ADVANCED MICRO DEVICES (AMD) Stock Fundamental Analysis
NASDAQ:AMD - Nasdaq - US0079031078 - Common Stock - Currency: USD
AMD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make AMD a good candidate 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
The Return On Assets of AMD (3.11%) is comparable to the rest of the industry.
AMD's Return On Equity of 3.85% is in line compared to the rest of the industry. AMD outperforms 52.73% of its industry peers.
The Return On Invested Capital of AMD (3.52%) is comparable to the rest of the industry.
AMD had an Average Return On Invested Capital over the past 3 years of 1.56%. This is significantly below the industry average of 11.30%.
The 3 year average ROIC (1.56%) for AMD is below the current ROIC(3.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 3.85% | ||
| ROIC | 3.52% |
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 (8.03%) than 61.82% of its industry peers.
In the last couple of years the Profit Margin of AMD has grown nicely.
AMD has a Operating Margin of 10.17%. This is in the better half of the industry: AMD outperforms 61.82% of its industry peers.
In the last couple of years the Operating Margin of AMD has remained more or less at the same level.
With a decent Gross Margin value of 50.09%, AMD is doing good in the industry, outperforming 61.82% of the companies in the same industry.
In the last couple of years the Gross Margin of AMD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.17% | ||
| PM (TTM) | 8.03% | ||
| GM | 50.09% |
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
The number of shares outstanding for AMD has been increased compared to 5 years ago.
AMD has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.79 indicates that AMD is not in any danger for bankruptcy at the moment.
The Altman-Z score of AMD (8.79) is better than 79.09% of its industry peers.
The Debt to FCF ratio of AMD is 1.51, which is an excellent value as it means it would take AMD, only 1.51 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AMD (1.51) is better than 71.82% of its industry peers.
AMD has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.07, AMD perfoms like the industry average, outperforming 56.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 8.79 |
ROIC/WACC0.36
WACC9.77%
2.3 Liquidity
AMD has a Current Ratio of 2.80. This indicates that AMD is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.80, AMD perfoms like the industry average, outperforming 48.18% of the companies in the same industry.
A Quick Ratio of 1.97 indicates that AMD should not have too much problems paying its short term obligations.
AMD has a Quick ratio (1.97) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.8 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
AMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.08%, which is quite impressive.
AMD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.99% yearly.
AMD shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.71%.
The Revenue has been growing by 30.81% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)37.08%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%54.84%
Revenue 1Y (TTM)21.71%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%35.9%
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
Based on estimates for the next years, AMD will show a quite strong growth in Revenue. The Revenue will grow by 16.77% on average per year.
EPS Next Y37.18%
EPS Next 2Y34.85%
EPS Next 3Y29.14%
EPS Next 5Y27.14%
Revenue Next Year23.54%
Revenue Next 2Y20.69%
Revenue Next 3Y19.05%
Revenue Next 5Y16.77%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 32.16.
AMD's Price/Earnings ratio is a bit cheaper when compared to the industry. AMD is cheaper than 62.73% of the companies in the same industry.
When comparing the Price/Earnings ratio of AMD to the average of the S&P500 Index (24.85), we can say AMD is valued slightly more expensively.
AMD is valuated rather expensively with a Price/Forward Earnings ratio of 19.50.
69.09% of the companies in the same industry are more expensive than AMD, based on the Price/Forward Earnings ratio.
AMD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.16 | ||
| Fwd PE | 19.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMD is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as AMD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.11 | ||
| EV/EBITDA | 29.75 |
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)0.87
PEG (5Y)0.82
EPS Next 2Y34.85%
EPS Next 3Y29.14%
5. Dividend
5.1 Amount
No dividends for AMD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
117.72
+5.26 (+4.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.95%
Inst Owner Change-0.92%
Ins Owners0.33%
Ins Owner Change0.27%
Market Cap190.27B
Analysts75.27
Price Target136.78 (16.19%)
Short Float %2.55%
Short Ratio1.01
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)2
Avg EPS beat(2)0.47%
Min EPS beat(2)0.13%
Max EPS beat(2)0.8%
EPS beat(4)3
Avg EPS beat(4)0.37%
Min EPS beat(4)-0.5%
Max EPS beat(4)1.03%
EPS beat(8)6
Avg EPS beat(8)0.48%
EPS beat(12)9
Avg EPS beat(12)0.74%
EPS beat(16)13
Avg EPS beat(16)4.67%
Revenue beat(2)2
Avg Revenue beat(2)2.05%
Min Revenue beat(2)0.75%
Max Revenue beat(2)3.35%
Revenue beat(4)4
Avg Revenue beat(4)1.42%
Min Revenue beat(4)0.63%
Max Revenue beat(4)3.35%
Revenue beat(8)5
Avg Revenue beat(8)0.68%
Revenue beat(12)6
Avg Revenue beat(12)0.31%
Revenue beat(16)10
Avg Revenue beat(16)1.49%
PT rev (1m)-7.84%
PT rev (3m)-21.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.53%
EPS NY rev (1m)-2.2%
EPS NY rev (3m)-8.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.11%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.16 | ||
| Fwd PE | 19.5 | ||
| P/S | 6.86 | ||
| P/FCF | 69.11 | ||
| P/OCF | 55.01 | ||
| P/B | 3.29 | ||
| P/tB | 12.96 | ||
| EV/EBITDA | 29.75 |
EPS(TTM)3.66
EY3.11%
EPS(NY)6.04
Fwd EY5.13%
FCF(TTM)1.7
FCFY1.45%
OCF(TTM)2.14
OCFY1.82%
SpS17.17
BVpS35.81
TBVpS9.08
PEG (NY)0.87
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 3.85% | ||
| ROCE | 4.42% | ||
| ROIC | 3.52% | ||
| ROICexc | 3.97% | ||
| ROICexgc | 15.97% | ||
| OM | 10.17% | ||
| PM (TTM) | 8.03% | ||
| GM | 50.09% | ||
| FCFM | 9.92% |
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-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 1.51 | ||
| Debt/EBITDA | 0.7 | ||
| Cap/Depr | 22.71% | ||
| Cap/Sales | 2.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.33% | ||
| Profit Quality | 123.62% | ||
| Current Ratio | 2.8 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z | 8.79 |
F-Score7
WACC9.77%
ROIC/WACC0.36
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)37.08%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%54.84%
EPS Next Y37.18%
EPS Next 2Y34.85%
EPS Next 3Y29.14%
EPS Next 5Y27.14%
Revenue 1Y (TTM)21.71%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%35.9%
Revenue Next Year23.54%
Revenue Next 2Y20.69%
Revenue Next 3Y19.05%
Revenue Next 5Y16.77%
EBIT growth 1Y417.62%
EBIT growth 3Y-17.55%
EBIT growth 5Y28.98%
EBIT Next Year36.57%
EBIT Next 3Y32.91%
EBIT Next 5Y26.02%
FCF growth 1Y9.29%
FCF growth 3Y-9.27%
FCF growth 5Y54.18%
OCF growth 1Y13.19%
OCF growth 3Y-4.77%
OCF growth 5Y43.89%