Last Updated: 13 Nov 2024
Executive Summary
Globalfoundries Inc. (GFS) is a leading global semiconductor foundry with a strong financial performance and positive growth prospects. The company's latest stock price of $42.09 reflects its solid fundamentals and potential for future growth.
Company Overview
Globalfoundries is headquartered in Malta, New York, and provides semiconductor manufacturing services to customers worldwide. The company operates advanced fabrication facilities and offers a broad portfolio of semiconductor technologies.
Fundamental Analysis
Revenue: GFS reported revenue of $6.77 billion for the trailing twelve months (TTM), indicating a 0.061% decline year-over-year.
Earnings: The company's diluted EPS was $1.32 for the TTM, with a -0.289% decline in quarterly earnings growth year-over-year.
Profitability: GFS has a gross profit margin of 33.1%, an operating margin of 10.7%, and a net profit margin of 11%.
Valuation: The stock is currently trading at a trailing PE ratio of 32.35 and a forward PE ratio of 19.72.
Technical Analysis
52-Week Range: The stock has traded between $35.85 and $62.61 in the past year.
Moving Averages: GFS is currently trading below its 50-day moving average of $40.28 and its 200-day moving average of $48.24.
Relative Strength Index (RSI): The RSI is currently at 38.45, indicating that the stock is in the oversold territory.
Short Term Outlook
In the short term, GFS may face headwinds due to the ongoing global economic slowdown and geopolitical uncertainties. The company's revenue and earnings growth may be impacted by reduced demand from its customers. However, the company's strong balance sheet and market position should provide some support.
Long Term Outlook
Over the long term, GFS is well-positioned to benefit from the growing demand for semiconductors in various industries, including automotive, computing, and mobile devices. The company's investments in advanced technologies and capacity expansion should drive future growth.
Analyst Recommendations
Analysts have a mixed outlook on GFS. Four analysts have a "Strong Buy" rating, five have a "Buy" rating, eight have a "Hold" rating, and none have a "Sell" or "Strong Sell" rating. The consensus analyst target price is $50.19, implying a potential upside of 19.2% from the current stock price.
