AMD Investment Analysis Report & Stock Research, Advanced Micro Devices, Inc.

Advanced Micro Devices, Incorporated (AMD)

AMD Stock Report

2-Year Price History

View Larger AMD Chart
NYSE:AMD
$9.25
(3/16 12:46PM)
+3.7%
Open$8.95 Mkt Cap$6.0 Billion
High$9.29 52Wk High$10.04
Low$8.92 52Wk Low$2.92
Volume10.4 Million Avg Vol 10D16.1 Million

Ockham's Rating/Recommendation Summary

Rating specific information requires Premium Access.
Buy Now or Learn More about Ockham's Features and Services.

AMD Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at AMD through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 2.28x and 0.75x respectively.

Utilizing this range we can see that AMD’s current Price to Sales per share ratio of 1.11x is significantly below its average levels historically. In fact, with a current price of $8.93, AMD is a full 27% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for AMD.

AMD Cash Earnings

Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. AMD is significantly below its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from AMD. For example, AMD's Cash Earnings ratio per share has fluctuated between 5.56 and 15.50 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where AMD is with respect to prior business periods.

So with AMD's current price (latest close of $8.93) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, AMD is 58% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn't exist in a vacuum. So if the market doesn't recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with AMD.

AMD Dividends

When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for AMD to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis. While we do like to see companies with healthy and growing dividends, it is not appropriate for all companies, especially those focused on growth. In this regard, we regard AMD as neutral because we do not have historical data for this company's dividends. We will being incorporating this into our analysis as soon as that data is available.

Peer Comparison

:

Advanced Micro Devices, Inc. Industry Grouping

(3/15/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including AMD) 14.86 6.92 » 70.43 2.59 1.65 » 13.10 12.73% 17.52%
*10 year range does not include current year values
Linear Technology Corp. LLTC $6.1 Billion $27.39 20.00 10.81 » 62.96 4.47 4.04 » 29.93 3.71% 7.87%
Flextronics International Limited FLEX $6.0 Billion $7.44 10.70 3.99 » 135.22 0.25 0.04 » 1.08 16.32% 2.78%
Waters Corp. WAT $6.0 Billion $64.55 15.93 7.44 » 75.58 4.05 1.89 » 13.02 6.29% 53.02%
Advanced Micro Devices, Inc. AMD $6.0 Billion $8.92 4.44 0.98 » 34.72 1.11 0.17 » 4.13 1.56% 17.34%
Maxim Integrated Products, Inc. MXIM $5.8 Billion $19.04 21.97 11.04 » 69.86 3.51 1.99 » 19.57 2.72% 10.90%
LG Display Company Limited LPL $5.7 Billion $15.85 5.72 1.32 » 8.50 0.64 0.30 » 1.91 34.59% 13.04%
Ockham Coverflow

Sharpen Your Investing

  • Access to over 5,000 stock reports
  • Portfolio Analytics and Tracking
  • Business Television Tracking
  • CNBC and Fox Business Show Recaps
Get Started
The Latest Financial News
The most recent Stocks on Financial TV & Blogs from impactful financial news sources
In the Loop

The Outlook for Emerging Markets and Advanced Micro Devices, Incorporated Discussed on In the Loop

News related to emerging markets affecting Advanced Micro Devices, Incorporated today, and In the Loop discussed some recent developments.

We noticed recently that in comparison to all other stocks we analyze in the news; AMD has received less coverage from the financial media in business television and blogs. Please have a look at our report for our reasons to upgrade the stock to Fairly Valued on our report dated Saturday, February 27, 2010. Advanced Micro Devices, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.

“… These other winners are india, intel, and ADVANCED MICRO DEVICES, bigger in silicon valley and hollywood. Bailout of the virtual world of pandora to come to light. …”

Cavuto

News Breaking on Advanced Micro Devices, Incorporated on Cavuto

As always, the latest news on AMD is available to Ockham clients through RazorWire, and it was mentioned recently on Cavuto.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, AMD has been less covered in the news compared to the rest of our universe of stocks. The crowd at The Motley Fool does not like AMD and believes that it will Underperform. At Ockham, we are not advising buying Advanced Micro Devices, Incorporated at the current price level because according to our methodology it is not supported by the fundamentals.

“… decisions. Here is more of what the toyota spokesman, ADVANCED MICRO DEVICES calls of vp of corporate communications had …”

Countdown to the Closing Bell

The AMD Balance Sheet Was Discussed on Countdown to the Closing Bell

The balance sheet is a key indicator of a company's financial standing; AMD's was discussed not long ago on Countdown to the Closing Bell.

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Advanced Micro Devices, Incorporated has actually sunk a bit in comparison to the others. Investors are headed for the exit following today's news as the stock is trading down $0.84. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Advanced Micro Devices, Incorporated underperforming. As of this week's report, we have an Overvalued valuation on AMD because the price at the time of the report had gotten too high to be justified by the fundamentals. Since that point, the price has fallen 7.8% meaning it is starting to come back into line with our expectations.

“… ADVANCED MICRO DEVICES. Starks down 12% puts its biggest drop. It was downgraded from itself to a whole rating. Number 3, pharmaceutical co. In the mix. …”

Closing Bell

Discussion Turns to AMD and Merger Talk on Closing Bell

News broke today regarding mergers and acquisitions and Advanced Micro Devices, Incorporated was discussed as well on Closing Bell. Other sources will be required to know exactly what the context was in the discussion.

At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. We noticed recently that in comparison to all other stocks we analyze in the news; AMD has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.

“… And in particular, he says, that he gave raj rajaratnam some information about the 2000 acquisition of ati technologies by ADVANCED MICRO DEVICES, a deal that prosecutors say that ... …”

Squawk Box

Squawk Box Has Something to Say About AMD and Regulators

Squawk Box talked recently regarding regulatory issues and Advanced Micro Devices, Incorporated, while these two issues may not be related we though it worth noting.

Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Advanced Micro Devices, Incorporated underperforming. As of this week's report, we have an Overvalued valuation on AMD because the price has gotten too high to be justified by the fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Advanced Micro Devices, Incorporated has actually sunk a bit in comparison to the others.

“… She allegedly shared information with rajaratnam on a number of tech stocks, including ADVANCED MICRO DEVICES in 2008. She also allegedly traded on inside information on sun ... …”

Mad Money

Stay Current on AMD's News on Mad Money

The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Advanced Micro Devices, Incorporated.

Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Advanced Micro Devices, Incorporated underperforming. As of this week's report, we have an Overvalued valuation on AMD because the price has gotten too high to be justified by the fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Advanced Micro Devices, Incorporated has actually sunk a bit in comparison to the others.

“… For instance, take amd, the ADVANCED MICRO DEVICES. I recommended that one at $2. 43, november is 14 last year. It's now up 224% --. …”

Countdown to the Closing Bell

See More News on AMD from Countdown to the Closing Bell

Advanced Micro Devices, Incorporated is one of the thousands of companies that use news analytics on, and it was recently discussed on Countdown to the Closing Bell.

Drivers and photographers >> i'm watching the clock and the minutes are ticking down on her 15, 14, 13 minutes. Closing minutes in 23 minutes. Chip maker intel and ADVANCED MICRO DEVICES ending the legal battle with a major settlement today. Both sides saying we're done. Does it level the playing field for amd? What about andrew cuomo, the new york attorney general? Is he dropping his sword as we have tech industry roger kay joining us next on

“… ying we're done. Does it level the playing field for amd? What about andrew cuomo, the new york attorney general? Is he dropping his sword as we have tech industry roger kay joining us next on …”

Countdown to the Closing Bell

Countdown to the Closing Bell: Will AMD Test Its 52-week High?

An abnormally high price is obviously a joyous occasion for investors in that stock. See what Countdown to the Closing Bell was talking about for AMD below.

Today, exxon-mobil and chevron moving lower by 1%. Game changer in big way. Intel paying ADVANCED MICRO DEVICES $1 billion to say enough. They're settling a long simmering anti-trust battle and other legal wars between the two. Shares of ADVANCED MICRO DEVICES on the news hitting a 52-week high. Intel is down slightly. The big question as the fight club of intel and amd is appearing to be over, what about new york attorney general andrew cuomo?

“… VICES on the news hitting a 52-week high. Intel is down slightly. The big question as the fight club of intel and amd is appearing to be over, what about new york attorney general andrew cuomo? …”

Fox Business

Holding AMD Stock? See What Is Being Discussed on Fox Business

Advanced Micro Devices, Incorporated is one of the thousands of companies that use news analytics on, and it was recently discussed on Fox Business.

He says this one goes to 11. Not ten, it goes to 11. It's an 11. Sounds good. Warriors are too expensive, that's what intel and ADVANCED MICRO DEVICES are saying with the mutual over the accusations that intel broke the anti-competition law as amd jumped 22% on the news it's bff with intel. Does the new york attorney general case against intel collapse? Top tech analyst has what he thinks is the answer. Stay tuned.

“… 22% on the news it's bff with intel. Does the new york attorney general case against intel collapse? Top tech analyst has what he thinks is the answer. Stay tuned. …”

Countdown to the Closing Bell

Advanced Micro Devices, Incorporated (AMD) Discussed on Fox Business's Countdown to the Closing Bell

Advanced Micro Devices, Incorporated is in the news. Find out how this impacts AMD trading on Ockham Research.

Threatened anyone." this after a new york attorney general andrew cuomo slaps the company with with anti-trust lawsuit. The stock is up. Not getting hurt on the news. But this goes way back to ADVANCED MICRO DEVICES saying that intel has had sharp elbows. They have accused intel of breaking the anti-trust laws. So far, intel says absolutely they have told us at fox business that in the past and they stand by their word on that. Two words. No change. Just minutes ago, the federal reserve announced the fed

“… They have accused intel of breaking the anti-trust laws. So far, intel says absolutely they have told us at fox business that in the past and they stand by their word on that. Two words. No change. Just minutes ago, the federal reserve announced the fed …”

View All Advanced Micro Devices, Inc. Stock News

Key Fundamentals

AMD - Advanced Micro Devices, Incorporated Fundamentals
Price (3/16 12:46PM) $9.25
Volume (3/16 12:46PM) 10.4 Million
Last Close Price $8.92
10 Day Average Volume 16.1 Million
13 Week Price Range $6.98 - $10.04
52 Week Price Range $2.92 - $10.04
LTM Revenue $5.4 Billion
 
Shares Outstanding (12/2009) 672.1 Million
Market Capitalization $6.0 Billion
Shares Held By Institutions 286.3 Million
Institutional Holders 417
% Shares Held By Institutions 42.90%
Earnings Per Share (EPS) $0.45
P/E Ratio 19.80
Book Value Per Share $0.96
 
Gross Margin 61.60%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 2.30
Fiscal Year Ends December

About Advanced Micro Devices, Inc.

Advanced Micro Devices, Incorporated is considered to operate in the Technology sector. They specifically operate in the Semiconductor-Broad Line business segment contained within the Electronics industry.

A a global semiconductor company with manufacturing, research and development, and sales and administrative facilities throughout the world. It provides processing solutions for the computing and graphics markets.