GLOBALFOUNDRIES INC (GFS) Stock Fundamental Analysis
USA - NASDAQ:GFS - KYG393871085 - Common Stock
35.32 USD
+0.15 (+0.43%)
35.9385 USD
+0.62 (+1.75%)
GFS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. GFS has only an average score on both its financial health and profitability. 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.
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 has a Return On Assets (-0.68%) which is in line with its industry peers.
The Return On Equity of GFS (-1.01%) is comparable to the rest of the industry.
The Return On Invested Capital of GFS (4.22%) is better 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 11.03%.
| 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
With a decent Operating Margin value of 11.22%, GFS is doing good in the industry, outperforming 67.86% of the companies in the same industry.
With a Gross Margin value of 23.77%, GFS is not doing good in the industry: 77.68% of the companies in the same industry are doing better.
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.
Compared to 1 year ago, GFS has about the same amount of shares outstanding.
The number of shares outstanding for GFS has been increased compared to 5 years ago.
Compared to 1 year ago, GFS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.94 indicates that GFS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GFS (1.94) is worse than 66.07% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.73, GFS is in the better half of the industry, outperforming 70.54% 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 | 1.73 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.38
WACC11.03%
2.3 Liquidity
A Current Ratio of 2.63 indicates that GFS has no problem at all paying its short term obligations.
GFS has a Current ratio of 2.63. This is comparable to the rest of the industry: GFS outperforms 48.21% of its industry peers.
GFS has a Quick Ratio of 1.92. This is a normal value and indicates that GFS is financially healthy and should not expect problems in meeting its short term obligations.
GFS has a Quick ratio of 1.92. This is comparable to the rest of the industry: GFS outperforms 47.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
The earnings per share for GFS have decreased strongly by -13.30% in the last year.
The Revenue has decreased by -0.65% in the past year.
The Revenue has been growing slightly by 3.03% on average over the past years.
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
GFS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.17% yearly.
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
The Price/Earnings ratio is 21.67, which indicates a rather expensive current valuation of GFS.
Based on the Price/Earnings ratio, GFS is valued cheaply inside the industry as 83.93% of the companies are valued more expensively.
GFS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.70, GFS is valued on the expensive side.
83.93% of the companies in the same industry are more expensive than GFS, based on the Price/Forward Earnings ratio.
GFS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.67 | ||
| Fwd PE | 17.7 |
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.
GFS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GFS is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.17 | ||
| EV/EBITDA | 7.45 |
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 17.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.08
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 |
35.32
+0.15 (+0.43%)
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 Cap19.60B
Revenue(TTM)6.84B
Net Income(TTM)-115000000
Analysts76
Price Target40.57 (14.86%)
Short Float %2.55%
Short Ratio4.74
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)-0.79%
PT rev (3m)-9.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.16%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.67 | ||
| Fwd PE | 17.7 | ||
| P/S | 2.86 | ||
| P/FCF | 20.17 | ||
| P/OCF | 12.3 | ||
| P/B | 1.72 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 7.45 |
EPS(TTM)1.63
EY4.61%
EPS(NY)2
Fwd EY5.65%
FCF(TTM)1.75
FCFY4.96%
OCF(TTM)2.87
OCFY8.13%
SpS12.33
BVpS20.57
TBVpS19.27
PEG (NY)5.08
PEG (5Y)N/A
Graham Number27.47
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
ROICexgc growth 3YN/A
ROICexgc 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 | 1.94 |
F-Score5
WACC11.03%
ROIC/WACC0.38
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%
GLOBALFOUNDRIES INC / GFS FAQ
What is the ChartMill fundamental rating of GLOBALFOUNDRIES INC (GFS) stock?
ChartMill assigns a fundamental rating of 4 / 10 to GFS.
What is the valuation status of GLOBALFOUNDRIES INC (GFS) stock?
ChartMill assigns a valuation rating of 5 / 10 to GLOBALFOUNDRIES INC (GFS). This can be considered as Fairly Valued.
What is the profitability of GFS stock?
GLOBALFOUNDRIES INC (GFS) has a profitability rating of 4 / 10.
What is the valuation of GLOBALFOUNDRIES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GLOBALFOUNDRIES INC (GFS) is 21.67 and the Price/Book (PB) ratio is 1.72.
What is the earnings growth outlook for GLOBALFOUNDRIES INC?
The Earnings per Share (EPS) of GLOBALFOUNDRIES INC (GFS) is expected to grow by 4.27% in the next year.