GFSGLOBALFOUNDRIES Inc.
Is the business good?
The checks split: earnings fully cash-backed (2.2×), but margins compressing.
Operating profit is fully backed by cash.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
A balanced mix of margins, efficiency, and leverage. ROE 1% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GFS?
GLOBALFOUNDRIES Inc. earns 5.6% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 3.4 points below what the capital costs: growth destroys value
- Operating margin
- 12%
Operating margin · Semiconductors median 7.5% · 12 months to Q4 2025
- Cash conversion
- 2.23×
Cash conversion · operating cash flow covers the operating profit after tax
- R&D as % of revenue
- 7.6%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −34% |
| FY2021 | −0.91% |
| FY2022 | 14% |
| FY2023 | 15% |
| FY2024 | −3.2% |
| FY2025 | 12% |
Details›
- Gross margin12 months to Q4 2025
- 25%
- Operating margin12 months to Q4 2025
- 12%
- Net margin12 months to Q4 2025
- 13%
- Free cash flow margin
- 15%
- R&D as % of revenue
- 7.6%
- Revenue, trailing twelve months
- $6.79B
- Free cash flow, trailing twelve months
- $1.01B
- Net income, trailing twelve months
- $885M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.6%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.