Chipmakers Advanced Micro Devices, Inc. (NASDAQ:AMD) persists its position slightly strong in context of buying side, while shares price declined -2.20% during latest trading session. Advanced Micro Devices (AMD) and Analog Devices (ADI) received price-target hikes from Wall Street analysts, while Monolithic Power Systems (MPWR) got a new bullish report from an investment bank, as the sector in general got a boost from investors. Jefferies maintained its buy rating on AMD and raised its price target to 16 from 13. Susquehanna Financial Group kept its neutral rating on AMD, but upped its price target to 12 from 9.
Jefferies analyst Mark Lipacis said AMD’s new Ryzen chips 5 and 7 “will result in meaningful share gains” from Intel (INTC) in desktop PCs, while other chips will help it take notebook and server share this year. Susquehanna analyst Christopher Rolland said Wall Street’s sales targets for AMD in the second quarter are “very beatable” as the company continues its Ryzen chip rollout. “Ryzen (is) just starting to trickle in during first-quarter 2017, but this low bar means an easy 2017 comp with potential for upside,” Rolland said.
Profitability Ratio Analysis; To measure firm’s performance and profitability, we focus on ordinary profitability ratio, AMD has gross profit margin of 23.40% for trailing twelve months and operating margin is calculated as -8.70%, these are a better detectors to find consistency or positive/negative trends in a firm’s earnings. Following in trace line, returns on investment amplify the findings, the Advanced Micro Devices, Inc. (NASDAQ:AMD)’s ROI concludes as -25.90%; it gives idea for personal financial decisions, to compare a firm’s profitability or to compare the efficiency of different investments. The returns on assets of firm also on noticeable level, it has ROA of -15%, which signifies how profitable a firm is relative to its total assets.
Advanced Micro Devices, Inc. (NASDAQ:AMD) holds price to book ratio of 31.34 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation.
Taking look on ratio analysis, AMD has forward price to earnings ratio of 47.06. The co is calculating price to free cash flow it concluded at 998.61, the low single digit may indicate stock is undervalued and vice versa. On other hand, keeping in mind stable cash flows but few growth prospects make traders to value lower.
To make strengthen these views, the active industry firm has Quick Ratio of 1.30, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the Advanced Micro Devices, Inc. (NASDAQ:AMD) has debt to equity ratio of 3.45, sometimes it remain same with long term debt to equity ratio. The firm has price volatility of 4.40% for a week and 4.60% for a month. Its beta stands at 2.61 times. Narrow down four to firm performance, its weekly performance was 1.03% and monthly performance was -3.43%.