AMD  Advanced Micro Devices Inc.

Exchange

NYSE

Sector

Technology

Industry

Semiconductors

Market Cap.

13.33B

Vuru Grade

11.01/100

Current Price

$14.32
+0.04 (+0.28%)

Growth Price

$0.60
Overvalued by 95.82%

Stability Price

$0.58
Overvalued by 95.96%

Company Metrics

  • P/E 37.12
  • P/S 3.11
  • P/B 31.95
  • EPS -0.60
  • Cash ROIC -18.37%
  • Cash Ratio 0.94
  • Dividend 0.00 / 0.00 %
  • Avg. Vol. 56.62M
  • Shares 835.00M
  • Market Cap. 13.33B

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

AMD Regains Ground... But For How Long?
Seeking Alpha - Feb 22, 2017
In other words, is AMD trading on hype alone or do the fundamentals of the company show legitimate growth? This question can be tackled from many angles.
Advanced Micro Devices Options Trading Picks Up Amid NVIDIA Sell-Off - Schaeffers Research (blog)
AMD: Full Steam Ahead
Seeking Alpha - 16 hours ago
The author in question says he "would not expect a run in AMD share price because investors have known about Ryzen and Vega for quite some time.
Advanced Micro Devices, Inc. (NASDAQ:AMD) Rises 0.71% Wednesday's Premarket - Benchmark Monitor
Thursday's Vital Data: Bank of America Corp (BAC), Advanced Micro Devices, Inc ...
Investorplace.com - 21 hours ago
U.S. stock futures are headed higher this morning, as the Dow Jones Industrial Average looks to bank its 10th-consecutive winning session.
Is it Finally Time to Buy Advanced Micro Devices Inc?
Motley Fool - Feb 10, 2017
Shares of AMD (NASDAQ:AMD) recently surged after the chipmaker posted strong fourth quarter numbers, topped off with solid guidance.
Better Buy: Advanced Micro Devices Inc. vs. Cypress Semiconductor - Madison.com
Why Advanced Micro Devices Inc (AMD) Stock Looks Set To Skyrocket With The ... - Amigobulls
Two Semiconductor Stocks to Avoid, One to Buy: Advanced Micro Devices, Inc ...
Smarter Analyst - Feb 22, 2017
MKM analyst Ruben Roy came out today with new reports on a handful of semiconductor stocks. Let's take a look and see what Roy has to say about Advanced Micro Devices, Inc. (NASDAQ:AMD), NVIDIA Corporation (NASDAQ:NVDA), and Micron ...
Why AMD Has Risen in the Past Month - Market Realist
MKM Partners Assumes AMD (AMD) at Neutral (Earlier) - StreetInsider.com
Stock Update (NASDAQ:AMD): Advanced Micro Devices, Inc. Appoints John W ...
Smarter Analyst - Feb 21, 2017
Advanced Micro Devices, Inc. (NASDAQ:AMD) announced the appointment of John W. Marren, 53, to its board of directors coinciding with Martin Edelman's decision to step down as member of the company's board of directors, a position he has held since ...
Advanced Micro Devices Reaches Highest Level Since October 2007
Benzinga - Feb 22, 2017
Advanced Micro Devices, Inc. (NYSE: AMD) shares are trading higher by $0.18 (1.2 percent) at $14.18 in Wednesday's session.
Advanced Micro Devices launching Ryzen 7 processors March 2 - Seeking Alpha
Analyst's Proposition on Bank of America Corporation (BAC), Advanced Micro ... - The USA Commerce
How Does the Chart Look for Advanced Micro Devices, Inc. (AMD) ?
The USA Commerce - 15 hours ago
We have gathered the technical data on Advanced Micro Devices, Inc. (AMD), and see some interesting trends in the stock's behavior of late.
ALookout for Price Target? Bank of America Corporation (BAC), Advanced Micro ... - StockNewsJournal
Pay Too Much Attention To Two Stock Analyst Ratings: Bank of America ... - The Voice Registrar
Trade of the Day: Advanced Micro Devices, Inc. (NASDAQ:AMD)
Investorplace.com - Feb 17, 2017
Our indicators are giving buy signals this week, a slight upgrade from neutral-to-bullish readings last week. The market broke out of its narrow trading range and, of course, when it does that it usually moves pretty quickly, which is what we're seeing ...
Option Market: Advanced Micro Devices Inc Risk Hits An Amplified Level - CML News
Stocks in Motion: Advanced Micro Devices, Inc. (NASDAQ:AMD), Cisco Systems ... - TRA
AMD: All Aboard The Hype Train
Seeking Alpha - Feb 17, 2017
It seems that every day more rumors are circulating about AMD's (NYSE:AMD) new CPU "Ryzen." In this article we are going to cover what is currently leaking out and then possible ways to play it via stock options.
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.

$14.32 Current Price

$0.60 Growth Price (DCF)

Overvalued by 95.82%


Growth Rate Assumed by Market: 123.90%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$0.58 Stability Price (EPV)

Overvalued by 95.96%


Discount Rate: 15.0%

$-0.21 Book Price

Overvalued by 101.44%


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.