One-glance verdict
Overvalued
$28.77 our estimate vs market $45.21
Wall Street consensus: $76.00 (164.2% higher than our fair-value estimate)
57% above our estimate, beyond the bull case
Fundamentals snapshot
GLOBALFOUNDRIES Inc.
GFS · NMS · Technology · Semiconductors
Current price
$45.21
52-week range
$31.59 - $92.55
Market cap
$24.81B
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
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 0.6% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Stock trades 40.1% 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 is a specialized factory that builds computer chips for other tech companies who design them. It makes money by manufacturing the essential electronic "brains" that power everything from smartphones and cars to home appliances. As one of the world's largest chipmakers, the company is a vital link in the global technology supply chain (the complex network of businesses involved in creating and delivering a product to you).
How the company got here
GLOBALFOUNDRIES was formed in 2009 when technology company AMD spun off its manufacturing division. This move allowed AMD to focus on designing chips without the expense of owning and operating its own factories. Key moments in its history include acquiring Chartered Semiconductor in 2010 and IBM's microelectronics business in 2015, which expanded its manufacturing capabilities and customer base. In 2018, the company made a strategic shift to focus on specialized semiconductor technologies rather than the most cutting-edge, high-performance chips. The company went public with an initial public offering (IPO), which is when a private company first sells shares of stock to the public, in 2021.
What it actually does
GLOBALFOUNDRIES is a semiconductor foundry, which means it manufactures computer chips that other companies design. Think of it like a specialized factory for hire; companies like Qualcomm, AMD, and others create the blueprints for the chips, and GLOBALFOUNDRIES has the advanced facilities and expertise to actually produce them. These chips are tiny electronic components that are the brains of countless devices you use every day. They are found in everything from smartphones and cars to data centers and industrial equipment.
Smart Mobile Devices
This is the company's largest business segment, making up a significant portion of its revenue. It involves manufacturing chips that are essential for smartphones and other mobile gadgets. These aren't the main processors, but rather specialized chips that handle things like connecting to cellular networks, Wi-Fi, and Bluetooth. Companies that design these wireless communication chips pay GLOBALFOUNDRIES to produce them in high volumes.
Home & Industrial IoT
This segment focuses on producing chips for the growing world of "Internet of Things" (IoT) devices, which are everyday objects that are connected to the internet. This includes everything from smart home devices and wearable fitness trackers to sensors used in factories and industrial equipment. These chips are designed to be very power-efficient and are a key part of the company's business. The customers are companies that design these low-power, connected chips for a huge variety of applications.
Automotive
This fast-growing part of the business manufactures chips specifically for the automotive industry. Modern cars contain hundreds of semiconductors that control everything from the infotainment system and safety features to the engine and power management. GLOBALFOUNDRIES works with companies that design these specialized, highly reliable chips that can withstand the tough conditions inside a vehicle. This is a growing area as cars become more intelligent and electric.
Communications Infrastructure & Data Center
This segment produces chips that are the backbone of the internet and communication networks. This includes components for data centers, which are massive facilities that store and process the data for websites and online services, as well as for cellular base stations and other networking equipment. The customers are companies that design high-performance chips for moving and processing large amounts of data efficiently.
What management is betting on now
Management's strategy is centered on being a leader in specialized, feature-rich chips rather than trying to compete in the race for the absolute smallest and fastest processors. They are focusing on technologies that are critical for growth areas like 5G, automotive, and the Internet of Things. The company is also emphasizing its global manufacturing footprint, with factories in the U.S., Europe, and Asia, to provide customers with a secure and geographically diverse supply chain (a network of companies that get a product from its raw materials to the final customer). This is particularly important to customers who are concerned about disruptions in any single region.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $28.77 vs current price $45.21
Wall Street consensus is the average analyst price target: $76.00 (164.2% higher than our fair-value estimate).
Our most-likely fair value is $28.77 a share — about 36.4% below today's price of $45.21, 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 weaker than most peers shown here.
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 $2.01B Interest coverage 28.55x +79% vs GFS Carries about 1.8x more debt cushion than GFS.
Total debt $141.70M Interest coverage 53.08x +233% vs GFS Carries about 3.3x more debt cushion than GFS.
What you should know
The case for and against GFS
3 Rewards
2 Risks
Rewards
-
Revenue grew 0.6% last year.
-
Free cash flow was positive in 3/10 years.
-
Trades at 35.3x P/E vs peer median 53.9x (34.5% cheaper).
Risks
-
Stock trades 40.1% above its 5-year average P/E.
-
Operating margin compressed from 15.6% to 9.7% over 3 years.
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)
35.32x
Forward P/E
17.28x
P/B
2.10x
P/S
3.58x
EV/EBITDA
12.21x
PEG ratio
0.66x
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
1.1%
Payout ratio
9.4%
Last ex-div date
2026-09-23