ADVANCED MICRO DEVICES (AMD) Stock Fundamental Analysis
NASDAQ:AMD - US0079031078 - Common Stock
166.62 USD
+3.26 (+2%)
166.75 USD
+0.13 (+0.08%)
Overall AMD gets a fundamental rating of 6 out of 10. We evaluated AMD against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of AMD get a neutral evaluation. Nothing too spectacular is happening here. AMD shows excellent growth, but is valued quite expensive already. With these ratings, AMD could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year AMD was profitable.
In the past year AMD had a positive cash flow from operations.
Each year in the past 5 years AMD has been profitable.
Each year in the past 5 years AMD had a positive operating cash flow.
1.2 Ratios
AMD has a Return On Assets of 3.79%. This is in the better half of the industry: AMD outperforms 61.82% of its industry peers.
AMD's Return On Equity of 4.75% is in line compared to the rest of the industry. AMD outperforms 60.00% of its industry peers.
AMD's Return On Invested Capital of 3.02% is in line compared to the rest of the industry. AMD outperforms 54.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMD is significantly below the industry average of 10.98%.
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
With a decent Profit Margin value of 9.57%, AMD is doing good in the industry, outperforming 67.27% of the companies in the same industry.
In the last couple of years the Profit Margin of AMD has grown nicely.
AMD's Operating Margin of 8.20% is in line compared to the rest of the industry. AMD outperforms 60.00% of its industry peers.
AMD's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 47.62%, AMD perfoms like the industry average, outperforming 56.36% of the companies in the same industry.
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.
Compared to 1 year ago, AMD has more shares outstanding
Compared to 5 years ago, AMD has more shares outstanding
AMD has a better debt/assets ratio than last year.
2.2 Solvency
AMD has an Altman-Z score of 11.52. This indicates that AMD is financially healthy and has little risk of bankruptcy at the moment.
AMD has a Altman-Z score of 11.52. This is amongst the best in the industry. AMD outperforms 83.64% of its industry peers.
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.
The Debt to FCF ratio of AMD (0.80) is better than 77.27% of its industry peers.
AMD has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.05, AMD is in line with its industry, outperforming 58.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 11.52 |
ROIC/WACC0.26
WACC11.7%
2.3 Liquidity
AMD has a Current Ratio of 2.49. This indicates that AMD is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.49, AMD is doing worse than 60.91% of the companies in the same industry.
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.
The Quick ratio of AMD (1.81) is worse than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
AMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.10%, which is quite impressive.
The Earnings Per Share has been growing by 38.99% on average over the past years. This is a very strong growth
Looking at the last year, AMD shows a very strong growth in Revenue. The Revenue has grown by 27.17%.
AMD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.81% yearly.
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.
Based on estimates for the next years, AMD will show a quite strong growth in Revenue. The Revenue will grow by 18.71% on average per year.
EPS Next Y18.92%
EPS Next 2Y34.26%
EPS Next 3Y31.88%
EPS Next 5Y26.28%
Revenue Next Year28.86%
Revenue Next 2Y24.98%
Revenue Next 3Y22.7%
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
A Price/Earnings ratio of 48.30 indicates a quite expensive valuation of AMD.
The rest of the industry has a similar Price/Earnings ratio as AMD.
Compared to an average S&P500 Price/Earnings ratio of 27.08, AMD is valued quite expensively.
With a Price/Forward Earnings ratio of 27.84, AMD can be considered very expensive at the moment.
AMD's Price/Forward Earnings is on the same level as the industry average.
AMD's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.3 | ||
| Fwd PE | 27.84 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AMD.
AMD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.88 | ||
| EV/EBITDA | 48.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 31.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.55
PEG (5Y)1.24
EPS Next 2Y34.26%
EPS Next 3Y31.88%
5. Dividend
5.1 Amount
AMD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
166.62
+3.26 (+2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners68.07%
Inst Owner Change-0.88%
Ins Owners0.33%
Ins Owner Change1.15%
Market Cap270.40B
Analysts76.21
Price Target187.64 (12.62%)
Short Float %2.61%
Short Ratio0.7
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)27.91%
PT rev (3m)37.18%
EPS NQ rev (1m)1.56%
EPS NQ rev (3m)-6.16%
EPS NY rev (1m)0.56%
EPS NY rev (3m)-1.37%
Revenue NQ rev (1m)5.54%
Revenue NQ rev (3m)6.07%
Revenue NY rev (1m)3.76%
Revenue NY rev (3m)4.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.3 | ||
| Fwd PE | 27.84 | ||
| P/S | 9.14 | ||
| P/FCF | 66.88 | ||
| P/OCF | 55.44 | ||
| P/B | 4.53 | ||
| P/tB | 16.12 | ||
| EV/EBITDA | 48.43 |
EPS(TTM)3.45
EY2.07%
EPS(NY)5.98
Fwd EY3.59%
FCF(TTM)2.49
FCFY1.5%
OCF(TTM)3.01
OCFY1.8%
SpS18.24
BVpS36.77
TBVpS10.33
PEG (NY)2.55
PEG (5Y)1.24
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%
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-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 | 11.52 |
F-Score6
WACC11.7%
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 Y18.92%
EPS Next 2Y34.26%
EPS Next 3Y31.88%
EPS Next 5Y26.28%
Revenue 1Y (TTM)27.17%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%31.71%
Revenue Next Year28.86%
Revenue Next 2Y24.98%
Revenue Next 3Y22.7%
Revenue Next 5Y18.71%
EBIT growth 1Y191.83%
EBIT growth 3Y-17.55%
EBIT growth 5Y28.98%
EBIT Next Year20.02%
EBIT Next 3Y29.97%
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%