ADVANCED MICRO DEVICES (AMD) Stock Fundamental Analysis
USA - NASDAQ:AMD - US0079031078 - Common Stock
256.33 USD
+6.28 (+2.51%)
255.51 USD
-0.82 (-0.32%)
Taking everything into account, AMD scores 6 out of 10 in our fundamental rating. AMD was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. While AMD has a great profitability rating, there are some minor concerns on its financial health. AMD is valued quite expensive, but it does show an excellent growth. With these ratings, AMD could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
AMD had positive earnings in the past year.
In the past year AMD had a positive cash flow from operations.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.79%, AMD is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
The Return On Equity of AMD (4.75%) is better than 60.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.02%, AMD is in line with its industry, outperforming 56.25% of the companies in the same 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 11.04%.
The 3 year average ROIC (1.56%) for AMD is below the current ROIC(3.02%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 9.57%, AMD is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
AMD's Profit Margin has improved in the last couple of years.
AMD's Operating Margin of 8.20% is fine compared to the rest of the industry. AMD outperforms 63.39% of its industry peers.
AMD's Operating Margin has been stable in the last couple of years.
AMD has a Gross Margin of 47.62%. This is comparable to the rest of the industry: AMD outperforms 57.14% of its industry peers.
In the last couple of years the Gross Margin of AMD has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AMD is destroying value.
The number of shares outstanding for AMD has been increased compared to 1 year ago.
The number of shares outstanding for AMD has been increased compared to 5 years ago.
The debt/assets ratio for AMD has been reduced compared to a year ago.
2.2 Solvency
AMD has an Altman-Z score of 16.88. This indicates that AMD is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 16.88, AMD belongs to the best of the industry, outperforming 84.82% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 0.80, AMD is doing good in the industry, outperforming 77.68% of the companies in the same industry.
AMD has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AMD (0.05) is better than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 16.88 |
ROIC/WACC0.26
WACC11.76%
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.
AMD has a Current ratio (2.49) which is comparable to the rest of the 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.33% over the past year.
AMD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.99% yearly.
The Revenue has grown by 13.69% in the past year. This is quite good.
Measured over the past years, AMD shows a very strong growth in Revenue. The Revenue has been growing by 30.81% on average per year.
EPS 1Y (TTM)24.33%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%30.43%
Revenue 1Y (TTM)13.69%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%35.59%
3.2 Future
AMD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.88% yearly.
AMD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.77% yearly.
EPS Next Y18.93%
EPS Next 2Y38.26%
EPS Next 3Y42.79%
EPS Next 5Y28.88%
Revenue Next Year29.04%
Revenue Next 2Y28.15%
Revenue Next 3Y31.16%
Revenue Next 5Y22.77%
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
Based on the Price/Earnings ratio of 68.72, the valuation of AMD can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AMD is on the same level as its industry peers.
When comparing the Price/Earnings ratio of AMD to the average of the S&P500 Index (26.13), we can say AMD is valued expensively.
The Price/Forward Earnings ratio is 40.39, which means the current valuation is very expensive for AMD.
The rest of the industry has a similar Price/Forward Earnings ratio as AMD.
When comparing the Price/Forward Earnings ratio of AMD to the average of the S&P500 Index (22.35), we can say AMD is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.72 | ||
| Fwd PE | 40.39 |
4.2 Price Multiples
AMD's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 102.89 | ||
| EV/EBITDA | 73.87 |
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.
A more expensive valuation may be justified as AMD's earnings are expected to grow with 42.79% in the coming years.
PEG (NY)3.63
PEG (5Y)1.76
EPS Next 2Y38.26%
EPS Next 3Y42.79%
5. Dividend
5.1 Amount
No dividends for AMD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
256.33
+6.28 (+2.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.37%
Inst Owner Change-1.03%
Ins Owners0.34%
Ins Owner Change1.13%
Market Cap415.98B
Revenue(TTM)25.79B
Net Income(TTM)2.83B
Analysts79.32
Price Target245.38 (-4.27%)
Short Float %2.41%
Short Ratio0.66
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)30.33%
PT rev (3m)67.27%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)1.23%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)5.52%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)2.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.72 | ||
| Fwd PE | 40.39 | ||
| P/S | 14.05 | ||
| P/FCF | 102.89 | ||
| P/OCF | 85.29 | ||
| P/B | 6.97 | ||
| P/tB | 24.81 | ||
| EV/EBITDA | 73.87 |
EPS(TTM)3.73
EY1.46%
EPS(NY)6.35
Fwd EY2.48%
FCF(TTM)2.49
FCFY0.97%
OCF(TTM)3.01
OCFY1.17%
SpS18.24
BVpS36.77
TBVpS10.33
PEG (NY)3.63
PEG (5Y)1.76
Graham Number55.55
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%
ROICexgc growth 3Y-44.61%
ROICexgc 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 | 27.71% | ||
| Cap/Sales | 2.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.68% | ||
| Profit Quality | 142.66% | ||
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z | 16.88 |
F-Score6
WACC11.76%
ROIC/WACC0.26
Cap/Depr(3y)15.78%
Cap/Depr(5y)43.11%
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)24.33%
EPS 3Y5.84%
EPS 5Y38.99%
EPS Q2Q%30.43%
EPS Next Y18.93%
EPS Next 2Y38.26%
EPS Next 3Y42.79%
EPS Next 5Y28.88%
Revenue 1Y (TTM)13.69%
Revenue growth 3Y16.2%
Revenue growth 5Y30.81%
Sales Q2Q%35.59%
Revenue Next Year29.04%
Revenue Next 2Y28.15%
Revenue Next 3Y31.16%
Revenue Next 5Y22.77%
EBIT growth 1Y191.83%
EBIT growth 3Y-17.55%
EBIT growth 5Y28.98%
EBIT Next Year15.36%
EBIT Next 3Y26.98%
EBIT Next 5Y32.7%
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%
ADVANCED MICRO DEVICES / AMD FAQ
Can you provide the ChartMill fundamental rating for ADVANCED MICRO DEVICES?
ChartMill assigns a fundamental rating of 6 / 10 to AMD.
What is the valuation status for AMD stock?
ChartMill assigns a valuation rating of 3 / 10 to ADVANCED MICRO DEVICES (AMD). This can be considered as Overvalued.
Can you provide the profitability details for ADVANCED MICRO DEVICES?
ADVANCED MICRO DEVICES (AMD) has a profitability rating of 7 / 10.
How financially healthy is ADVANCED MICRO DEVICES?
The financial health rating of ADVANCED MICRO DEVICES (AMD) is 6 / 10.
What is the earnings growth outlook for ADVANCED MICRO DEVICES?
The Earnings per Share (EPS) of ADVANCED MICRO DEVICES (AMD) is expected to grow by 18.93% in the next year.