GlobalFoundries Inc. Ordinary Shares (GFS)

FairStock Score: 37/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses at sensible prices. GlobalFoundries is a contract chipmaker with 14,000 employees, providing mainstream wafer fabrication. It has some switching costs and strategic geographic value, but it competes in a capital-intensive, cyclical foundry industry. The balance sheet is conservative: debt-to-equity is 0.14, Altman Z-Score is 3.53, and Piotroski F-Score is 7/9. However, returns on capital are modest: ROE 6.17% and ROCE 2.98%. Free cash flow is positive at $796.0M trailing twelve months, but the FCF yield is only 2.3% against a $34.8B market cap. In the latest reported quarter, fiscal Q2 2026, revenue was $1.8B and net income was $166.0M, a 9.29% margin. Yet provided profit growth is -27.19% and revenue growth is 5.81%, so the trajectory is not inspiring. At the 2026-10-13 close of $46.70, FairStock calculations show P/E 36.48, P/B 2.17, EV/EBITDA 16.00, and a Graham Number of $24.91, leaving a margin of safety of -87.47%. The dividend yield is 1.00%. FairStock Score is 31/100, and the Lynch category is none because only 0 years of filed results are available and 3 are needed. This looks like a fair business at an expensive price. I would want better returns on capital and a wider discount before getting excited.

In plain English: GlobalFoundries makes semiconductor chips for other companies. In the latest reported quarter, fiscal Q2 2026, it earned $166.0M on $1.8B of revenue, but profits have been shrinking and the company does not earn much profit from its assets. At $46.70 per share, the stock looks expensive compared with recent profits and accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer