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GFS

GLOBALFOUNDRIES NasdaqGS:GFS Stock Report

Last Price

US$52.77

Market Cap

US$28.1b

7D

-6.4%

1Y

n/a

Updated

15 May, 2022

Data

Company Financials +
GFS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance3/6
Financial Health4/6
Dividends0/6

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

Price History & Performance

Summary of all time highs, changes and price drops for GLOBALFOUNDRIES
Historical stock prices
Current Share PriceUS$52.77
52 Week HighUS$79.49
52 Week LowUS$43.59
Beta0
1 Month Change1.29%
3 Month Change-3.12%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO13.73%

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

GFSUS SemiconductorUS Market
7D-6.4%-1.4%-2.5%
1Yn/a4.6%-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 Movement11.2%
Semiconductor Industry Average Movement8.6%
Market Average Movement7.8%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market2.8%

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

FoundedEmployeesCEOWebsite
200914,600Tom Caulfieldhttps://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 CapUS$28.07b
Earnings (TTM)US$54.69m
Revenue (TTM)US$7.11b

513.2x

P/E Ratio

3.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GFS income statement (TTM)
RevenueUS$7.11b
Cost of RevenueUS$5.72b
Gross ProfitUS$1.38b
Other ExpensesUS$1.33b
EarningsUS$54.69m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.10
Gross Margin19.46%
Net Profit Margin0.77%
Debt/Equity Ratio25.3%

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

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.


Top Shareholders

Company Information

GLOBALFOUNDRIES Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: GLOBALFOUNDRIES Inc.
  • Ticker: GFS
  • Exchange: NasdaqGS
  • Founded: 2009
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Implied Market Cap: US$28.065b
  • Shares outstanding: 531.85m
  • Website: https://www.globalfoundries.com

Number of Employees


Location

  • GLOBALFOUNDRIES Inc.
  • 400 Stonebreak Road Extension
  • Malta
  • New York
  • 12020
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/15 00:00
End of Day Share Price2022/05/13 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.