GLOBALFOUNDRIES INC (GFS)
KYG393871085 - Common Stock
Taking everything into account, GFS scores 4 out of 10 in our fundamental rating. GFS was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. There are concerns on the financial health of GFS while its profitability can be described as average. GFS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
GFS had positive earnings in the past year.
In the past year GFS had a positive cash flow from operations.
In multiple years GFS reported negative net income over the last 5 years.
GFS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
GFS has a better Return On Assets (7.91%) than 68.87% of its industry peers.
GFS has a better Return On Equity (13.09%) than 70.75% of its industry peers.
GFS has a better Return On Invested Capital (6.54%) than 62.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.91% | ||
| ROE | 13.09% | ||
| ROIC | 6.54% |
ROA(3y)4.03%
ROA(5y)-1.66%
ROE(3y)6.88%
ROE(5y)-2.67%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of GFS (18.48%) is better than 72.64% of its industry peers.
GFS has a better Operating Margin (16.35%) than 68.87% of its industry peers.
GFS has a worse Gross Margin (28.77%) than 71.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.35% | ||
| PM (TTM) | 18.48% | ||
| GM | 28.77% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
GFS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
GFS has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, GFS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.10 indicates that GFS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GFS (2.10) is worse than 64.15% of its industry peers.
GFS has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
GFS has a Debt to Equity ratio of 0.23. This is comparable to the rest of the industry: GFS outperforms 47.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.1 |
ROIC/WACC0.57
WACC11.5%
2.3 Liquidity
GFS has a Current Ratio of 2.11. This indicates that GFS is financially healthy and has no problem in meeting its short term obligations.
GFS has a Current ratio of 2.11. This is in the lower half of the industry: GFS underperforms 69.81% of its industry peers.
A Quick Ratio of 1.56 indicates that GFS should not have too much problems paying its short term obligations.
The Quick ratio of GFS (1.56) is worse than 68.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 64.32% over the past year.
The Revenue has decreased by -2.74% in the past year.
GFS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.59% yearly.
EPS 1Y (TTM)64.32%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-17.91%
Revenue 1Y (TTM)-2.74%
Revenue growth 3Y15.08%
Revenue growth 5Y3.59%
Revenue growth Q2Q-10.7%
3.2 Future
Based on estimates for the next years, GFS will show a very strong growth in Earnings Per Share. The EPS will grow by 21.10% on average per year.
Based on estimates for the next years, GFS will show a quite strong growth in Revenue. The Revenue will grow by 11.86% on average per year.
EPS Next Y-40.93%
EPS Next 2Y-1.98%
EPS Next 3Y15.94%
EPS Next 5Y21.1%
Revenue Next Year-8.17%
Revenue Next 2Y2.49%
Revenue Next 3Y9.8%
Revenue Next 5Y11.86%
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 15.92 indicates a correct valuation of GFS.
83.96% of the companies in the same industry are more expensive than GFS, based on the Price/Earnings ratio.
GFS is valuated rather cheaply when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
GFS is valuated quite expensively with a Price/Forward Earnings ratio of 36.57.
The rest of the industry has a similar Price/Forward Earnings ratio as GFS.
The average S&P500 Price/Forward Earnings ratio is at 21.49. GFS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 36.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GFS is valued cheaper than 91.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.43 |
4.3 Compensation for Growth
GFS's earnings are expected to grow with 15.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.98%
EPS Next 3Y15.94%
5. Dividend
5.1 Amount
GFS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GLOBALFOUNDRIES INC
NASDAQ:GFS (4/26/2024, 7:00:00 PM)
After market: 48.39 0 (0%)48.39
+0.6 (+1.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap26.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 36.57 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.91% | ||
| ROE | 13.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.35% | ||
| PM (TTM) | 18.48% | ||
| GM | 28.77% | ||
| 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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.56 | ||
| 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)64.32%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-40.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.74%
Revenue growth 3Y15.08%
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