GLOBALFOUNDRIES INC (GFS) Stock Fundamental Analysis
NASDAQ:GFS - Nasdaq - KYG393871085 - Common Stock - Currency: USD
Overall GFS gets a fundamental rating of 4 out of 10. We evaluated GFS against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. GFS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. GFS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year GFS was profitable.
In the past year GFS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: GFS reported negative net income in multiple years.
GFS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GFS's Return On Assets of -1.14% is on the low side compared to the rest of the industry. GFS is outperformed by 60.00% of its industry peers.
With a Return On Equity value of -1.70%, GFS is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
The Return On Invested Capital of GFS (4.12%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for GFS is below the industry average of 10.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.14% | ||
| ROE | -1.7% | ||
| ROIC | 4.12% |
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
Looking at the Operating Margin, with a value of 10.79%, GFS is in the better half of the industry, outperforming 66.36% of the companies in the same industry.
GFS has a worse Gross Margin (23.77%) than 77.27% of its industry peers.
GFS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.79% | ||
| 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
GFS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
GFS has about the same amout of shares outstanding than it did 1 year ago.
GFS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for GFS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.02 indicates that GFS is not a great score, but indicates only limited risk for bankruptcy at the moment.
GFS has a Altman-Z score of 2.02. This is in the lower half of the industry: GFS underperforms 64.55% of its industry peers.
The Debt to FCF ratio of GFS is 1.63, which is an excellent value as it means it would take GFS, only 1.63 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.63, GFS is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
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 | 1.63 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.44
WACC9.33%
2.3 Liquidity
A Current Ratio of 2.51 indicates that GFS has no problem at all paying its short term obligations.
GFS has a Current ratio of 2.51. This is in the lower half of the industry: GFS underperforms 61.82% of its industry peers.
GFS has a Quick Ratio of 1.77. This is a normal value and indicates that GFS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.77, GFS is doing worse than 64.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
GFS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.67%.
Looking at the last year, GFS shows a decrease in Revenue. The Revenue has decreased by -4.42% in the last year.
GFS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.03% yearly.
EPS 1Y (TTM)-21.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%9.68%
Revenue 1Y (TTM)-4.42%
Revenue growth 3Y0.83%
Revenue growth 5Y3.03%
Sales Q2Q%2.32%
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 20.72% on average per year.
GFS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.96% yearly.
EPS Next Y3.69%
EPS Next 2Y18.49%
EPS Next 3Y20.05%
EPS Next 5Y20.72%
Revenue Next Year2.6%
Revenue Next 2Y6.07%
Revenue Next 3Y6.75%
Revenue Next 5Y9.96%
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
With a Price/Earnings ratio of 23.73, GFS is valued on the expensive side.
Based on the Price/Earnings ratio, GFS is valued a bit cheaper than 70.91% of the companies in the same industry.
GFS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.52.
The Price/Forward Earnings ratio is 17.23, which indicates a rather expensive current valuation of GFS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GFS indicates a somewhat cheap valuation: GFS is cheaper than 68.18% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.25, GFS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.73 | ||
| Fwd PE | 17.23 |
4.2 Price Multiples
GFS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GFS is cheaper than 90.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GFS is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.91 | ||
| EV/EBITDA | 8.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GFS's earnings are expected to grow with 20.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.43
PEG (5Y)N/A
EPS Next 2Y18.49%
EPS Next 3Y20.05%
5. Dividend
5.1 Amount
GFS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
37.73
+0.22 (+0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.99%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap20.93B
Analysts74.78
Price Target47.66 (26.32%)
Short Float %1.63%
Short Ratio4.28
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)10.91%
Min EPS beat(2)2.49%
Max EPS beat(2)19.32%
EPS beat(4)4
Avg EPS beat(4)19.98%
Min EPS beat(4)2.49%
Max EPS beat(4)33.38%
EPS beat(8)8
Avg EPS beat(8)17.5%
EPS beat(12)12
Avg EPS beat(12)16.72%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.74%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)-0.56%
Revenue beat(4)1
Avg Revenue beat(4)-0.41%
Min Revenue beat(4)-0.92%
Max Revenue beat(4)0.06%
Revenue beat(8)2
Avg Revenue beat(8)-0.37%
Revenue beat(12)5
Avg Revenue beat(12)-0.24%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.87%
PT rev (3m)-3.33%
EPS NQ rev (1m)1.21%
EPS NQ rev (3m)2.18%
EPS NY rev (1m)-2.64%
EPS NY rev (3m)-2.22%
Revenue NQ rev (1m)0.95%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)-0.74%
Revenue NY rev (3m)-1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.73 | ||
| Fwd PE | 17.23 | ||
| P/S | 3.08 | ||
| P/FCF | 20.91 | ||
| P/OCF | 13.37 | ||
| P/B | 1.89 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 8.09 |
EPS(TTM)1.59
EY4.21%
EPS(NY)2.19
Fwd EY5.8%
FCF(TTM)1.8
FCFY4.78%
OCF(TTM)2.82
OCFY7.48%
SpS12.23
BVpS19.93
TBVpS18.59
PEG (NY)6.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.14% | ||
| ROE | -1.7% | ||
| ROCE | 5.21% | ||
| ROIC | 4.12% | ||
| ROICexc | 5.18% | ||
| ROICexgc | 5.54% | ||
| OM | 10.79% | ||
| PM (TTM) | N/A | ||
| GM | 23.77% | ||
| FCFM | 14.75% |
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-Score6
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.63 | ||
| Debt/EBITDA | 0.66 | ||
| Cap/Depr | 36.91% | ||
| Cap/Sales | 8.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z | 2.02 |
F-Score6
WACC9.33%
ROIC/WACC0.44
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)-21.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%9.68%
EPS Next Y3.69%
EPS Next 2Y18.49%
EPS Next 3Y20.05%
EPS Next 5Y20.72%
Revenue 1Y (TTM)-4.42%
Revenue growth 3Y0.83%
Revenue growth 5Y3.03%
Sales Q2Q%2.32%
Revenue Next Year2.6%
Revenue Next 2Y6.07%
Revenue Next 3Y6.75%
Revenue Next 5Y9.96%
EBIT growth 1Y-30.42%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year170.7%
EBIT Next 3Y51.16%
EBIT Next 5Y32.12%
FCF growth 1Y199.01%
FCF growth 3Y0.75%
FCF growth 5YN/A
OCF growth 1Y-30.69%
OCF growth 3Y-15.35%
OCF growth 5Y28.22%