INTEL CORP (INTC)
US4581401001 - Common Stock
We assign a fundamental rating of 4 out of 10 to INTC. INTC was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. While INTC is still in line with the averages on profitability rating, there are concerns on its financial health. INTC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year INTC was profitable.
INTC had a positive operating cash flow in the past year.
In the past 5 years INTC has always been profitable.
Each year in the past 5 years INTC had a positive operating cash flow.
1.2 Ratios
INTC has a Return On Assets (2.11%) which is in line with its industry peers.
INTC's Return On Equity of 3.84% is in line compared to the rest of the industry. INTC outperforms 50.94% of its industry peers.
With a Return On Invested Capital value of 0.34%, INTC perfoms like the industry average, outperforming 43.40% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for INTC is significantly below the industry average of 10.71%.
The last Return On Invested Capital (0.34%) for INTC is well below the 3 year average (4.70%), which needs to be investigated, but indicates that INTC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.11% | ||
| ROE | 3.84% | ||
| ROIC | 0.34% |
ROA(3y)5.69%
ROA(5y)9.23%
ROE(3y)10.11%
ROE(5y)16.64%
ROIC(3y)4.7%
ROIC(5y)8.86%
1.3 Margins
The Profit Margin of INTC (7.36%) is comparable to the rest of the industry.
INTC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 1.29%, INTC is in line with its industry, outperforming 43.40% of the companies in the same industry.
In the last couple of years the Operating Margin of INTC has declined.
INTC has a Gross Margin (41.49%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of INTC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.29% | ||
| PM (TTM) | 7.36% | ||
| GM | 41.49% |
OM growth 3Y-87.69%
OM growth 5Y-71.93%
PM growth 3Y-51.22%
PM growth 5Y-36.31%
GM growth 3Y-10.59%
GM growth 5Y-8.3%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), INTC is destroying value.
Compared to 1 year ago, INTC has more shares outstanding
INTC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for INTC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.83 indicates that INTC is not a great score, but indicates only limited risk for bankruptcy at the moment.
INTC has a Altman-Z score of 1.83. This is in the lower half of the industry: INTC underperforms 66.04% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that INTC is not too dependend on debt financing.
The Debt to Equity ratio of INTC (0.45) is worse than 70.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.83 |
ROIC/WACC0.03
WACC11.23%
2.3 Liquidity
A Current Ratio of 1.57 indicates that INTC should not have too much problems paying its short term obligations.
INTC's Current ratio of 1.57 is on the low side compared to the rest of the industry. INTC is outperformed by 80.19% of its industry peers.
A Quick Ratio of 1.14 indicates that INTC should not have too much problems paying its short term obligations.
The Quick ratio of INTC (1.14) is worse than 78.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
INTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.04%, which is quite impressive.
The earnings per share for INTC have been decreasing by -25.69% on average. This is quite bad
Looking at the last year, INTC shows a decrease in Revenue. The Revenue has decreased by -2.09% in the last year.
The Revenue has been decreasing by -5.21% on average over the past years.
EPS 1Y (TTM)34.04%
EPS 3Y-41.93%
EPS 5Y-25.69%
EPS growth Q2Q550%
Revenue 1Y (TTM)-2.09%
Revenue growth 3Y-11.36%
Revenue growth 5Y-5.21%
Revenue growth Q2Q8.61%
3.2 Future
INTC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.33% yearly.
INTC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.14% yearly.
EPS Next Y31.84%
EPS Next 2Y48.25%
EPS Next 3Y42.8%
EPS Next 5Y37.33%
Revenue Next Year6.37%
Revenue Next 2Y8.96%
Revenue Next 3Y9.3%
Revenue Next 5Y11.14%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.26, which means the current valuation is very expensive for INTC.
71.70% of the companies in the same industry are more expensive than INTC, based on the Price/Earnings ratio.
INTC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.15, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.92, the valuation of INTC can be described as correct.
Based on the Price/Forward Earnings ratio, INTC is valued cheaper than 83.02% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of INTC to the average of the S&P500 Index (20.20), we can say INTC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 13.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INTC indicates a somewhat cheap valuation: INTC is cheaper than 79.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.58 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
INTC's earnings are expected to grow with 42.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)N/A
EPS Next 2Y48.25%
EPS Next 3Y42.8%
5. Dividend
5.1 Amount
INTC has a Yearly Dividend Yield of 1.56%. Purely for dividend investing, there may be better candidates out there.
The stock price of INTC dropped by -26.84% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.85, INTC pays a better dividend. On top of this INTC pays more dividend than 87.74% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, INTC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
The dividend of INTC decreases each year by -9.32%.
INTC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-9.32%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
51.77% of the earnings are spent on dividend by INTC. This is a bit on the high side, but may be sustainable.
DP51.77%
EPS Next 2Y48.25%
EPS Next 3Y42.8%
INTEL CORP
NASDAQ:INTC (5/17/2024, 7:06:18 PM)
After market: 31.86 +0.03 (+0.09%)31.83
-0.2 (-0.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap135.50B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 13.92 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.79
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.11% | ||
| ROE | 3.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.29% | ||
| PM (TTM) | 7.36% | ||
| GM | 41.49% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)34.04%
EPS 3Y-41.93%
EPS 5Y
EPS growth Q2Q
EPS Next Y31.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.09%
Revenue growth 3Y-11.36%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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OCF growth 3Y
OCF growth 5Y