Now trading at a price of $33.84, Intel has moved -0.4% so far today.
As of April 2023, the company's 50-day average price was $31.58. Intel Corporation designs, develops, manufactures, markets, and sells computing and related products worldwide. Based in Santa Clara, CA, the large-cap Technology company has 131,900 full time employees. Intel has offered a 4.3% dividend yield over the last 12 months.
Shareholders Are Confronted With a Declining EPS Growth Trend:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $71,965 | $77,867 | $79,024 | $63,054 |
| Gross Margins | 58.6% | 56.0% | 55.4% | 42.6% |
| Operating Margins | 31.2% | 30.7% | 27.9% | 3.7% |
| Net Margins | 29.25% | 26.84% | 25.14% | 12.71% |
| Net Income (MM) | $21,048 | $20,899 | $19,868 | $8,014 |
| Net Interest Expense (MM) | $484 | -$504 | -$482 | $1,166 |
| Depreciation & Amort. (MM) | -$10,826 | -$12,239 | -$11,792 | -$13,035 |
| Earnings Per Share | $4.71 | $4.94 | $4.86 | -$0.7 |
| EPS Growth | n/a | 4.88% | -1.62% | -114.4% |
| Diluted Shares (MM) | 4,473 | 4,232 | 4,090 | 4,171 |
| Free Cash Flow (MM) | $16,932 | $20,931 | $9,662 | -$9,617 |
| Capital Expenditures (MM) | -$16,213 | -$14,453 | -$20,329 | -$25,050 |
| Net Current Assets (MM) | -$27,781 | -$24,804 | -$15,297 | -$28,410 |
| Current Ratio | 1.4 | 1.91 | 2.1 | 1.57 |
| Long Term Debt (MM) | $25,308 | $33,897 | $33,510 | $37,684 |
| Net Debt / EBITDA | 0.7 | 0.81 | 0.98 | 1.41 |
Intel has declining revenues and increasing reinvestment in the business, average net margins with a negative growth trend, and a decent current ratio. We also note that the company benefits from generally positive cash flows and healthy leverage. However, the firm suffers from slimmer gross margins than its peers and declining EPS growth.
Intel does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of $1.74, the company has a forward P/E ratio of 18.1. In comparison, the average P/E ratio for the Technology sector is 27.16. On the other hand, the market is undervaluing Intel in terms of its equity because its P/B ratio is 1.44. In comparison, the sector average is 6.23. In conclusion, Intel's impressive cash flow trend, decent P/B ratio, and reasonable use of leverage demonstrate that the company may still be fairly valued — despite its elevated earnings multiple.
There's an Analyst Consensus of Little Upside Potential for Intel:
The 35 analysts following Intel have set target prices ranging from $17.0 to $45.0 per share, for an average of $31.65 with a hold rating. As of April 2023, the company is trading -0.2% away from its average target price, indicating that there is an analyst consensus of little upside potential.
Intel has a very low short interest because 1.5% of the company's shares are sold short. Institutions own 63.4% of the company's shares, and the insider ownership rate stands at 0.06%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 9% stake in the company is worth $12,626,373,636.
