One-glance verdict
Overvalued
$28.01 our estimate vs market $47.66
Wall Street consensus: $74.68 (166.6% higher than our fair-value estimate)
70% above our estimate, beyond the bull case
Fundamentals snapshot
GLOBALFOUNDRIES Inc.
GFS · NMS · Technology · Semiconductors
Current price
$47.66
52-week range
$32.02 - $92.55
Market cap
$26.57B
Balance sheet
Healthy
15.94x Strong cushion
Net cash $679.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 0.6% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Stock trades 47.7% above its 5-year average P/E.
- Risk Operating margin compressed from 15.6% to 9.7% over 3 years.
What this company does
GLOBALFOUNDRIES Inc.
GLOBALFOUNDRIES (GFS) makes the tiny computer chips that power many everyday electronics, like smartphones and cars. Their main money comes from selling these chips to other companies that design them but don't make them themselves. This is important because without chip makers like GFS, the technology we rely on wouldn't exist.
How the company got here
GlobalFoundries (GF) was born in 2009 when Advanced Micro Devices (AMD), a company that designs computer chips, spun off its manufacturing operations. This move allowed AMD to focus solely on designing chips, while GF took over the factories and the job of actually making them. Initially, GF was a joint venture between AMD and Abu Dhabi's sovereign wealth fund, Mubadala Investment Company. Over the years, GF grew by acquiring other semiconductor manufacturing businesses, including Chartered Semiconductor in 2010 and IBM's microelectronics business in 2015. In 2021, GlobalFoundries became a publicly traded company, meaning its shares can be bought and sold on the stock market, though Mubadala remains a major owner. Today, GF is one of the largest semiconductor foundries in the world, meaning it manufactures chips designed by many different companies.
What it actually does
GlobalFoundries is a semiconductor foundry, which means it manufactures computer chips for other companies that design them. Think of it like a custom t-shirt shop: companies like Apple or Qualcomm design a unique chip, and then they send those designs to GlobalFoundries to be physically made. GF doesn't design or sell its own branded chips to consumers; instead, it provides the manufacturing services. These chips are the brains behind many electronic devices, from smartphones and cars to computers and home appliances. GF produces a wide range of these essential components, focusing on technologies that are crucial for various industries.
Smart mobile devices
This is the largest part of GlobalFoundries' business, making up about 45% of its revenue. GF manufactures chips that are essential for smartphones and other wireless devices. These chips handle critical functions like processing information, managing power, and enabling wireless communication. Companies that design mobile processors, radio frequency modems, and power management units for phones and tablets are the primary customers in this segment. The demand here is driven by the constant innovation and upgrades in the mobile technology market.
Home & industrial IoT
This segment, accounting for roughly 19% of revenue, focuses on chips for the 'Internet of Things' (IoT). This includes a wide variety of devices that connect to the internet, such as smart home appliances, wearable technology, and industrial equipment used in factories. GF produces chips that enable these devices to communicate, sense their environment, and perform specific functions. The growth in this area is fueled by the increasing trend of connecting everyday objects to the internet for greater convenience and efficiency.
Automotive
GlobalFoundries' automotive segment represents about 18% of its revenue and is a key growth area. The company manufactures specialized chips that are crucial for modern vehicles. These include components that enhance safety features, improve engine performance and efficiency, and enable advanced driver-assistance systems (ADAS). As cars become more sophisticated with features like self-driving capabilities and advanced infotainment systems, the demand for these specialized, reliable chips continues to rise.
Data center & communications infrastructure
This segment, contributing around 8% of GlobalFoundries' revenue, is vital for the backbone of the internet and modern computing. GF produces chips used in data centers, which store and process vast amounts of information, and in communication networks that transmit data. These chips are designed for high-speed data transmission and efficient power management, supporting the ever-increasing demand for data and connectivity. The growth in cloud computing and 5G networks directly drives the need for these advanced semiconductor components.
What management is betting on now
GlobalFoundries is strategically focusing on manufacturing 'differentiated' chips rather than competing at the absolute cutting edge of technology. This means they are concentrating on specialized areas like radio frequency (RF) chips for wireless communication, power management chips for efficiency, and silicon photonics for high-speed data transfer. They are also investing in technologies that support artificial intelligence (AI) and the growing automotive market. By focusing on these areas where performance, power efficiency, and reliability are more critical than just having the smallest chip size, GF aims to be an indispensable partner for its customers and secure long-term growth.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $28.01 vs current price $47.66
Wall Street consensus is the average analyst price target: $74.68 (166.6% higher than our fair-value estimate).
Our most-likely fair value is $28.01 a share — about 41.2% below today's price of $47.66, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $679.0M - more cash than debt. Interest coverage 15.9x.
Net debt
$-679.00M
Interest coverage
15.94x
GLOBALFOUNDRIES Inc.'s profit covers its interest bill about 15.9 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
GFS
BASELINE
GLOBALFOUNDRIES Inc.
Total debt $1.68B Interest coverage 15.94x This is the baseline the peer rows are being compared against.
Total debt $141.70M Interest coverage 53.08x +233% vs GFS Carries about 3.3x more debt cushion than GFS.
Total debt $4.71B Interest coverage 10.59x -34% vs GFS Carries about 1.5x less debt cushion than GFS.
Total debt $1.96B Interest coverage 28.55x +79% vs GFS Carries about 1.8x more debt cushion than GFS.
Total debt $10.98B Interest coverage 6.51x -59% vs GFS Carries about 2.4x less debt cushion than GFS.
Total debt $253.34M Interest coverage -0.19x -100% vs GFS This peer has almost no interest-payment cushion compared with GFS.
What you should know
The case for and against GFS
3 Rewards
3 Risks
Rewards
-
Revenue grew 0.6% last year.
-
Free cash flow was positive in 3/10 years.
-
Dividend yield is 1.0% with 1-year payout history.
Risks
-
Stock trades 47.7% above its 5-year average P/E.
-
Operating margin compressed from 15.6% to 9.7% over 3 years.
-
Insider ownership is only 0.1% (peer median: 0.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
37.23x
Forward P/E
18.13x
P/B
2.21x
P/S
3.83x
EV/EBITDA
12.71x
PEG ratio
0.70x
Profitability
How much profit each dollar creates
Gross margin
27.1%
Operating margin
9.7%
Net margin
10.3%
ROE
6.2%
ROA
3.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.14x
Current ratio
2.48x
Quick ratio
1.73x
Total debt
$1.68B
Total cash
$2.36B
Growth
How the business has been compounding
Revenue TTM
$6.94B
Revenue 5Y CAGR
-5.7%
EPS TTM
1.28
EPS 5Y CAGR
-15.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.73B
Free CF TTM
$1.01B
FCF margin
14.5%
Dividend
Shareholder payout
Yield
1.0%
Payout ratio
9.4%
Last ex-div date
2026-09-23