Advanced Micro Devices, Inc. (AMD)

Business overview

AMD operates in the Semiconductor industry with a Financial Quality score of 37 out of 100. It generates a gross margin of 49.5% and a free cash flow margin of 19.4%, showing solid core product profitability. However, its operating margin of 10.7% reflects higher operational overhead, introducing uncertainty around ongoing cost efficiency.

Financial health

AMD earns a strong Balance Sheet pillar score of 85, reflecting robust financial stability. The company maintains a 19.4% free cash flow margin, which indicates consistent internal cash generation. Note that further balance sheet metrics such as total debt and current ratios are unavailable in the provided dataset.

Gross Margin

49.5%

Operating Margin

10.7%

Current Ratio

2.9x

Debt / Equity

0.04

Free Cash Flow (TTM)

$6.7B

Interest Coverage

28x

Valuation

AMD receives a low Valuation pillar score of 28 due to elevated pricing metrics. The stock trades at a P/E ratio of 83.21, a P/S ratio of 11.01, and an FCF yield of 1.7%, while EV/EBITDA data is unavailable. High valuation multiples mean any drop in future growth rates could significantly impact stock price.

P/E (TTM)

83.2x

Forward P/E

Data unavailable

Price / Sales

11.0x

EV / EBITDA

Data unavailable

FCF Yield

1.7%

Key risks

• High valuation multiples, including a P/E ratio of 83.21 and P/S ratio of 11.01, expose the stock to price drops if growth slows.
• A moderate operating margin of 10.7% leaves less buffer against potential operating cost increases.
• Short-term technical momentum is soft, with the price trading 6% below its 50-day moving average in a sideways trend.