AMD  Advanced Micro Devices Inc.

Exchange

NYSE

Sector

Technology

Industry

Semiconductors

Market Cap.

10.40B

Vuru Grade

11.01/100

Current Price

$11.00
+0.02 (+0.18%)

Growth Price

$0.60
Overvalued by 94.56%

Stability Price

$0.58
Overvalued by 94.75%

Company Metrics

  • P/E 37.12
  • P/S 2.35
  • P/B 25.30
  • EPS -0.53
  • Cash ROIC -18.37%
  • Cash Ratio 0.94
  • Dividend 0.00 / 0.00 %
  • Avg. Vol. 71.13M
  • Shares 835.00M
  • Market Cap. 10.40B

Company Description

Advanced Micro Devices, Inc. operates as a semiconductor company in the United States, Japan, China, and Europe. Its microprocessors for server platforms include multi-core AMD Opteron processors; notebook PC platforms consist of the AMD Dual-Core Accelerated Processor E-350, AMD Dual-Core Accelerated Processor C-50, AMD Phenom II Dual-Core Mobile Processor, AMD Phenom II Quad-Core Mobile Processo... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Advanced Micro Devices, Inc.: The Worst Performing Stock In The S&P 500
Seeking Alpha - May 25, 2017
Advanced Micro Devices, Inc. (NASDAQ:AMD) has warranted a sell rating by entering the throat of a significant downturn.
Advanced Micro Devices, Inc. (AMD) Stock Is About to Lose Support - Investorplace.com
Why AMD Stock Is Poised For An Uptick - Advanced Micro Devices Inc - Amigobulls
Better Buy: Advanced Micro Devices, Inc. vs. Cypress Semiconductor
Motley Fool - May 20, 2017
But you wouldn't know it by looking at Cypress Semiconductor's (NASDAQ:CY) and Advanced Micro Devices' (NASDAQ:AMD) stock prices. Cypress' share price is up more than 40% over the past 12 months and AMD's price has skyrocketed a staggering ...
How Does Advanced Micro Devices, Inc. (AMD) Stack Up Right Now? - StockNewsJournal
The Unified Clarity of The Technical Chart For Advanced Micro Devices, Inc ... - NY Stock News
AMD Remains A Better Investment Than Nvidia
Seeking Alpha - May 25, 2017
Nvidia's revenue share slips by 5 percentage points in prior quarter, following minimal introduction of refreshed GPUs by AMD. Nvidia investor thesis hinges heavily on autonomous and datacenter, but extrapolating performance/usage suggests market ...
Advanced Micro Devices, Inc. (AMD): It's Do or Die Time for AMD Stock
Investorplace.com - May 27, 2017
Those losses were seemingly in the rearview mirror when, in mid-May, rumors of a licensing deal between AMD and Intel Corporation (NASDAQ:INTC) materialized.
Advanced Micro Devices, Inc. (AMD) Shares Sold by Greenwood Capital Associates LLC - The Cerbat Gem
Suntrust Banks Inc. Purchases New Position in Advanced Micro Devices, Inc. (AMD) - Sports Perspectives
Advanced Micro Devices: 20% Upside
Seeking Alpha - May 9, 2017
A couple of days ago, investors shaved off nearly a quarter of Advanced Micro Devices, Inc.'s (NASDAQ:AMD) market valuation after the chip maker disappointed investors with its guidance for second quarter gross margins.
Bank Of America Likes Intel, Advanced Micro Devices; Keep An Eye On Analyst Day - Benzinga
3 Reasons Advanced Micro Devices, Inc. (AMD) Stock Will Rebound - Investorplace.com
Advanced Micro Devices (AMD) Presents at JPMorgan Technology, Media & Telecom ...
Seeking Alpha - May 22, 2017
Advanced Micro Devices (AMD) Presents at JPMorgan Technology, Media & Telecom Conference (Transcript). May.22.17 ... I'm very pleased to have Lisa Su, President and Chief Executive Officer at Advanced Micro Devices here with me this morning. ... We ...
Why Advanced Micro Devices, Inc. (AMD) Stock Has 85% Upside - Investorplace.com
The Biggest Loser: Advanced Micro Devices Slumps 3.3% - Barron's
AMD: Vega Is A Nvidia Killer
Seeking Alpha - May 23, 2017
With the recent hardware spec releases, Intel's "K" enthusiast blowback, and cloud deals with Google (NASDAQ:GOOG) (NASDAQ:GOOGL) and Alibaba (NYSE:BABA), AMD is looking to revive the image it once had as a semiconductor company that's backed ...
Advanced Micro Devices, Inc. (NASDAQ:AMD) Shed -2.04% in Pre-Session - Benchmark Monitor
AMD aims huge volume of sales with Ryzen 5 and 7 products - Blasting News
Advanced Micro Devices Inc: Buy the Dip?
Motley Fool - May 8, 2017
Those were solid numbers, but merely matching estimates didn't seem enough to justify a further rally for the stock, which already rallied about 280% over the past 12 months.
AMD Stock Plunged: What Happened? - Seeking Alpha
Advanced Micro Devices Is Overvalued
Seeking Alpha - May 8, 2017
Advanced Micro Devices (NASDAQ:AMD) stock has taken a beating after earnings - a result that showcased in line growth but surprisingly poor guidance considering the company's slew of releases expected in 2017. Regardless of why AMD decided to guide ...
Trade Advanced Micro Devices, Inc. (AMD) Stock to Double Your Money - Investorplace.com
Today's Research Reports on Stocks to Watch: Advanced Micro Devices, Inc. and ... - Yahoo Finance
Advanced Micro Devices: New Short-Term Price Target $13
Seeking Alpha - May 15, 2017
Chipmaker Advanced Micro Devices, Inc.'s (NASDAQ:AMD) shares have recovered nicely last week, gaining 11 percent.
Nisa Investment Advisors LLC Has $164000 Position in Advanced Micro Devices ... - The Cerbat Gem
Here's What's At Stake For Advanced Micro Devices As Its Analyst Day Approaches - Benzinga
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for AMD to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate AMD's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$11.00 Current Price

$0.60 Growth Price (DCF)

Overvalued by 94.56%


Growth Rate Assumed by Market: 116.03%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$0.58 Stability Price (EPV)

Overvalued by 94.75%


Discount Rate: 15.0%

$0.05 Book Price

Overvalued by 99.55%


Very Poor Cash Return on Invested Capital over the past 5 years

AMD has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

AMD has lost $18.37 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow -471.00M -232.00M -193.00M -322.00M 13.00M
divided by
Invested Capital 1.60B 1.62B 1.29B 921.00M 711.00M
Cash ROIC -29.42% -14.30% -15.00% -34.96% 1.83%

Very Poor Return on Equity over the past 5 years

AMD has shown an inability to deliver results for shareholders. This could be due to poor management, AMD operating in a highly competitive industry, or having a weak business in general.

AMD has generated a $114.03 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income -1.18B -83.00M -403.00M -660.00M -497.00M
divided by
Stockholders' Equity 538.00M 544.00M 187.00M -412.00M 416.00M
Return on Equity -219.89% -15.26% -215.51% - -119.47%

Poor Business Performance over the past 10 years

AMD's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

AMD has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow -2.00B -1.32B 7.00M -560.00M 132.00M -471.00M -232.00M -193.00M -322.00M 13.00M

Weak Balance Sheet

AMD's financial position is not ideal. The key is to check whether AMD is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 1.89B 1.10B 2.68B 1.79B 1.77B 1.00B 1.10B 1.04B 785.00M 1.26B
Current Assets 3.82B 2.38B 4.28B 3.59B 3.23B 2.27B 2.88B 2.74B 2.32B 2.53B
Total Assets 11.55B 7.68B 9.08B 4.96B 4.95B 4.00B 4.34B 3.77B 3.11B 3.32B
Current Liabilities 2.63B 2.23B 2.21B 1.67B 1.77B 1.40B 1.62B 1.44B 1.40B 1.35B
Total Liabilities 8.56B 7.76B 8.43B 3.95B 3.36B 3.46B 3.79B 3.58B 3.52B 2.91B
Stockholder' Equity 2.99B -82.00M 648.00M 1.01B 1.59B 538.00M 544.00M 187.00M -412.00M 416.00M
Current Ratio 1.45 1.07 1.93 2.15 1.82 1.62 1.78 1.90 1.65 1.88
TL-to-TA 0.74 1.01 0.93 0.80 0.68 0.87 0.87 0.95 1.13 0.87

Low or No Reinvestment of Profits over the past 10 years

AMD has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to AMD operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings -3.10B -6.20B -5.94B -5.47B -4.98B -6.16B -6.24B -6.65B -7.31B -7.80B
Retained Earnings Growth - -99.94% 4.18% 7.93% 8.98% -23.77% -1.35% -6.46% -9.93% -6.80%

Loss Making Entity over the past 10 years

AMD has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$14.83 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income -3.38B -3.10B 293.00M 471.00M 491.00M -1.18B -83.00M -403.00M -660.00M -497.00M
divided by
Revenue 6.01B 5.81B 5.40B 6.49B 6.57B 5.42B 5.30B 5.51B 3.99B 4.27B
Net Profit Margin -56.19% -53.34% 5.42% 7.25% 7.48% -21.82% -1.57% -7.32% -16.54% -11.63%

Inconsistent Gross Profit Margins over the past 10 years

AMD has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$38.70 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 2.26B 2.32B 2.27B 2.96B 5.12B 1.24B 1.98B 1.84B 1.08B 998.00M
divided by
Revenue 6.01B 5.81B 5.40B 6.49B 6.57B 5.42B 5.30B 5.51B 3.99B 4.27B
Gross Margin 37.62% 39.94% 42.05% 45.60% 77.88% 22.78% 37.33% 33.40% 27.06% 23.36%

High Capital Intensity over the past 10 years

AMD spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

80.46% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 1.69B 624.00M 466.00M 148.00M 250.00M 133.00M 84.00M 95.00M 96.00M 77.00M
divided by
Net Income -3.38B -3.10B 293.00M 471.00M 491.00M -1.18B -83.00M -403.00M -660.00M -497.00M
Capital Expenditure Ratio -49.87% -20.14% 159.04% 31.42% 50.92% -11.24% -101.20% -23.57% -14.55% -15.49%

No Dividend History over the past 10 years

AMD has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 558.00M 607.00M 678.00M 733.00M 742.00M 741.00M 754.00M 768.00M 783.00M 835.00M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 7.32 2.21 9.72 8.14 5.40 2.28 3.85 2.63 2.98 11.34
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

AMD has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 558.00M 607.00M 678.00M 733.00M 742.00M 741.00M 754.00M 768.00M 783.00M 835.00M
Stock Bought Back - -8.07% -10.47% -7.50% -1.21% 0.13% -1.72% -1.82% -1.92% -6.23%
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Discussion
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3
Posted by LIM  (on May 28, 2012)
Excuse me for raining on your AMD party but lets look at facts:

In 2002 EPS was approx 35c/share. Today (2012) EPS is approx 35c/share. ..... i.e 10 years and 0% growth.

In 2002 SPS was approx $11/share and today (2012) SPS is $10/share.

So Earnings is stagnant, sales are declining and I dont see any new earth shattering technology on horizon which leads me to my one and only question....

What part of "don't buy this stock for short term profit", don't you understand?
3
Posted by Honeybadger  (on May 26, 2012)
I don't mean to be condescending, but as an investment there are much better places to go with your money in my opinion. Chip manufacturers are essentially commodity companies. In other words they will go through boom and bust cycles depending on where the economy is in the natural cycle. In my experience chip companies, just like commodity companies, work best as a long term trade. Buy when the economy is in the midst of a recession and sell when the recovery is a year or two old. IF you have to buy a chipmaker(or a commodity company for that matter), buy the biggest and most well managed producer you can find. AMD, historically, doesn't qualify on either front. Unless they have something in the works that will reinvent the wheel(or semiconductor), I don't see how they will be anything more than a veiled commodity producer.
1
Posted by rossmacleod92  (on May 28, 2012)
exactly
-1
Posted by simplesimon  (on April 24, 2012)
I find your stock evaluation incorrect to say the least.

It's as if the value is being set by its competitor who would only be too pleased to see AMD get lost.

My take is that in spite of the competition's buzz word marketing and insistence upon the fabless model being broken, AMD will deliver more consumer value for less cost than its competitor in 2012
10
Posted by rango55  (on April 25, 2012)
You're joking right? AMD has had TWO years of positive free cash flow in the past 10! They have a mediocre balance sheet, and have just barely started having a positive net income.

Vuru is the place you come for fundamentals - and the fundamentals of AMD are terrible.
1
Posted by simplesimon  (on May 16, 2012)
Of course when you have a competitor that is so desperate as to send 4 billion dollars to one of its channel members to stop them from selling AMD products, it does make commercial success a little more difficult to attain. But that tactic only delayed the inevitable comeback by a few years.

I hope you've made all the money you need with the other guy?
-1
Posted by simplesimon  (on May 15, 2012)
This is the company that will soon emerge as the leader in its field.
5
Posted by rossmacleod92  (on May 20, 2012)
so unlikely.