Advanced Micro Devices, Inc. Net Income jumped on 630% and Revenue surged on 45.0%
01/26/2021 • About Advanced Micro Devices, Inc. (
$AMD) • By InTwits
Advanced Micro Devices, Inc. reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Advanced Micro Devices, Inc. is a fast growth stock: FY2020 revenue growth was 45.0%, 5 year revenue CAGR was 19.6% at FY2020 ROIC 31.8%
- EBITDA Margin is expanding: 17.8% in FY2020 vs. 13.5% in FY2019 vs. -5.6% in FY2016
- EBITDA Margin is quite volatile: 17.8% in FY2020, 13.5% in FY2019, 9.6% in FY2018, 5.2% in FY2017, -5.6% in FY2016
- Advanced Micro Devices, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's a lot of higher than industry average of 3.0%.
- CAPEX is quite volatile: $294m in FY2020, $217m in FY2019, $163m in FY2018, $113m in FY2017, $77m in FY2016
- The company has highly profitable business model: ROIC is 31.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Advanced Micro Devices, Inc.'s Revenue surged on 45.0%. Revenue growth showed acceleration in FY20Q4 - it increased 52.5% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.9 pp from 28.6% to 23.7% in FY2020. EBITDA Margin followed a growing trend at 5.5 pp per annum in FY2016-FY2020.
Gross Margin increased slightly on 1.9 pp from 42.6% to 44.5% in FY2020. Gross Margin grew at 5.1 pp per annum in FY2016-FY2020.
Net Income margin surged on 20.4 pp from 5.1% to 25.5% in FY2020. Net Income margin grew at 8.0 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
Advanced Micro Devices, Inc.'s CAPEX/Revenue was 3.0% in FY2020. Advanced Micro Devices, Inc.'s CAPEX/Revenue increased slightly on 0.86 pp from 2.2% in FY2017 to 3.0% in FY2020. Average CAPEX/Revenue for the last three years was 2.9%. CAPEX as a % of Revenue followed a growing trend at 0.35 pp per annum in the last 5 years.
Return on investment
The company operates at high and attractive ROIC (31.8%) and ROE (57.5%). ROIC jumped on 10.3 pp from 21.5% to 31.8% in FY2020. ROE surged on 40.8 pp from 16.7% to 57.5% in FY2020. ROIC followed a growing trend at 12.1 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is -0.6x Net Debt / EBITDA and 0.3x Debt / EBITDA. Debt dropped on 19.9% while cash increased on 8.8%.
Advanced Micro Devices, Inc. has no short term refinancing risk: cash is higher than short term debt (3,067.3%).
Valuation and dividends
The company's trades at EV/EBITDA 64.8x and P/E 45.7x.
Management team
Lisa T Su is a Advanced Micro Devices, Inc.'s CEO. Lisa T Su has spent 6 years with the company. Devinder Kumar is a the company's CFO. Devinder Kumar has spent 5 years at the company.
Financial and operational results
FY ended 12/26/2020
Advanced Micro Devices, Inc. ($AMD) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 4,319 | 5,253 | 6,475 | 6,731 | 9,763 | 45.0% |
| Gross Profit | 1,003 | 1,787 | 2,447 | 2,868 | 4,347 | 51.6% |
| SG&A | 466 | 516 | 562 | 750 | | |
| EBITDA | -240 | 271 | 621 | 909 | 1,740 | 91.4% |
| EBIT | -373 | 127 | 451 | | | |
| Interest expence | 156 | 126 | 121 | | | |
| Tax | 39 | 18 | -9 | | | |
| Net Income | -498 | -33 | 337 | 341 | 2,490 | 630.2% |
| Stock Based Compensation | 86 | 97 | 137 | | | |
Balance Sheet
|
|---|
| Cash | 1,264 | 1,185 | 1,078 | 1,466 | 1,595 | 8.8% |
| Accounts Receivable | 311 | 454 | 1,235 | | | |
| Inventory | 751 | 694 | 845 | | | |
| Accounts Payable | 440 | 384 | 528 | | | |
| Short Term Debt | 0 | 70 | 136 | 43 | 52 | 20.9% |
| Long Term Debt | 1,435 | 1,325 | 1,114 | 685 | 531 | -22.5% |
Cash flow
|
|---|
| Capex | 77 | 113 | 163 | 217 | 294 | 35.5% |
Ratios
|
|---|
| Revenue growth | 8.2% | 21.6% | 23.3% | 4.0% | 45.0% | |
| EBITDA growth | -23.6% | -212.9% | 129.2% | 46.4% | 91.4% | |
|
|---|
| Gross Margin | 23.2% | 34.0% | 37.8% | 42.6% | 44.5% | 1.9% |
| EBITDA Margin | -5.6% | 5.2% | 9.6% | 13.5% | 17.8% | 4.3% |
| EBIT Margin | -8.6% | 2.4% | 7.0% | | |
| SG&A, % of revenue | 10.8% | 9.8% | 8.7% | 11.1% | | |
| SBC, % of revenue | 2.0% | 1.8% | 2.1% | | |
| Net Income Margin | -11.5% | -0.6% | 5.2% | 5.1% | 25.5% | 20.4% |
| CAPEX, % of revenue | 1.8% | 2.2% | 2.5% | 3.2% | 3.0% | -0.2% |
|
|---|
| ROIC | -21.7% | 7.3% | 21.6% | 21.5% | 31.8% | 10.3% |
| ROE | | -6.5% | 36.2% | 16.7% | 57.5% | 40.8% |
| Net Debt/EBITDA | | 0.8x | 0.3x | -0.8x | -0.6x | 0.2x |
| Interest coverage ratio (ICR) | | 1.0x | 3.7x | | |
| Interest expence / Average debt | 10.9% | 8.9% | 9.1% | | | |
People
|
|---|
| Insider ownership | 0.6% | 0.6% | 0.6% | | | |
| Employees | 8,900 | 8,900 | 10,100 | | | |
| Revenue/Employee, th. $ | 485 | 590 | 641 | | | |
Advanced Micro Devices, Inc. ($AMD) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 1,786 | 1,932 | 2,801 | 3,244 | | 40.4% | 26.2% | 55.5% | 52.5% |
| EBITDA | 245 | 245 | 531 | 660 | | 152.6% | 97.6% | 105.0% | 53.8% |
| Net Income | 162 | 157 | 390 | 1,781 | | 912.5% | 348.6% | 225.0% | 947.6% |
Balance Sheet
|
|---|
| Cash | 1,330 | 1,775 | 1,296 | 1,595 | | 36.0% | 84.3% | 12.1% | 8.8% |
| Short Term Debt | 0 | 200 | 0 | 52 | | -100.0% | 426.3% | -100.0% | 20.9% |
| Long Term Debt | 699 | 694 | 578 | 531 | | -43.5% | -44.1% | -46.1% | -22.5% |
Ratios
|
|---|
| Gross Margin | 45.8% | 43.9% | 43.9% | 44.7% | | 4.8% | 3.3% | 0.8% | 0.1% |
| EBITDA Margin | 13.7% | 12.7% | 19.0% | 20.3% | | 6.1% | 4.6% | 4.6% | 0.2% |
| Net Income Margin | 9.1% | 8.1% | 13.9% | 54.9% | | 7.8% | 5.8% | 7.3% | 46.9% |
Peers in Semiconductors
Below we provide Advanced Micro Devices, Inc. benchmarking against other companies in Semiconductors industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Inphi Corporation ($IPHI) | - | 30.8% | -15.4% | 24.2% | 86.8% |
| Sequans Communications S.A. ($SQNS) | - | 5.9% | -16.6% | -23.3% | 65.0% |
| MaxLinear, Inc ($MXL) | - | 8.4% | -8.4% | -17.6% | 50.9% |
| Kopin Corporation ($KOPN) | - | 23.0% | -12.1% | 20.7% | 35.9% |
| Monolithic Power Systems, Inc. ($MPWR) | - | 21.2% | 23.7% | 7.8% | 34.5% |
| |
|---|
| Median (43 companies) | 1.2% | 10.9% | 4.4% | -3.2% | 1.0% |
|---|
| Advanced Micro Devices, Inc. ($AMD) | - | 21.6% | 23.3% | 4.0% | 45.0% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| CEVA, Inc. ($CEVA) | 91.6% | 92.1% | 89.8% | 88.4% | 89.3% |
| Universal Display Corporation ($OLED) | 83.9% | 80.8% | 75.5% | 78.5% | 80.1% |
| Rambus, Inc. ($RMBS) | 80.1% | 79.9% | 76.8% | 77.1% | 75.0% |
| Analog Devices, Inc. ($ADI) | 65.1% | 59.9% | 68.3% | 67.0% | 65.9% |
| MoSys, Inc. ($MOSY) | 49.0% | 46.9% | 61.8% | 61.0% | 65.7% |
| |
|---|
| Median (43 companies) | 48.0% | 49.1% | 50.4% | 50.7% | 49.4% |
|---|
| Advanced Micro Devices, Inc. ($AMD) | 23.2% | 34.0% | 37.8% | 42.6% | 44.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Texas Instruments Incorporated ($TXN) | 43.5% | 46.7% | 48.6% | 47.5% | 47.6% |
| Intel Corp ($INTC) | 35.2% | 41.7% | 45.7% | 45.9% | 46.7% |
| Broadcom Inc. ($AVGO) | 19.9% | 40.4% | 44.2% | 40.9% | 46.2% |
| Universal Display Corporation ($OLED) | 44.8% | 51.6% | 35.3% | 48.0% | 45.9% |
| Analog Devices, Inc. ($ADI) | 36.2% | 32.1% | 43.2% | 42.1% | 42.0% |
| |
|---|
| Median (41 companies) | 9.2% | 10.7% | 9.5% | 12.9% | 17.3% |
|---|
| Advanced Micro Devices, Inc. ($AMD) | -5.6% | 5.2% | 9.6% | 13.5% | 17.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Micron Technology, Inc. ($MU) | 46.9% | 23.3% | 29.2% | 41.8% | 38.4% |
| Sequans Communications S.A. ($SQNS) | 11.8% | 13.3% | 22.9% | 29.6% | 27.1% |
| Intel Corp ($INTC) | 16.2% | 18.8% | 21.4% | 22.5% | 18.6% |
| First Solar, Inc. ($FSLR) | 7.9% | 17.5% | 33.0% | 21.8% | 15.4% |
| Power Integrations, Inc. ($POWI) | 3.1% | 7.5% | 5.9% | 5.7% | 14.5% |
| |
|---|
| Median (40 companies) | 3.7% | 4.7% | 4.4% | 3.8% | 4.0% |
|---|
| Advanced Micro Devices, Inc. ($AMD) | 1.8% | 2.2% | 2.5% | 3.2% | 3.0% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Texas Instruments Incorporated ($TXN) | 34.9% | 43.1% | 47.5% | 39.7% | 38.2% |
| Applied Materials Inc ($AMAT) | 19.0% | 31.2% | 36.4% | 27.7% | 32.1% |
| QUALCOMM Incorporated ($QCOM) | 15.8% | 5.7% | 2.2% | 38.0% | 28.1% |
| NVIDIA Corporation ($NVDA) | 13.1% | 27.3% | 35.3% | 36.9% | 22.7% |
| Skyworks Solutions, Inc. ($SWKS) | 33.7% | 33.1% | 32.3% | 23.2% | 21.2% |
| |
|---|
| Median (45 companies) | 1.7% | 3.2% | 2.2% | 2.2% | 5.3% |
|---|
| Advanced Micro Devices, Inc. ($AMD) | -21.7% | 7.3% | 21.6% | 21.5% | 31.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| SunPower Corporation ($SPWR) | - | - | - | - | 8.2x |
| MACOM Technology Solutions Holdings, Inc. ($MTSI) | 3.0x | 7.2x | 98.6x | - | 6.6x |
| Rambus, Inc. ($RMBS) | -0.1x | -0.1x | - | - | 5.9x |
| Inphi Corporation ($IPHI) | 4.5x | 33.7x | 32.2x | 4.5x | 3.4x |
| Canadian Solar Inc. ($CSIQ) | 11.3x | 6.8x | 2.7x | 3.4x | 3.3x |
| |
|---|
| Median (31 companies) | 0.2x | 0.4x | 0.3x | 0.5x | 0.5x |
|---|
| Advanced Micro Devices, Inc. ($AMD) | - | 0.8x | 0.3x | -0.8x | -0.6x |
