GLOBALFOUNDRIES INC (GFS) Stock Fundamental Analysis
USA - NASDAQ:GFS - KYG393871085 - Common Stock
37.03 USD
+1.44 (+4.05%)
37.0897 USD
+0.06 (+0.16%)
Overall GFS gets a fundamental rating of 4 out of 10. We evaluated GFS against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of GFS get a neutral evaluation. Nothing too spectacular is happening here. GFS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
GFS had positive earnings in the past year.
GFS had a positive operating cash flow in the past year.
In multiple years GFS reported negative net income over the last 5 years.
In the past 5 years GFS always reported a positive cash flow from operatings.
1.2 Ratios
GFS has a Return On Assets of -0.68%. This is comparable to the rest of the industry: GFS outperforms 46.43% of its industry peers.
GFS has a Return On Equity (-1.01%) which is comparable to the rest of the industry.
GFS has a better Return On Invested Capital (4.22%) than 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GFS is significantly below the industry average of 10.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.68% | ||
| ROE | -1.01% | ||
| ROIC | 4.22% |
ROA(3y)4.06%
ROA(5y)-0.08%
ROE(3y)7.11%
ROE(5y)-0.12%
ROIC(3y)5.8%
ROIC(5y)N/A
1.3 Margins
The Operating Margin of GFS (11.22%) is better than 67.86% of its industry peers.
GFS has a worse Gross Margin (23.77%) than 77.68% of its industry peers.
GFS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.22% | ||
| PM (TTM) | N/A | ||
| GM | 23.77% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y15.97%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GFS is destroying value.
The number of shares outstanding for GFS remains at a similar level compared to 1 year ago.
The number of shares outstanding for GFS has been increased compared to 5 years ago.
GFS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.06 indicates that GFS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.06, GFS is doing worse than 66.96% of the companies in the same industry.
GFS has a debt to FCF ratio of 1.73. This is a very positive value and a sign of high solvency as it would only need 1.73 years to pay back of all of its debts.
GFS's Debt to FCF ratio of 1.73 is fine compared to the rest of the industry. GFS outperforms 70.54% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that GFS is not too dependend on debt financing.
GFS has a Debt to Equity ratio (0.14) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.73 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.39
WACC10.86%
2.3 Liquidity
GFS has a Current Ratio of 2.63. This indicates that GFS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.63, GFS is in line with its industry, outperforming 48.21% of the companies in the same industry.
A Quick Ratio of 1.92 indicates that GFS should not have too much problems paying its short term obligations.
GFS has a Quick ratio (1.92) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
GFS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.30%.
GFS shows a decrease in Revenue. In the last year, the revenue decreased by -0.65%.
Measured over the past years, GFS shows a small growth in Revenue. The Revenue has been growing by 3.03% on average per year.
EPS 1Y (TTM)-13.3%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%10.53%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y0.83%
Revenue growth 5Y3.03%
Sales Q2Q%3.43%
3.2 Future
The Earnings Per Share is expected to grow by 20.17% on average over the next years. This is a very strong growth
GFS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.56% yearly.
EPS Next Y4.27%
EPS Next 2Y13.11%
EPS Next 3Y17.21%
EPS Next 5Y20.17%
Revenue Next Year0.12%
Revenue Next 2Y4.1%
Revenue Next 3Y6.2%
Revenue Next 5Y9.56%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.72 indicates a rather expensive valuation of GFS.
Based on the Price/Earnings ratio, GFS is valued cheaper than 80.36% of the companies in the same industry.
GFS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.55 indicates a rather expensive valuation of GFS.
Based on the Price/Forward Earnings ratio, GFS is valued cheaper than 82.14% of the companies in the same industry.
GFS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.72 | ||
| Fwd PE | 18.55 |
4.2 Price Multiples
95.54% of the companies in the same industry are more expensive than GFS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GFS is valued cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.14 | ||
| EV/EBITDA | 7.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GFS does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as GFS's earnings are expected to grow with 17.21% in the coming years.
PEG (NY)5.32
PEG (5Y)N/A
EPS Next 2Y13.11%
EPS Next 3Y17.21%
5. Dividend
5.1 Amount
No dividends for GFS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
37.03
+1.44 (+4.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.78%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap20.55B
Analysts76
Price Target40.89 (10.42%)
Short Float %2.14%
Short Ratio5.11
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)16.9%
Min EPS beat(2)16.57%
Max EPS beat(2)17.23%
EPS beat(4)4
Avg EPS beat(4)15.25%
Min EPS beat(4)2.49%
Max EPS beat(4)24.71%
EPS beat(8)8
Avg EPS beat(8)18.57%
EPS beat(12)12
Avg EPS beat(12)15.68%
EPS beat(16)16
Avg EPS beat(16)293.99%
Revenue beat(2)0
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)-0.35%
Revenue beat(4)0
Avg Revenue beat(4)-0.52%
Min Revenue beat(4)-0.92%
Max Revenue beat(4)-0.23%
Revenue beat(8)2
Avg Revenue beat(8)-0.37%
Revenue beat(12)4
Avg Revenue beat(12)-0.29%
Revenue beat(16)7
Avg Revenue beat(16)-0.13%
PT rev (1m)-1.42%
PT rev (3m)-7.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.41%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)2.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.52%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.72 | ||
| Fwd PE | 18.55 | ||
| P/S | 3 | ||
| P/FCF | 21.14 | ||
| P/OCF | 12.89 | ||
| P/B | 1.8 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 7.92 |
EPS(TTM)1.63
EY4.4%
EPS(NY)2
Fwd EY5.39%
FCF(TTM)1.75
FCFY4.73%
OCF(TTM)2.87
OCFY7.76%
SpS12.33
BVpS20.57
TBVpS19.27
PEG (NY)5.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.68% | ||
| ROE | -1.01% | ||
| ROCE | 5.34% | ||
| ROIC | 4.22% | ||
| ROICexc | 5.42% | ||
| ROICexgc | 5.79% | ||
| OM | 11.22% | ||
| PM (TTM) | N/A | ||
| GM | 23.77% | ||
| FCFM | 14.21% |
ROA(3y)4.06%
ROA(5y)-0.08%
ROE(3y)7.11%
ROE(5y)-0.12%
ROIC(3y)5.8%
ROIC(5y)N/A
ROICexc(3y)7.4%
ROICexc(5y)N/A
ROICexgc(3y)7.71%
ROICexgc(5y)N/A
ROCE(3y)7.34%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y15.97%
GM growth 5YN/A
F-Score5
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.73 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 42.57% | ||
| Cap/Sales | 9.09% | ||
| Interest Coverage | 9.04 | ||
| Cash Conversion | 71.51% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.63 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z | 2.06 |
F-Score5
WACC10.86%
ROIC/WACC0.39
Cap/Depr(3y)117.56%
Cap/Depr(5y)97.05%
Cap/Sales(3y)23.8%
Cap/Sales(5y)22.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.3%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%10.53%
EPS Next Y4.27%
EPS Next 2Y13.11%
EPS Next 3Y17.21%
EPS Next 5Y20.17%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y0.83%
Revenue growth 5Y3.03%
Sales Q2Q%3.43%
Revenue Next Year0.12%
Revenue Next 2Y4.1%
Revenue Next 3Y6.2%
Revenue Next 5Y9.56%
EBIT growth 1Y-16.34%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year162.87%
EBIT Next 3Y49.92%
EBIT Next 5Y31.63%
FCF growth 1Y247.05%
FCF growth 3Y0.75%
FCF growth 5YN/A
OCF growth 1Y-27.38%
OCF growth 3Y-15.35%
OCF growth 5Y28.22%