ADVANCED MICRO DEVICES (AMD) Stock Fundamental Analysis
NASDAQ:AMD - Nasdaq - US0079031078 - Common Stock - Currency: USD
Taking everything into account, AMD scores 6 out of 10 in our fundamental rating. AMD was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. AMD has an average financial health and profitability rating. AMD is not overvalued while it is showing excellent growth. This is an interesting combination. This makes AMD very considerable for growth investing!
1. Profitability
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.
Each year in the past 5 years AMD had a positive operating cash flow.
1.2 Ratios
AMD's Return On Assets of 3.11% is in line compared to the rest of the industry. AMD outperforms 57.27% of its industry peers.
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.
AMD has a Return On Invested Capital of 3.52%. This is comparable to the rest of the industry: AMD outperforms 53.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMD is significantly below the industry average of 11.17%.
The last Return On Invested Capital (3.52%) for AMD is above the 3 year average (1.56%), which is a sign of increasing profitability.
| 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 Profit Margin of 8.03%. This is in the better half of the industry: AMD outperforms 61.82% 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 10.17%, AMD is doing good in the industry, outperforming 61.82% 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.
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.
AMD's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AMD is destroying value.
AMD has more shares outstanding than it did 1 year ago.
AMD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AMD has an improved debt to assets ratio.
2.2 Solvency
AMD has an Altman-Z score of 8.86. This indicates that AMD is financially healthy and has little risk of bankruptcy at the moment.
AMD has a better Altman-Z score (8.86) than 77.27% 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.
AMD has a better Debt to FCF ratio (1.51) than 70.91% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that AMD is not too dependend on debt financing.
AMD has a Debt to Equity ratio (0.07) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 8.86 |
ROIC/WACC0.31
WACC11.43%
2.3 Liquidity
A Current Ratio of 2.80 indicates that AMD has no problem at all paying its short term obligations.
AMD has a Current ratio of 2.80. This is comparable to the rest of the industry: AMD outperforms 48.18% of its industry peers.
AMD has a Quick Ratio of 1.97. This is a normal value and indicates that AMD is financially healthy and should not expect problems in meeting its short term obligations.
AMD has a Quick ratio of 1.97. This is comparable to the rest of the industry: AMD outperforms 43.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.8 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.08% over the past year.
Measured over the past years, AMD shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.99% on average per year.
Looking at the last year, AMD shows a very strong growth in Revenue. The Revenue has grown by 21.71%.
AMD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.81% yearly.
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
Based on estimates for the next years, AMD will show a very strong growth in Earnings Per Share. The EPS will grow by 27.14% on average per year.
AMD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.77% yearly.
EPS Next Y20.57%
EPS Next 2Y30.95%
EPS Next 3Y27.34%
EPS Next 5Y27.14%
Revenue Next Year23.39%
Revenue Next 2Y20.25%
Revenue Next 3Y19.04%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 30.62, AMD can be considered very expensive at the moment.
AMD's Price/Earnings ratio is a bit cheaper when compared to the industry. AMD is cheaper than 61.82% of the companies in the same industry.
AMD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.03.
With a Price/Forward Earnings ratio of 19.68, AMD is valued on the expensive side.
Based on the Price/Forward Earnings ratio, AMD is valued a bit cheaper than 66.36% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.94. AMD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.62 | ||
| Fwd PE | 19.68 |
4.2 Price Multiples
AMD's Enterprise Value to EBITDA ratio is in line with the industry average.
AMD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.79 | ||
| EV/EBITDA | 30.04 |
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 27.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.49
PEG (5Y)0.79
EPS Next 2Y30.95%
EPS Next 3Y27.34%
5. Dividend
5.1 Amount
No dividends for AMD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
112.06
-1.45 (-1.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.95%
Inst Owner Change-2.04%
Ins Owners0.33%
Ins Owner Change0.33%
Market Cap181.12B
Analysts75.27
Price Target136.78 (22.06%)
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)-39.92%
EPS NQ rev (3m)-40.39%
EPS NY rev (1m)-12.11%
EPS NY rev (3m)-14.25%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.62 | ||
| Fwd PE | 19.68 | ||
| P/S | 6.53 | ||
| P/FCF | 65.79 | ||
| P/OCF | 52.36 | ||
| P/B | 3.13 | ||
| P/tB | 12.34 | ||
| EV/EBITDA | 30.04 |
EPS(TTM)3.66
EY3.27%
EPS(NY)5.69
Fwd EY5.08%
FCF(TTM)1.7
FCFY1.52%
OCF(TTM)2.14
OCFY1.91%
SpS17.17
BVpS35.81
TBVpS9.08
PEG (NY)1.49
PEG (5Y)0.79
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 | 8.86 |
F-Score7
WACC11.43%
ROIC/WACC0.31
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 Y20.57%
EPS Next 2Y30.95%
EPS Next 3Y27.34%
EPS Next 5Y27.14%
Revenue 1Y (TTM)21.71%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%35.9%
Revenue Next Year23.39%
Revenue Next 2Y20.25%
Revenue Next 3Y19.04%
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%