)2.31
EPS Next 2Y62.77%
EPS Next 3Y50.47%

More info and screens

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 (4/15/2026, 9:58:09 AM)

255

-0.07 (-0.03%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-03
Earnings (Next)05-05
Inst Owners72.19%
Inst Owner Change0.04%
Ins Owners0.32%
Ins Owner Change-5.92%
Market Cap415.74B
Revenue(TTM)34.64B
Net Income(TTM)4.33B
Analysts79.66
Price Target285.74 (12.05%)
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)0.91%
PT rev (3m)2.32%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)6.45%
EPS NY rev (1m)0.33%
EPS NY rev (3m)3.31%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)6.03%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)4.25%
Valuation
Industry RankSector Rank
PE 61.15
Fwd PE 37.8
P/S 12
P/FCF 61.73
P/OCF 53.93
P/B 6.6
P/tB 19.64
EV/EBITDA 60.24
EPS(TTM)4.17
EY1.64%
EPS(NY)6.75
Fwd EY2.65%
FCF(TTM)4.13
FCFY1.62%
OCF(TTM)4.73
OCFY1.85%
SpS21.25
BVpS38.64
TBVpS12.98
PEG (NY)0.99
PEG (5Y)2.31
Graham Number60.2126 (-76.39%)
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 18.92
F-Score7
WACC11.7%
ROIC/WACC0.38
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 Year36.58%
Revenue Next 2Y39.79%
Revenue Next 3Y35.46%
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 61.15 and the Price/Book (PB) ratio is 6.6.