GLOBALFOUNDRIES (NasdaqGS:GFS) - Share price, News & Analysis

GFS fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	3/6
Financial Health	4/6
Dividends	0/6

GFS Stock Overview

GLOBALFOUNDRIES Inc. operates as a semiconductor foundry worldwide.

Rewards

Trading at 47.2% below our estimate of its fair value

Earnings are forecast to grow 30.62% per year

Became profitable this year

Risk Analysis

No risks detected for GFS from our risk checks.

GLOBALFOUNDRIES Competitors

NVIDIA

NasdaqGS:NVDA

US$443.4b

Broadcom

NasdaqGS:AVGO

US$240.2b

Intel

NasdaqGS:INTC

US$178.3b

Texas Instruments

NasdaqGS:TXN

US$156.5b

Price History & Performance

Summary of all time highs, changes and price drops for GLOBALFOUNDRIES
Historical stock prices
Current Share Price	US$52.77
52 Week High	US$79.49
52 Week Low	US$43.59
Beta	0
1 Month Change	1.29%
3 Month Change	-3.12%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	13.73%

Recent News & Updates

May 04

GlobalFoundries: Profiting From The Supply Crunch

GlobalFoundries has enjoyed double-digit revenue growth due to high demand amid a low supply of the less advanced chips. Comparison with Taiwanese UMC shows that subsidies through the CHIPS act can improve the company's gross margins, with GFS having the ability to add capacity faster than its giant peer. On the other hand, higher labor costs could impact operating margins, but these have already been considered in the first quarter 2022 guidance. The company also has a small revenue exposure to China, but its factories are positioned appropriately to circumvent geopolitically sensitive Taiwan. GFS is a buy due to its cash-generating capability and its low price to cash flow multiple, and its stock could move higher following updates on subsidies.

Shareholder Returns

	GFS	US Semiconductor	US Market
7D	-6.4%	-1.4%	-2.5%
1Y	n/a	4.6%	-10.4%

Return vs Industry: Insufficient data to determine how GFS performed against the US Semiconductor industry.

Return vs Market: Insufficient data to determine how GFS performed against the US Market.

Price Volatility

Is GFS's price volatile compared to industry and market?
GFS volatility
GFS Average Weekly Movement	11.2%
Semiconductor Industry Average Movement	8.6%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	2.8%

Stable Share Price: GFS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: GFS's weekly volatility (11%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2009	14,600	Tom Caulfield	https://www.globalfoundries.com

GLOBALFOUNDRIES Inc. operates as a semiconductor foundry worldwide. It manufactures integrated circuits, which enable various electronic devices that are pervasive. The company manufactures a range of semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, power management units, and microelectromechanical systems, as well as offers mainstream wafer fabrication services and technologies.

GLOBALFOUNDRIES Fundamentals Summary

How do GLOBALFOUNDRIES's earnings and revenue compare to its market cap?
GFS fundamental statistics
Market Cap	US$28.07b
Earnings (TTM)	US$54.69m
Revenue (TTM)	US$7.11b

513.2x

P/E Ratio

3.9x

P/S Ratio

Is GFS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GFS income statement (TTM)
Revenue	US$7.11b
Cost of Revenue	US$5.72b
Gross Profit	US$1.38b
Other Expenses	US$1.33b
Earnings	US$54.69m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.10
Gross Margin	19.46%
Net Profit Margin	0.77%
Debt/Equity Ratio	25.3%

How did GFS perform over the long term?

See historical performance and comparison

Valuation

Is GLOBALFOUNDRIES undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

47.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: GFS ($52.77) is trading below our estimate of fair value ($99.92)

Significantly Below Fair Value: GFS is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: GFS is poor value based on its PE Ratio (513.2x) compared to the US Semiconductor industry average (18.7x).

PE vs Market: GFS is poor value based on its PE Ratio (513.2x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: GFS is poor value based on its PEG Ratio (16.8x)

Price to Book Ratio

PB vs Industry: GFS's PB Ratio (3.4x) is in line with the US Semiconductor industry average.

Future Growth

How is GLOBALFOUNDRIES forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

30.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: GFS's forecast earnings growth (30.6% per year) is above the savings rate (1.9%).

Earnings vs Market: GFS's earnings (30.6% per year) are forecast to grow faster than the US market (12.6% per year).

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

Revenue vs Market: GFS's revenue (8.7% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: GFS's revenue (8.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: GFS's Return on Equity is forecast to be low in 3 years time (17.7%).

Past Performance

How has GLOBALFOUNDRIES performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

61.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GFS has high quality earnings.

Growing Profit Margin: GFS became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: GFS has become profitable over the past 5 years, growing earnings by 61.8% per year.

Accelerating Growth: GFS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GFS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Semiconductor industry (77.9%).

Return on Equity

High ROE: GFS's Return on Equity (0.6%) is considered low.

Financial Health

How is GLOBALFOUNDRIES's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: GFS's short term assets ($5.7B) exceed its short term liabilities ($3.3B).

Long Term Liabilities: GFS's short term assets ($5.7B) exceed its long term liabilities ($4.2B).

Debt to Equity History and Analysis

Debt Level: GFS has more cash than its total debt.

Reducing Debt: Insufficient data to determine if GFS's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: GFS's debt is well covered by operating cash flow (167.5%).

Interest Coverage: GFS's interest payments on its debt are not well covered by EBIT (2.8x coverage).

Balance Sheet

Dividend

What is GLOBALFOUNDRIES current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as GFS has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Semiconductors industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure

CEO

Tom Caulfield (62 yo)

4.17yrs

Tenure

Dr. Thomas H. Caulfield, also known as Tom, Ph D., DES, serves as an Independent Director at Western Digital Corporation since July 6, 2021. He has been Chief Executive Officer of GLOBALFOUNDRIES Inc., sin...

Leadership Team

Experienced Management: GFS's management team is considered experienced (3.7 years average tenure).

Board Members

Experienced Board: GFS's board of directors are considered experienced (4.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: GFS only recently listed within the past 12 months.

Data	Last Updated (UTC time)
Company Analysis	2022/05/15 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31