Advanced Micro Devices, Inc. Fundamental Analysis (NEO: AMD.NE)
Advanced Micro Devices, Inc. (NEO: AMD.NE) shows moderate financial fundamentals with a PE ratio of 2.96, profit margin of 15.58%, and ROE of 10.08%. The company generates $2068.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze AMD.NE's fundamental strength across five key dimensions:
Efficiency Score
WeakAMD.NE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAMD.NE trades at attractive valuation levels.
Growth Score
ModerateAMD.NE shows steady but slowing expansion.
Financial Health Score
ExcellentAMD.NE maintains a strong and stable balance sheet.
Profitability Score
ModerateAMD.NE maintains healthy but balanced margins.
Key Financial Metrics
Is AMD.NE Expensive or Cheap?
P/E Ratio
AMD.NE trades at 2.96 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AMD.NE's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Advanced Micro Devices, Inc. at 0.23 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 76.88 times EBITDA. This signals the market has high growth expectations.
How Well Does AMD.NE Make Money?
Net Profit Margin
For every $100 in sales, Advanced Micro Devices, Inc. keeps $15.58 as profit after all expenses.
Operating Margin
Core operations generate 15.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.08 in profit for every $100 of shareholder equity.
ROA
Advanced Micro Devices, Inc. generates $7.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Advanced Micro Devices, Inc. produces operating cash flow of $501.61B, showing steady but balanced cash generation.
Free Cash Flow
Advanced Micro Devices, Inc. generates strong free cash flow of $418.82B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.13 in free cash annually.
FCF Yield
AMD.NE converts 1.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
18.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How AMD.NE Stacks Against Its Sector Peers
| Metric | AMD.NE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.96 | 33.86 | Better (Cheaper) |
| ROE | 10.08% | 863.00% | Weak |
| Net Margin | 15.58% | -1938.00% (disorted) | Strong |
| Debt/Equity | 0.06 | 0.61 | Strong (Low Leverage) |
| Current Ratio | 2.61 | 12.88 | Strong Liquidity |
| ROA | 7.63% | 99.00% | Weak |
AMD.NE outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Advanced Micro Devices, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta