Intel logged a 0.18% change during today's afternoon session, and is now trading at a price of $25.61 per share.
Intel shares moved -42.73% over the last 52 weeks, with a high of $50.28 and a low of $23.97. During this time, the stock lagged the S&P 500 index by -34.23%. As of January 2022, the company's 50-day average price is $28.12. Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California, in Silicon Valley. The large-cap Consumer Cyclical company is based in Santa Clara, CA. Intel has returned a 5.73% dividend yield over the last 12 months.
Declining EPS Growth Trend with a Highly Leveraged Balance Sheet:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $71,052 | $76,984 | $78,168 | $61,811 |
| Revenue Growth | n/a | 8.35% | 1.54% | -20.93% |
| Gross Margins | 59.31% | 56.65% | 56.05% | 43.46% |
| Gross Margins Growth | n/a | -4.48% | -1.06% | -22.46% |
| Operating Margins | 31.01% | 30.76% | 24.89% | 3.78% |
| Operating Margins Growth | n/a | -0.81% | -19.08% | -84.81% |
| Earnings Per Share | $4.91 | $5.15 | $4.88 | $1.94 |
| EPS Growth | n/a | 4.89% | -5.24% | -60.25% |
| Free Cash Flow (MM) | $16,932 | $21,125 | $10,723 | -$9,411 |
| FCF Growth | n/a | 24.76% | -49.24% | -187.76% |
| Capital Expenditures (MM) | $16,213 | $14,259 | $18,733 | $24,844 |
| Net Debt / EBITDA | 1.15 | 1.2 | 1.38 | 3.04 |
Intel Is Reasonably Priced:
Compared to the Consumer Cyclical sector's average of 22.33, Intel has a trailing twelve month P/E ratio of 13.13 and, according to its EPS guidance of 1.7, an expected P/E ratio of 15.04. The company doesn't issue forward earnings guidance, and the annual average growth rate of its last 5 years of reported EPS is -13.75%. On this basis, the company's PEG ratio is -0.95, which indicates that its shares are overpriced.
However, Intel is likely undervalued in terms of its equity because its P/B ratio is 1.168 compared to its sector average of 3.12. The company's shares are currently trading 0% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:
√(22.5 * 5-year average EPS * book value per share) = √(22.5 * 4.31 * 24.52) = $48.76
