NasdaqGS:INTC

Stock Analysis Report

Executive Summary

Intel Corporation offers computing, networking, data storage, and communication solutions worldwide.

Rewards

PE ratio (13.8x) is below the US market (18.9x)

Earnings are forecast to grow 2.16% per year

Earnings grew by 27.6% over the past year

Pays a high and reliable dividend of 2.12%

Risk Analysis

INTC passed our risk checks.


Snowflake Analysis

Outstanding track record established dividend payer.


Similar Companies

Share Price & News

How has Intel's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: INTC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.4%

INTC

3.4%

US Semiconductor

0.6%

US Market


1 Year Return

30.9%

INTC

52.7%

US Semiconductor

24.6%

US Market

Return vs Industry: INTC underperformed the US Semiconductor industry which returned 48.5% over the past year.

Return vs Market: INTC exceeded the US Market which returned 24.2% over the past year.


Shareholder returns

INTCIndustryMarket
7 Day6.4%3.4%0.6%
30 Day5.9%4.3%3.0%
90 Day20.1%19.2%10.6%
1 Year34.1%30.9%55.8%52.7%27.3%24.6%
3 Year79.3%66.0%92.4%81.7%50.5%40.8%
5 Year113.5%85.7%163.0%137.3%78.9%59.1%

Price Volatility Vs. Market

How volatile is Intel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Intel undervalued compared to its fair value and its price relative to the market?

14.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INTC ($59.43) is trading above our estimate of fair value ($44.66)

Significantly Below Fair Value: INTC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: INTC is good value based on its PE Ratio (13.8x) compared to the Semiconductor industry average (34.5x).

PE vs Market: INTC is good value based on its PE Ratio (13.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: INTC is poor value based on its PEG Ratio (6.4x)


Price to Book Ratio

PB vs Industry: INTC is overvalued based on its PB Ratio (3.5x) compared to the US Semiconductor industry average (3.3x).


Next Steps

Future Growth

How is Intel forecast to perform in the next 1 to 3 years based on estimates from 39 analysts?

1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INTC's forecast earnings growth (2.2% per year) is above the savings rate (1.7%).

Earnings vs Market: INTC's earnings (2.2% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: INTC's earnings are forecast to grow, but not significantly.

Revenue vs Market: INTC's revenue (2.6% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: INTC's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INTC's Return on Equity is forecast to be high in 3 years time (24.7%)


Next Steps

Past Performance

How has Intel performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INTC has high quality earnings.

Growing Profit Margin: INTC's current net profit margins (27.5%) are higher than last year (21.9%).


Past Earnings Growth Analysis

Earnings Trend: INTC's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: INTC's earnings growth over the past year (27.6%) exceeds its 5-year average (13% per year).

Earnings vs Industry: INTC earnings growth over the past year (27.6%) exceeded the Semiconductor industry -15.8%.


Return on Equity

High ROE: INTC's Return on Equity (26%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Intel's financial position?


Financial Position Analysis

Short Term Liabilities: INTC's short term assets ($30.0B) exceed its short term liabilities ($25.1B).

Long Term Liabilities: INTC's short term assets ($30.0B) do not cover its long term liabilities ($34.5B).


Debt to Equity History and Analysis

Debt Level: INTC's debt to equity ratio (38.9%) is considered satisfactory.

Reducing Debt: INTC's debt to equity ratio has increased from 23.8% to 38.9% over the past 5 years.

Debt Coverage: INTC's debt is well covered by operating cash flow (104.3%).

Interest Coverage: INTC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: INTC has a high level of physical assets or inventory.

Debt Coverage by Assets: INTC's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Intel's current dividend yield, its reliability and sustainability?

2.01%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: INTC's dividend (2.12%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: INTC's dividend (2.12%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: INTC's dividends per share have been stable in the past 10 years.

Growing Dividend: INTC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.8%), INTC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: INTC's dividends in 3 years are forecast to be well covered by earnings (25.3% payout ratio).


Next Steps

Management

What is the CEO of Intel's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Bob Swan (59yo)

1.6yrs

Tenure

US$16,706,700

Compensation

Mr. Robert H. Swan, also known as Bob, serves as the Chief Executive Officer and Director at Intel Corporation since January 31, 2019. He was Chief Financial Officer and Executive Vice President of Intel C ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD16.71M) is above average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: Bob's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.1yrs

Average Tenure

53yo

Average Age

Experienced Management: INTC's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

55.5yo

Average Age

Experienced Board: INTC's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: INTC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$5,037,91422 Nov 19
James Goetz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares86,500
Max PriceUS$58.25
BuyUS$5,012,36018 Nov 19
James Goetz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares86,220
Max PriceUS$58.52
SellUS$2,733,21418 Nov 19
Andy Bryant
EntityIndividual
Shares46,932
Max PriceUS$58.28
SellUS$699,09401 Aug 19
Andy Bryant
EntityIndividual
Shares13,609
Max PriceUS$51.37
SellUS$524,54731 Jul 19
Reed Hundt
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$52.45

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Bob Swan (59yo)

    CEO & Director

    • Tenure: 1.6yrs
    • Compensation: US$16.71m
  • Mike Mayberry (62yo)

    Senior VP

    • Tenure: 2yrs
  • George Davis (61yo)

    Executive VP & CFO

    • Tenure: 0.8yrs
  • Steve Rodgers (53yo)

    Executive VP & General Counsel

    • Compensation: US$16.21m
  • Archie Deskus (53yo)

    Senior VP & Chief Information Officer

    • Murthy Renduchintala (54yo)

      Chief Engineering Officer and Group President of Technology

      • Tenure: 4.2yrs
      • Compensation: US$13.13m
    • Ann Kelleher (53yo)

      Senior VP and GM of Manufacturing & Operations

      • Navin Shenoy (45yo)

        Executive VP & GM of Data Platforms Group

        • Tenure: 4.9yrs
        • Compensation: US$10.37m
      • Kevin McBride (49yo)

        VP of Finance

        • Tenure: 2.2yrs
      • Trey Campbell

        Head of Investor Relations


        Board Members

        • Frank Yeary (55yo)

          Independent Director

          • Tenure: 10.8yrs
          • Compensation: US$346.00k
        • Jim Goetz (53yo)

          Independent Director

          • Tenure: 0.2yrs
        • Bob Swan (59yo)

          CEO & Director

          • Tenure: 1.6yrs
          • Compensation: US$16.71m
        • Reed Hundt (71yo)

          Independent Director

          • Tenure: 19yrs
          • Compensation: US$341.00k
        • Risa Lavizzo-Mourey (64yo)

          Independent Director

          • Tenure: 1.8yrs
          • Compensation: US$187.50k
        • Greg Smith (52yo)

          Independent Director

          • Tenure: 2.8yrs
          • Compensation: US$354.25k
        • Omar Ishrak (63yo)

          Independent Chairman & Lead Director

          • Compensation: US$331.00k
        • Andrew Wilson (44yo)

          Independent Director

          • Tenure: 2.3yrs
          • Compensation: US$322.25k
        • King Liu (56yo)

          Independent Director

          • Tenure: 3.5yrs
          • Compensation: US$331.00k
        • Alyssa Henry (49yo)

          Independent Director

          Company Information

          Intel Corporation's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Intel Corporation
          • Ticker: INTC
          • Exchange: NasdaqGS
          • Founded: 1968
          • Industry: Semiconductors
          • Sector: Semiconductors
          • Market Cap: US$272.876b
          • Shares outstanding: 4.35b
          • Website: https://www.intel.com

          Number of Employees


          Location

          • Intel Corporation
          • 2200 Mission College Boulevard
          • Santa Clara
          • California
          • 95054
          • United States

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          INTCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1972
          US_INTCKAS (Kazakhstan Stock Exchange)YesCommon StockKZKZTNov 1972
          INTC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 1972
          INTCSWX (SIX Swiss Exchange)YesCommon StockCHCHFNov 1972
          INLDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1972
          4335SEHK (The Stock Exchange of Hong Kong Ltd.)YesCommon StockHKHKDNov 1972
          INLXTRA (XETRA Trading Platform)YesCommon StockDEEURNov 1972
          INCOENXTBR (Euronext Brussels)YesCommon StockBEUSDNov 1972
          INTCBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPNov 1972
          INTCSNSE (Santiago Stock Exchange)YesCommon StockCLUSDNov 1972
          INT-UETLX (Eurotlx)YesCommon StockITEURNov 1972
          INTCWBAG (Wiener Boerse AG)YesCommon StockATEURNov 1972
          INTCBASE (Buenos Aires Stock Exchange)CEDEARS (EACH 5 REP 1 COM USD0.001)ARARSApr 1999
          ITLC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM SHBRBRLAug 2012

          Biography

          Intel Corporation offers computing, networking, data storage, and communication solutions worldwide. It operates through Client Computing Group, Data Center Group, Internet of Things Group, Non-Volatile Memory Solutions Group, Programmable Solutions Group, and All Other segments. The company offers microprocessors, and system-on-chip and multichip packaging products. It also provides NAND flash memory products primarily used in solid-state drives; and programmable semiconductors and related products for communications, data center, industrial, and military markets. In addition, the company develops computer vision and machine learning, data analysis, localization, and mapping for advanced driver assistance systems and autonomous driving. Its platforms are used in notebooks, systems, and desktops; cloud, enterprise, and communication infrastructure market segments; and retail, automotive, industrial, and various other embedded applications. It serves original equipment manufacturers, original design manufacturers, industrial and communication equipment manufacturers, and cloud service providers. Intel Corporation has a collaboration with Telefonaktiebolaget LM Ericsson (publ) to develop software defined infrastructure for network functions virtualization, distributed cloud, and 5G applications; and Baidu, Inc. to develop nervana neural network processor for training, as well as a strategic collaboration with Corning Incorporated to accelerate the availability of 5G in buildings. The company was founded in 1968 and is based in Santa Clara, California. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/22 23:47
          End of Day Share Price2020/01/22 00:00
          Earnings2019/09/28
          Annual Earnings2018/12/29


          Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.