Advanced Micro Devices Inc

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AMD : NASDAQ : Technology
$10.34 | %
Today's Range: 9.87 - 10.54
Avg. Daily Volume: 4.6007E7
12/09/16 - 4:00 PM ET

Financial Analysis


ADVANCED MICRO DEVICES's gross profit margin for the third quarter of its fiscal year 2016 has increased 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 1.29 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, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 214.58% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)1307.01061.0
EBITDA ($mil)56.0-68.0
EBIT ($mil)23.0-110.0
Net Income ($mil)-406.0-197.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)1258.0755.0
Total Assets ($mil)3616.03229.0
Total Debt ($mil)1632.02260.0
Equity ($mil)385.0-336.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin33.0526.48
EBITDA Margin4.28-6.4
Operating Margin1.76-10.37
Sales Turnover1.141.32
Return on Assets-15.15-28.55
Return on Equity-142.330.0
Debt Q3 FY16 Q3 FY15
Current Ratio1.921.7
Debt/Capital0.811.17
Interest Expense41.039.0
Interest Coverage0.56-2.82


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)926.0790.0
Div / share0.00.0
EPS-0.5-0.25
Book value / share0.42-0.43
Institutional Own % n/a n/a
Avg Daily Volume4.6923968E72.9501228E7

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 20.52 indicates a significant premium versus the S&P 500 average of 2.79 and a significant premium versus the industry average of 4.12. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. 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 29.52   AMD NM Peers 17.35

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 170.60 Peers 18.04   AMD NA Peers 2.45

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

AMD's ratio is negative making this valuation measure meaningless.

 

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 20.52 Peers 4.12   AMD 41.53 Peers 21.99

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 1.92 Peers 4.40   AMD -3.47 Peers 10.60

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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