Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Globalfoundries Inc (GFS): 2025 Demand Recovery Expected—Will Chips Act & Trump’s Return Boost Prospects or Will Rising Price Pressures from Chinese Competitors Limit Growth?
GlobalFoundries (GFS) delivered strong Q3 FY2024 results, with revenue up +7% QoQ to $1.739 billion, exceeding expectations by $14.61 million. Non-IFRS EPS of $0.41 and GAAP EPS of $0.32 beat estimates by $0.08 each, supported by disciplined cost management and robust free cash flow of $216 million. Key growth drivers include a 14% sequential increase in smart mobile devices revenue, fueled by RF content gains, and stable momentum in IoT and silicon photonics design wins, addressing high-growth applications like AI and next-gen data centers. Automotive, while down 5% QoQ, remains a strategic growth area with high-confidence design wins across radar and powertrain applications. Strategically, GFS benefits from a differentiated global footprint and a growing pipeline of sole-sourced design wins, aligned with $17 billion in long-term agreements. The partnership with NXP and capacity diversification at its Malta fab position it for gains in automotive, IoT, and RF markets. Risks include inventory softness in IoT and automotive, heightened competition from Chinese and Taiwanese peers, and pricing pressures. Management’s guidance for Q4 reflects continued growth, with FY2024 free cash flow on track to near $1 billion. With strong execution and opportunities under the U.S. Chips Act, can GlobalFoundries sustain its growth trajectory while navigating intensifying competition and pricing challenges?
