Advanced Micro Devices Inc

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AMD : NASDAQ : Technology
$12.37 | %
Today's Range: 12.25 - 12.555
Avg. Daily Volume: 8.0827E7
08/18/17 - 4:00 PM ET

Financial Analysis


ADVANCED MICRO DEVICES's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. ADVANCED MICRO DEVICES has average liquidity. Currently, the Quick Ratio is 1.01 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 200.96% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1222.01027.0
EBITDA ($mil)35.0-8.0
EBIT ($mil)0.0-41.0
Net Income ($mil)-16.069.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)846.0957.0
Total Assets ($mil)3370.03316.0
Total Debt ($mil)1417.02238.0
Equity ($mil)417.0-413.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin35.9234.27
EBITDA Margin2.86-0.77
Operating Margin0.0-3.99
Sales Turnover1.371.17
Return on Assets-16.2-10.22
Return on Equity-130.930.0
Debt Q2 FY17 Q2 FY16
Current Ratio1.731.59
Debt/Capital0.771.23
Interest Expense32.041.0
Interest Coverage0.0-1.0


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)947.0795.0
Div / share0.00.0
EPS-0.020.08
Book value / share0.44-0.52
Institutional Own % n/a n/a
Avg Daily Volume8.0065144E77.2373552E7

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 28.03 indicates a significant premium versus the S&P 500 average of 3.02 and a significant premium versus the industry average of 5.24. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, ADVANCED MICRO DEVICES proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AMD NM Peers 32.08   AMD NM Peers 18.72

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

AMD's P/E is negative making this valuation measure meaningless.

 

Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AMD's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AMD 41.13 Peers 20.52   AMD NA Peers 1.09

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

AMD is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AMD 28.03 Peers 5.24   AMD -50.00 Peers 51.84

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AMD is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, AMD is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AMD 2.53 Peers 5.04   AMD 19.10 Peers 27.02

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AMD is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AMD significantly trails its peers on the basis of sales growth

 

 

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