NasdaqGS:AMD

Stock Analysis Report

Executive Summary

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide.

Snowflake

Fundamentals

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Advanced Micro Devices's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AMD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.3%

AMD

0.09%

US Semiconductor

0.7%

US Market


1 Year Return

86.6%

AMD

34.8%

US Semiconductor

12.9%

US Market

Return vs Industry: AMD exceeded the US Semiconductor industry which returned 34.8% over the past year.

Return vs Market: AMD exceeded the US Market which returned 12.9% over the past year.


Shareholder returns

AMDIndustryMarket
7 Day6.3%0.09%0.7%
30 Day23.8%8.1%4.4%
90 Day23.7%16.3%7.0%
1 Year86.6%86.6%37.6%34.8%15.4%12.9%
3 Year342.7%342.7%88.0%77.4%49.1%39.5%
5 Year1292.1%1292.1%140.2%116.0%62.7%44.7%

Price Volatility Vs. Market

How volatile is Advanced Micro Devices's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Advanced Micro Devices undervalued compared to its fair value and its price relative to the market?

194.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AMD ($38.56) is trading above our estimate of fair value ($22.11)

Significantly Below Fair Value: AMD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AMD is poor value based on its PE Ratio (194.9x) compared to the Semiconductor industry average (30.7x).

PE vs Market: AMD is poor value based on its PE Ratio (194.9x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: AMD is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: AMD is overvalued based on its PB Ratio (19.7x) compared to the US Semiconductor industry average (2.9x).


Next Steps

Future Growth

How is Advanced Micro Devices forecast to perform in the next 1 to 3 years based on estimates from 35 analysts?

36.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMD's forecast earnings growth (36.7% per year) is above the savings rate (2.7%).

Earnings vs Market: AMD's earnings (36.7% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AMD's revenue (16.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: AMD's revenue (16.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMD's Return on Equity is forecast to be high in 3 years time (31.3%)


Next Steps

Past Performance

How has Advanced Micro Devices performed over the past 5 years?

51.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMD has a high level of non-cash earnings.

Growing Profit Margin: AMD's current net profit margins (3.5%) are lower than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: AMD's earnings have grown significantly by 51% per year over the past 5 years.

Accelerating Growth: AMD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AMD had negative earnings growth (-25.2%) over the past year, making it difficult to compare to the Semiconductor industry average (-11.6%).


Return on Equity

High ROE: AMD's Return on Equity (9.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Advanced Micro Devices's financial position?


Financial Position Analysis

Short Term Liabilities: AMD's short term assets ($3.9B) exceeds its short term liabilities ($1.9B)

Long Term Liabilities: AMD's short term assets (3.9B) exceeds its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: AMD's debt to equity ratio (40.1%) is considered high

Reducing Debt: AMD's debt to equity ratio has reduced from 416.8% to 40.1% over the past 5 years.

Debt Coverage: AMD's debt is not well covered by operating cash flow (19.6%).

Interest Coverage: AMD's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

Inventory Level: AMD has a high level of physical assets or inventory.

Debt Coverage by Assets: AMD's debt is covered by short term assets (assets are 4.5x debt).


Next Steps

Dividend

What is Advanced Micro Devices's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AMD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AMD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AMD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AMD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AMD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Advanced Micro Devices's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Lisa Su (49yo)

5.3yrs

Tenure

US$13,356,392

Compensation

Dr. Lisa T. Su has been the Chief Executive Officer and President of Advanced Micro Devices, Inc. since August 10, 2014 and October 2014 respectively. Dr. Su served as Chief Operating Officer of Advanced M ...


CEO Compensation Analysis

Compensation vs Market: Lisa's total compensation ($USD13.36M) is about average for companies of similar size in the US market ($USD11.01M).

Compensation vs Earnings: Lisa's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.5yrs

Average Tenure

53.5yo

Average Age

Experienced Management: AMD's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: AMD's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: AMD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$265,13609 Sep 19
Darla Smith
EntityIndividual
Role
Chief Accounting Officer
Corporate VP & Chief Accounting Officer
Shares8,417
Max PriceUS$31.50
SellUS$1,088,26213 Aug 19
Nora Denzel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares31,737
Max PriceUS$34.29
SellUS$442,20006 Jun 19
Darla Smith
EntityIndividual
Role
Chief Accounting Officer
Corporate VP & Chief Accounting Officer
Shares15,000
Max PriceUS$29.48
SellUS$1,228,08022 Feb 19
Ahmed Al Idrissi
EntityIndividual
Shares51,000
Max PriceUS$24.08
SellUS$817,851,46907 Feb 19
Mamoura Diversified Global Holding PJSC
EntityCompany
Shares34,906,166
Max PriceUS$23.43

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.5%.


Management Team

  • Harry Wolin (56yo)

    Senior VP

    • Tenure: 16.8yrs
    • Compensation: US$2.82m
  • Lisa Su (49yo)

    President

    • Tenure: 5.3yrs
    • Compensation: US$13.36m
  • Mark Papermaster (57yo)

    CTO and Executive VP of Technology & Engineering

    • Tenure: 8.1yrs
    • Compensation: US$4.81m
  • Ruth Cotter

    Senior Vice President of Worldwide Marketing

    • Tenure: 3.7yrs
  • Paul Grasby (49yo)

    Senior VP

    • Tenure: 4yrs
  • Devinder Kumar (63yo)

    Senior VP

    • Tenure: 6.8yrs
    • Compensation: US$3.65m
  • Darla Smith (53yo)

    Corporate VP & Chief Accounting Officer

    • Tenure: 3.5yrs
  • Forrest Norrod (54yo)

    Senior VP and GM of Datacenter & Embedded Solutions Business Group

    • Tenure: 5.1yrs
    • Compensation: US$3.50m
  • Keivan Keshvari

    Senior Vice President of Global Operations

    • Tenure: 1.8yrs
  • Robert Gama (46yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.3yrs

Board Members

  • Nora Denzel (57yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$318.38k
  • John Marren (56yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$303.38k
  • John Caldwell (69yo)

    Independent Chairman of the Board

    • Tenure: 3.5yrs
    • Compensation: US$450.07k
  • W. Sanders (82yo)

    Chairman Emeritus

    • Tenure: 15.8yrs
    • Compensation: US$2.13m
  • Joe Householder (64yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$328.38k
  • Abhi Talwalkar (55yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$303.38k
  • Lisa Su (49yo)

    President

    • Tenure: 5.3yrs
    • Compensation: US$13.36m
  • Mark Durcan (58yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$316.68k

Company Information

Advanced Micro Devices, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Advanced Micro Devices, Inc.
  • Ticker: AMD
  • Exchange: NasdaqGS
  • Founded: 1969
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$42.941b
  • Shares outstanding: 1.11b
  • Website: https://www.amd.com

Number of Employees


Location

  • Advanced Micro Devices, Inc.
  • 2485 Augustine Drive
  • Santa Clara
  • California
  • 95054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1972
AMDDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972
AMDXTRA (XETRA Trading Platform)YesCommon StockDEEURDec 1972
AMD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1972
AMDSWX (SIX Swiss Exchange)YesCommon StockCHCHFDec 1972
0QZDLSE (London Stock Exchange)YesCommon StockGBUSDDec 1972
AMDWBAG (Wiener Boerse AG)YesCommon StockATEURDec 1972
AMDBASE (Buenos Aires Stock Exchange)CEDEARS (EACH 1 REP 2 COM USD0.01)ARARSApr 2019

Biography

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. The company operates in two segments, Computing and Graphics; and Enterprise, Embedded and Semi-Custom. Its products include x86  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 23:30
End of Day Share Price2019/11/15 00:00
Earnings2019/09/28
Annual Earnings2018/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.