ADVANCED MICRO DEVICES (AMD)
US0079031078 - Common Stock
Taking everything into account, AMD scores 5 out of 10 in our fundamental rating. AMD was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. AMD has an average financial health and profitability rating. While showing a medium growth rate, AMD is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AMD was profitable.
AMD had a positive operating cash flow in the past year.
Each year in the past 5 years AMD has been profitable.
AMD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.64%, AMD perfoms like the industry average, outperforming 49.06% of the companies in the same industry.
AMD's Return On Equity of 1.99% is in line compared to the rest of the industry. AMD outperforms 50.00% of its industry peers.
The Return On Invested Capital of AMD (0.70%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for AMD is in line with the industry average of 10.54%.
The last Return On Invested Capital (0.70%) for AMD is well below the 3 year average (12.36%), which needs to be investigated, but indicates that AMD had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.64% | ||
| ROE | 1.99% | ||
| ROIC | 0.7% |
ROA(3y)9.56%
ROA(5y)12.42%
ROE(3y)15.37%
ROE(5y)20.17%
ROIC(3y)12.36%
ROIC(5y)13.18%
1.3 Margins
AMD has a Profit Margin (4.89%) which is in line with its industry peers.
In the last couple of years the Profit Margin of AMD has declined.
AMD's Operating Margin of 2.39% is in line compared to the rest of the industry. AMD outperforms 47.17% of its industry peers.
In the last couple of years the Operating Margin of AMD has declined.
AMD has a Gross Margin (46.76%) which is comparable to the rest of the industry.
AMD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.39% | ||
| PM (TTM) | 4.89% | ||
| GM | 46.76% |
OM growth 3Y-51.31%
OM growth 5Y-25.32%
PM growth 3Y-47.15%
PM growth 5Y-6.27%
GM growth 3Y1.18%
GM growth 5Y4.06%
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.
Compared to 5 years ago, AMD has more shares outstanding
Compared to 1 year ago, AMD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 13.37 indicates that AMD is not in any danger for bankruptcy at the moment.
AMD has a Altman-Z score of 13.37. This is amongst the best in the industry. AMD outperforms 85.85% of its industry peers.
The Debt to FCF ratio of AMD is 2.11, which is a good value as it means it would take AMD, 2.11 years of fcf income to pay off all of its debts.
AMD has a Debt to FCF ratio of 2.11. This is in the better half of the industry: AMD outperforms 69.81% of its industry peers.
AMD has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
AMD's Debt to Equity ratio of 0.03 is fine compared to the rest of the industry. AMD outperforms 67.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 13.37 |
ROIC/WACC0.06
WACC12.49%
2.3 Liquidity
AMD has a Current Ratio of 2.64. This indicates that AMD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of AMD (2.64) is comparable to the rest of the industry.
AMD has a Quick Ratio of 1.92. 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 1.92. This is comparable to the rest of the industry: AMD outperforms 43.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
The earnings per share for AMD have decreased strongly by -11.30% in the last year.
The Earnings Per Share has been growing by 41.94% on average over the past years. This is a very strong growth
AMD shows a decrease in Revenue. In the last year, the revenue decreased by -1.16%.
The Revenue has been growing by 28.49% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-11.3%
EPS 3Y27.12%
EPS 5Y41.94%
EPS growth Q2Q3.33%
Revenue 1Y (TTM)-1.16%
Revenue growth 3Y32.44%
Revenue growth 5Y28.49%
Revenue growth Q2Q2.24%
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 32.66% on average per year.
The Revenue is expected to grow by 16.88% on average over the next years. This is quite good.
EPS Next Y38.11%
EPS Next 2Y44.35%
EPS Next 3Y39.9%
EPS Next 5Y32.66%
Revenue Next Year13.9%
Revenue Next 2Y19.79%
Revenue Next 3Y20.32%
Revenue Next 5Y16.88%
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
The Price/Earnings ratio is 57.34, which means the current valuation is very expensive for AMD.
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 28.11.
Based on the Price/Forward Earnings ratio of 27.73, the valuation of AMD can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMD indicates a somewhat cheap valuation: AMD is cheaper than 62.26% of the companies listed in the same industry.
AMD is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.34 | ||
| Fwd PE | 27.73 |
4.2 Price Multiples
AMD's Enterprise Value to EBITDA ratio is in line with the industry average.
AMD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 211.12 | ||
| EV/EBITDA | 64.25 |
4.3 Compensation for Growth
AMD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AMD's earnings are expected to grow with 39.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.5
PEG (5Y)1.37
EPS Next 2Y44.35%
EPS Next 3Y39.9%
5. Dividend
5.1 Amount
AMD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ADVANCED MICRO DEVICES
NASDAQ:AMD (5/8/2024, 2:08:09 PM)
153.1
-1.33 (-0.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
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Ins Owners
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Market Cap247.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.34 | ||
| Fwd PE | 27.73 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.5
PEG (5Y)1.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.64% | ||
| ROE | 1.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.39% | ||
| PM (TTM) | 4.89% | ||
| GM | 46.76% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-11.3%
EPS 3Y27.12%
EPS 5Y
EPS growth Q2Q
EPS Next Y38.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.16%
Revenue growth 3Y32.44%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y