Advanced Micro Devices Inc

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AMD : NASDAQ : Technology
$14.17 | %
Today's Range: 13.9 - 14.67
Avg. Daily Volume: 7.2426E7
06/23/17 - 4:00 PM ET

Financial Analysis


ADVANCED MICRO DEVICES's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. ADVANCED MICRO DEVICES has average liquidity. Currently, the Quick Ratio is 1.05 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 181.31% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)984.0832.0
EBITDA ($mil)-22.0-45.0
EBIT ($mil)-56.0-78.0
Net Income ($mil)-73.0-109.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)945.0716.0
Total Assets ($mil)3299.02981.0
Total Debt ($mil)1408.02236.0
Equity ($mil)409.0-503.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin37.0936.3
EBITDA Margin-2.23-5.4
Operating Margin-5.69-9.38
Sales Turnover1.341.27
Return on Assets-13.97-19.75
Return on Equity-112.710.0
Debt Q1 FY17 Q1 FY16
Current Ratio1.821.68
Debt/Capital0.771.29
Interest Expense32.040.0
Interest Coverage-1.75-1.95


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)942.0793.0
Div / share0.00.0
EPS-0.08-0.14
Book value / share0.43-0.63
Institutional Own % n/a n/a
Avg Daily Volume7.1797048E76.7795488E7

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 33.13 indicates a significant premium versus the S&P 500 average of 3.09 and a significant premium versus the industry average of 5.29. The price-to-sales ratio is well 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 27.56   AMD NM Peers 18.89

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 54.26 Peers 22.40   AMD NA Peers 1.23

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 33.13 Peers 5.29   AMD 25.34 Peers 14.91

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.

 

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

AMD is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AMD 3.06 Peers 5.19   AMD 16.63 Peers 24.62

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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