Globalfoundries Inc Intrinsic Stock Value – GLOBALFOUNDRIES INC Reports Financial Results for Third Quarter of FY2023

🌥️Earnings Overview

On November 7 2023, GLOBALFOUNDRIES INC ($NASDAQ:GFS) announced its financial results for the third quarter of FY2023, ending September 30 2023. Revenues for the quarter amounted to USD 1852.0 million, representing a decrease of 10.7% compared to the same period in the prior year. The company’s net income during the quarter was USD 249.0 million, a decrease of 26.1% year over year.

Price History

The company’s stock opened at $54.5 and closed at $54.3, representing a 5.1% increase from its prior closing price of $51.7. This performance is in line with the overall rise in the semiconductor industry that has seen a surge in demand due to the ongoing pandemic and other worldwide economic factors.

In addition, the company’s bottom line was further strengthened by a decrease in operating costs and research and development expenses. GLOBALFOUNDRIES INC also made progress in its strategic initiatives during the quarter, such as expanding its portfolio of products and services, increasing its investments in advanced technologies, and launching its new digital ecosystem platform. The company also continued to strengthen its customer relationships, executing multiple long-term supply agreements during the quarter and increasing its customer base across multiple segments. The company’s strong performance in both revenue and net income, coupled with its strategic initiatives, bodes well for future growth and profitability. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Globalfoundries Inc. More…

Cash Flow Snapshot

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Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Globalfoundries Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Globalfoundries Inc are shown below. More…

Analysis – Globalfoundries Inc Intrinsic Stock Value

We have conducted an analysis of GLOBALFOUNDRIES INC‘s wellbeing and found that the intrinsic value of their share is around $56.9. This figure was calculated using our proprietary Valuation Line. Currently, GLOBALFOUNDRIES INC stock is traded at $54.3, which we consider to be a fair price that is undervalued by 4.5%. More…

Peers

With the technological advances in the semiconductor industry, the competition between foundries has become increasingly fierce. GLOBALFOUNDRIES Inc, a leading foundry company, has been locked in a battle with its competitors, Advanced Micro Devices Inc, Taiwan Semiconductor Manufacturing Co Ltd, and Intel Corp. In order to maintain its competitive edge, GLOBALFOUNDRIES has made significant investments in cutting-edge manufacturing technologies and has been aggressively expanding its production capacity.

– Advanced Micro Devices Inc ($NASDAQ:AMD)

Advanced Micro Devices, Inc. (AMD) is an American multinational semiconductor company based in Santa Clara, California, that develops computer processors and related technologies for business and consumer markets. AMD’s main products include microprocessors, motherboard chipsets, embedded processors and graphics processors for servers, workstations and personal computers, and embedded systems applications.

As of 2022, AMD has a market cap of $93.57 billion and a return on equity (ROE) of 4.13%. The company’s products are used in a variety of electronic devices, including personal computers, game consoles, and servers. AMD is a leading supplier of microprocessor technology for the PC market.

– Taiwan Semiconductor Manufacturing Co Ltd ($TWSE:2330)

Taiwan Semiconductor Manufacturing Co Ltd is a semiconductor foundry. The company has a market cap of 10.29T as of 2022 and a Return on Equity of 22.34%. Taiwan Semiconductor Manufacturing Co Ltd is the world’s largest dedicated semiconductor foundry and one of the largest fabless semiconductor companies. The company offers a comprehensive set of IC design enablement tools, libraries, IPs, design services, advanced packaging, test and yield optimization solutions to help customers accelerate time-to-market.

– Intel Corp ($NASDAQ:INTC)

Intel Corp. is an American multinational corporation and technology company headquartered in Santa Clara, California, in the Silicon Valley. It is the world’s largest and highest valued semiconductor chip manufacturer based on revenue and is the inventor of the x86 series of microprocessors, the processors found in most personal computers (PCs). Intel supplies processors for computer system manufacturers such as Apple, Lenovo, HP, and Dell. Intel also manufactures motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphics chips, embedded processors and other devices related to communications and computing.

The company’s market cap is $108.48B as of 2022 and has a return on equity of 19.16%. Intel Corp is a technology company that designs and manufactures computer processors and other components. The company is headquartered in Santa Clara, California, in the Silicon Valley.

Summary

GLOBALFOUNDRIES INC reported its financial results for the third quarter of FY2023, with total revenue of USD 1852.0 million and net income of USD 249.0 million, representing a 10.7% and 26.1% decrease from the same period last year, respectively. Despite the lower earnings, the company’s stock price rose on the same day, potentially due to optimism in its future prospects. Investors should consider the long-term financial stability of the company along with its competitive position within the industry when making their investment decisions. With its robust financial position and strong customer relationships, GLOBALFOUNDRIES INC appears to be a viable choice for investors.