GLOBALFOUNDRIES Inc. Fundamental Analysis (NASDAQ: GFS)
GLOBALFOUNDRIES Inc. (NASDAQ: GFS) shows weak financial fundamentals with a PE ratio of 118.58, profit margin of 2.76%, and ROE of 1.66%. The company generates $7.1B in annual revenue with weak year-over-year growth of 0.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GFS's fundamental strength across five key dimensions:
Efficiency Score
WeakGFS struggles to generate sufficient returns from assets.
Valuation Score
ModerateGFS shows balanced valuation metrics.
Growth Score
WeakGFS faces weak or negative growth trends.
Financial Health Score
ExcellentGFS maintains a strong and stable balance sheet.
Profitability Score
ModerateGFS maintains healthy but balanced margins.
Key Financial Metrics
Is GFS Expensive or Cheap?
P/E Ratio
GFS trades at 118.58 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GFS's PEG of 0.34 indicates potential undervaluation.
Price to Book
The market values GLOBALFOUNDRIES Inc. at 1.97 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.67 times EBITDA. This signals the market has high growth expectations.
How Well Does GFS Make Money?
Net Profit Margin
For every $100 in sales, GLOBALFOUNDRIES Inc. keeps $2.76 as profit after all expenses.
Operating Margin
Core operations generate 11.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.66 in profit for every $100 of shareholder equity.
ROA
GLOBALFOUNDRIES Inc. generates $1.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GLOBALFOUNDRIES Inc. produces operating cash flow of $1.66B, showing steady but balanced cash generation.
Free Cash Flow
GLOBALFOUNDRIES Inc. produces free cash flow of $428.24M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.78 in free cash annually.
FCF Yield
GFS converts 1.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
118.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How GFS Stacks Against Its Sector Peers
| Metric | GFS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 118.58 | 32.70 | Worse (Expensive) |
| ROE | 1.66% | 758.00% | Weak |
| Net Margin | 2.76% | -4312.00% (disorted) | Weak |
| Debt/Equity | 0.14 | 0.96 | Strong (Low Leverage) |
| Current Ratio | 2.58 | 12.15 | Strong Liquidity |
| ROA | 1.16% | 1067467.00% | Weak |
GFS outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GLOBALFOUNDRIES Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
33.76%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
162.64%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
64.74%
Industry Style: Growth, Innovation, High Beta
High Growth