INTEL CORP (INTC)

US4581401001 - Common Stock

31.38  +0.46 (+1.49%)

Fundamental Rating

4

Taking everything into account, INTC scores 4 out of 10 in our fundamental rating. INTC was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. There are concerns on the financial health of INTC while its profitability can be described as average. INTC has a correct valuation and a medium growth rate.



4

1. Profitability

1.1 Basic Checks

INTC had positive earnings in the past year.
In the past year INTC had a positive cash flow from operations.
Each year in the past 5 years INTC has been profitable.
Each year in the past 5 years INTC had a positive operating cash flow.

1.2 Ratios

The Return On Assets of INTC (2.11%) is comparable to the rest of the industry.
INTC's Return On Equity of 3.84% is in line compared to the rest of the industry. INTC outperforms 52.78% of its industry peers.
INTC has a Return On Invested Capital (0.34%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for INTC is significantly below the industry average of 10.85%.
The 3 year average ROIC (4.70%) for INTC is well above the current ROIC(0.34%). The reason for the recent decline needs to be investigated.
Industry RankSector 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

INTC has a Profit Margin (7.36%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of INTC has declined.
With a Operating Margin value of 1.29%, INTC perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
INTC's Operating Margin has declined in the last couple of years.
INTC has a Gross Margin (41.49%) which is comparable to the rest of the industry.
INTC's Gross Margin has declined in the last couple of years.
Industry RankSector 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

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so INTC is destroying value.
Compared to 1 year ago, INTC has more shares outstanding
The number of shares outstanding for INTC has been reduced compared to 5 years ago.
INTC has a worse debt/assets ratio than last year.

2.2 Solvency

INTC has an Altman-Z score of 1.80. This is a bad value and indicates that INTC is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.80, INTC is not doing good in the industry: 64.81% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.45 indicates that INTC is not too dependend on debt financing.
INTC's Debt to Equity ratio of 0.45 is on the low side compared to the rest of the industry. INTC is outperformed by 69.44% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF N/A
Altman-Z 1.8
ROIC/WACC0.03
WACC11.3%

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 82.41% of its industry peers.
INTC has a Quick Ratio of 1.14. This is a normal value and indicates that INTC is financially healthy and should not expect problems in meeting its short term obligations.
INTC's Quick ratio of 1.14 is on the low side compared to the rest of the industry. INTC is outperformed by 79.63% of its industry peers.
Industry RankSector Rank
Current Ratio 1.57
Quick Ratio 1.14

5

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.
INTC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -25.69% yearly.
The Revenue has decreased by -2.09% in the past year.
Measured over the past years, INTC shows a decrease in Revenue. The Revenue has been decreasing by -5.21% on average per year.
EPS 1Y (TTM)34.04%
EPS 3Y-41.93%
EPS 5Y-25.69%
EPS Q2Q%550%
Revenue 1Y (TTM)-2.09%
Revenue growth 3Y-11.36%
Revenue growth 5Y-5.21%
Sales Q2Q%8.61%

3.2 Future

The Earnings Per Share is expected to grow by 37.33% on average over the next years. This is a very strong growth
Based on estimates for the next years, INTC will show a quite strong growth in Revenue. The Revenue will grow by 11.14% on average per year.
EPS Next Y7.43%
EPS Next 2Y38.28%
EPS Next 3Y37.37%
EPS Next 5Y37.33%
Revenue Next Year3.36%
Revenue Next 2Y7.78%
Revenue Next 3Y8.41%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 24.90 indicates a rather expensive valuation of INTC.
INTC's Price/Earnings ratio is a bit cheaper when compared to the industry. INTC is cheaper than 75.00% of the companies in the same industry.
INTC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.24.
Based on the Price/Forward Earnings ratio of 15.78, the valuation of INTC can be described as correct.
84.26% of the companies in the same industry are more expensive than INTC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of INTC to the average of the S&P500 Index (19.93), we can say INTC is valued slightly cheaper.
Industry RankSector Rank
PE 24.9
Fwd PE 15.78

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, INTC is valued cheaply inside the industry as 86.11% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.13

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates INTC does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as INTC's earnings are expected to grow with 37.37% in the coming years.
PEG (NY)3.35
PEG (5Y)N/A
EPS Next 2Y38.28%
EPS Next 3Y37.37%

4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.64%, INTC has a reasonable but not impressive dividend return.
In the last 3 months the price of INTC has falen by -27.49%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.79, INTC pays a better dividend. On top of this INTC pays more dividend than 89.81% of the companies listed in the same industry.
INTC's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
Industry RankSector Rank
Dividend Yield 1.64%

5.2 History

The dividend of INTC decreases each year by -9.32%.
INTC has been paying a dividend for at least 10 years, so it has 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 2Y38.28%
EPS Next 3Y37.37%

INTEL CORP

NASDAQ:INTC (6/12/2024, 8:57:09 AM)

31.38

+0.46 (+1.49%)

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 Cap133.58B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.64%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 24.9
Fwd PE 15.78
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)3.35
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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)
High Growth Momentum
Growth
EPS 1Y (TTM)34.04%
EPS 3Y-41.93%
EPS 5Y
EPS Q2Q%
EPS Next Y7.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.09%
Revenue growth 3Y-11.36%
Revenue growth 5Y
Sales 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
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y