AMD Stock Analysis (NASDAQ:AMD)

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$14.32 $0.04 (0.28%) AMD stock closing price Feb 23, 2017 (Closing)
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AMD
Updated on : Feb 23, 2017
previous close
AMD 14.3 (0%)
NASDAQ 5835.5 (0%)
Closing Price On: Feb 23, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Electronics-Semiconductors
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-8.2%
Operating Profit
Operating Margin:
-8.7%
Sector Average:
4.3%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Debt/Equity Ratio
Debt:
1.44B
Debt/Equity Ratio:
 3.45
Compared to the industry
Cash Flow
Operating cash flow:
$188M
Net Income:
-$51M
PROS      CONS
ROE
FCF Margin
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
ROIC
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
AMD PS :
3.1
Industry PS :
2.5
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-24.6%
Return on Equity:
471.5%
Free Cash Flow Margin:
15.1%
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AMD Analysis Video

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AMD’s stock performance since the listing in the 1970’s can only be termed as erratic. It has been unpredictable in terms of top line growth, with swings in market share and growth coming in spurts and then crashing. AMD revenue showed signs of improvements in 2016, with steady growth for two quarters in a row. The company’s new range of chips also generated some excitement during that year. It remains to be seen if AMD continues this streak in the coming years.

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Advanced Micro Devices, Inc. Stock Rating (2/5)

Should you buy AMD stock?

  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for AMD at 471.5%.
  • AMD has a healthy FCF (Free Cash Flow) margin of 15.1%.

Should you sell AMD stock?

  • Sales declined by annually over the last 5 years.
  • AMD registered a negative operating margin of -8.7% (average) over the Trailing Twelve Months (TTM).
  • AMD registered an average TTM Net loss of -11.6%.
  • AMD has a debt/equity ratio of  3.45, which is worse than the average in the Computer and Technology sector.
  • The lack of profits renders the PE ratio useless for AMD stock.
  • The company has a negative Return on Invested Capital of -24.6%, which is a red flag.

Comments on this video and AMD stock

user profile picture
Ron Deb on AMD stock analysis ($6.77)
neutral
The video was much more negative than I exspecked. But numbers don't lie. But at under $7. And ZEN coming at the first of 2017. I see ADM with plenty of room for growth and beleave now is a very great entry price to get in. And also having Alibaba behind them as a tremendous plus. And will not let ADM go bankrupt. And saying that AMD is not a long term investment is a foolish statement the Invation that AMD has shown so far has been very top notch.
5 reply
user profile picture
Ron Deb on AMD stock analysis ($8.71)
bullish
Well today's news! What about Google and ADM teaming up in the CLOUD competition 11/21/2016!AMD close up 0.23 $8.94
1

AMD stock analysis must include the growth potential of the semiconductor market. However, in case of AMD, since the company doesn’t really have a major dominance in terms of market share, that aspect may become less important. For instance, in the GPU graphics cards market, for Add-In-Boards (AIBs), which use discrete graphics cards, AMD has a small share of the market, whereas NVIDIA accounts for nearly all of the rest. So, in that sense, AMD doesn’t have much of a moat, so to say, as things stand. AMD analysis shows that the firm has been rather unstable in the past. AMD stock price analysis shows the ups and downs faced by the tech company, especially around year 2000, around the time of the dotcom bust. A look at the market in which AMD operates, shows that the company faces significant pressures from peers like Intel and NVIDIA, among many others.

AMD PE ratio chart is of lesser relevance now because AMD has been recording losses, but if the company does recover, then it can be a handle tool, which prospective investors can use while evaluating the company. AMD price history shows an unstable growth pattern since listing. A serious turnaround could make the stock a more luring target for tech investors.

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