Asset Structure Analysis
AMD’s fiscal 2023 ended on December 30, 2023,and fiscal 2022 ended on December 31, 2022.
AMD‘s total assets were $67.89 billion as of December 30, 2023, which was slightly higher than $67.58 billion as of December 31, 2022.
Goodwill was $24.26 billion as of December 30, 2023, accounting for 35.7%.
Acquisition-related intangibles were $21.36 billion as of December 30, 2023, making up 31.5% of total assets.
AMD’s total current assets were $16.77 billion as of December 30, 2023, composing 24.7%.
Among total current assets, cash and cash equivalents were $3.93 billion, short-term investments were $1.84 billion, accounts receivable were $5.38 billion, inventories were $4.35 billion and prepaid expenses and other current assets were $1.26 billion.
Liquidity and Solvency Analysis
AMD’s total current liabilities were $6.69 billion as of December 30, 2023.
The current ratio was 2.5 for fiscal 2023.
As of December 30, 2023, total liabilities were $12 billion, and the current asset could cover the amount of total liabilities at all, which show that the company’s debt pressure is not great.
Profitability Analysis
AMD’s net revenue was $22.68 billion, $23.6 billion and $16.43 billion in fiscal 2023, 2022 and 2021, respectively.
Gross profit was $10.46 billion, $10.6 billion and $7.93 billion in fiscal 2023, 2022 and 2021, respectively.
The gross profit margin was 46.1%, 44.9% and 48.3% in fiscal 2023, 2022 and 2021, respectively.
AMD’s net revenue in fiscal 2022 was up 43.6% year-over-year.
AMD’s net revenue in fiscal 2023 was down 3.9% year-over-year.
The operating profit was $400 million, $1.26 billion and $3.65 billion in fiscal 2023, 2022 and 2021, respectively.
The net income was $854 million, $1.32 billion and $3.16 billion in fiscal 2023, 2022 and 2021, respectively.
Cash Flow Analysis
Net cash provided by operating activities was $1.67 billion, $3.57 billion and $3.55 billion in fiscal 2023, 2022 and 2021, respectively.
AMD’s capital expenditure has been small, which was $546 million, $450 million and $300 million in fiscal 2023, 2022 and 2021, respectively.
AMD’s operating performance in six months ended to June 29, 2024
AMD’s net revenue was $11.31 billion and $10.71 billion in six months ended to June 29, 2024 and six months ended to July 1, 2023, respectively.
The revenue in six months ended to June 29, 2024 was up 5.6%, compared with $10.71 billion in six months ended to July 1, 2023.
Conclusion
AMD’s balance asset is very healthy.
The growth of net revenue get slow and the company’s profitability is mediocre.
If net revenue surged, gross margin would soar.
The capital expenditure is small, which is covered by cash flow at all.
AMD stock price is $132.50 per share, which is equivalent to $211.45 billion of market price.
We believe that AMD stock price is overvalued.
The low growth of net revenue dose not maintain AMD stock price.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
AMD is a global semiconductor company primarily offering:
server microprocessors (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), Smart Network Interface Cards (SmartNICs), Artificial Intelligence (AI) accelerators and Adaptive System-on-Chip (SoC) products for data centers;
CPUs, APUs and chipsets for desktop, notebook, and handheld personal computers;
discrete GPUs, and semi-custom SoC products and development services; and
embedded CPUs, GPUs, APUs, FPGAs, System on Modules (SOMs), and Adaptive SoC products.
