Intel logged a 0.1% change during today's afternoon session, and is now trading at a price of $43.7 per share.
Intel returned gains of 49.0% last year, with its stock price reaching a high of $44.93 and a low of $24.73. Over the same period, the stock outperformed the S&P 500 index by 35.0%. More recently, the company's 50-day average price was $36.93. Intel Corporation designs, develops, manufactures, markets, and sells computing and related products worldwide. Based in Santa Clara, CA, the large-cap Technology company has 120,300 full time employees. Intel has offered a 2.2% dividend yield over the last 12 months.
The Business Is Unprofitable and Its Balance Sheet Is Highly Leveraged:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $70,848 | $71,965 | $77,867 | $79,024 | $63,054 | $54,044 |
| Gross Margins | 62.0% | 59.0% | 56.0% | 55.0% | 43.0% | 38.0% |
| Operating Margins | 33.0% | 33.0% | 32.0% | 27.0% | 12.0% | -5.0% |
| Net Margins | 30.0% | 28.0% | 27.0% | 25.0% | 13.0% | 0.0% |
| Net Income (MM) | $21,053 | $21,048 | $20,899 | $19,868 | $8,014 | -$15 |
| Net Interest Expense (MM) | $126 | $484 | -$504 | -$482 | $1,166 | $653 |
| Depreciation & Amort. (MM) | $7,520 | $9,204 | $10,482 | $9,953 | $11,128 | $9,333 |
| Earnings Per Share | $4.48 | $4.71 | $4.94 | $4.86 | $1.94 | -$0.24 |
| Diluted Shares (MM) | 4,701 | 4,473 | 4,232 | 4,090 | 4,123 | 4,266 |
| Free Cash Flow (MM) | $14,251 | $16,932 | $21,605 | $10,723 | -$9,411 | -$16,543 |
| Capital Expenditures (MM) | $15,181 | $16,213 | $14,259 | $18,733 | $24,844 | $26,299 |
| Net Current Assets (MM) | -$2,328 | -$5,193 | $8,358 | $17,230 | $702 | -$74 |
| Long Term Debt (MM) | $25,098 | $25,308 | $33,897 | $33,510 | $37,684 | $46,335 |
| Net Debt / EBITDA | 0.84 | 0.75 | 0.86 | 1.05 | 1.64 | 6.38 |
Intel's financial statements include several red flags such as slimmer gross margins than its peers, declining EPS growth, and a deteriorating pattern of cash flows. Additionally, the firm has a highly leveraged balance sheet. Intel has declining revenues and increasing reinvestment in the business and average net margins with a negative growth trend.
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 $1.9, the company has a forward P/E ratio of 19.4. 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 1.81. In comparison, the sector average is 6.23.
Intel Has an Analyst Consensus that Shares Are Overpriced:
The 35 analysts following Intel have set target prices ranging from $17.0 to $56.0 per share, for an average of $36.81 with a hold rating. As of April 2023, the company is trading 0.3% away from its average target price, indicating that there is an analyst belief that shares are overpriced.
Intel has a very low short interest because 1.4% of the company's shares are sold short. Institutions own 64.7% 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 Vanguard Group Inc, whose 9% stake in the company is worth $16,656,401,797.
