GlobalFoundries logged a -2.91% change during today's afternoon session, and is now trading at a price of $65.83 per share. The S&P 500 index moved -0.31% and the Nasdaq posted a -0.64% change.
GlobalFoundries shares moved -9.15% over the last 52 weeks, with a high of $75.48 and a low of $36.81. During this time, the stock outperformed the S&P 500 index by 4.97%. As of January 2022, the company's 50-day average price is $64.0. GLOBALFOUNDRIES Inc. is a global semiconductor foundry. The large-cap Technology company is based in Malta, NY. GlobalFoundries has not offered any dividends in the last year.
Snapshot of the Company's Negative and Irregular Margins:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $5,813 | $4,851 | $6,585 | $8,108 |
| Revenue Growth | n/a | -16.55% | 35.76% | 23.13% |
| Gross Margins | -9.16% | -14.69% | 15.39% | 27.61% |
| Gross Margins Growth | n/a | -60.37% | 204.77% | 79.4% |
| Operating Margins | -27.95% | -34.14% | -0.91% | 14.39% |
| Operating Margins Growth | n/a | -22.15% | 97.33% | 1681.32% |
| Net Margins | -23.59% | -27.78% | -3.8% | 17.86% |
| Net Margins Growth | n/a | -17.76% | 86.32% | 570.0% |
| Earnings Per Share | -$2.58 | -$2.53 | -$0.49 | $2.62 |
| EPS Growth | n/a | 1.94% | 80.63% | 634.69% |
| Diluted Shares (MM) | 532 | 532 | 508 | 552 |
| Free Cash Flow (MM) | -$276 | $413 | $1,073 | -$435 |
| FCF Growth | n/a | 249.79% | 159.48% | -140.55% |
| Capital Expenditures (MM) | $773 | $592 | $1,766 | $3,059 |
| Net Debt / EBITDA | 1.07 | 1.21 | -0.51 | 0.05 |
GlobalFoundries Is Currently Fairly Valued:
Compared to the Technology sector's average of 27.16, GlobalFoundries has a trailing twelve month P/E ratio of 24.2 and, according to its EPS guidance of 3.19, an expected P/E ratio of 20.63. GlobalFoundries's PEG ratio is 0.15 based on its 157.8% annual average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 13.05%, because the growth rate implied by GlobalFoundries's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 1.85, which suggests that the company's shares are actually overvalued.
However, GlobalFoundries is likely undervalued in terms of its equity because its P/B ratio is 3.949 compared to its sector average of 6.23. However, the company's shares are now trading 101.18% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * EPS * book value per share) = √(22.5 * 2.62 * 18.16) = $32.72
GlobalFoundries Is the Subject of Mixed Market Indicators:
16 analysts are following GlobalFoundries and have set target prices ranging from $38.0 to $100.0 per share. On average, they have given the company a rating of buy. At the current price of $65.83, GFS is trading -15.61% away from its average analyst target price of $78.0 per share, implying an analyst consensus of some upside potential for the stock.
The company has an above average percentage of its shares sold short since 14.77% of the company's shares are tied to short positions. Institutions own 105.07% of GlobalFoundries's shares, while the insider ownership rate stands at 0.0%. The biggest shareholder is FMR, LLC with a 6% stake in the company worth approximately $2,111,469,071.
