Intel logged a 3.3% change during today's afternoon session, and is now trading at a price of $21.84 per share.
Intel returned losses of -36.3% last year, with its stock price reaching a high of $51.28 and a low of $18.51. Over the same period, the stock underperformed the S&P 500 index by -67.8%. AThe company's 50-day average price was $23.92. Intel Corporation designs, develops, manufactures, markets, and sells computing and related products and services worldwide. Based in Santa Clara, CA, the Large-Cap Technology company has 124,800 full time employees. Intel has returned a 2.4% dividend yield over the last 12 months, but this may not be sustainable seen that the company has a choppy cash flow record.
The Company Has a Highly Leveraged Balance Sheet and a Declining EPS Growth Trend:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $70,848 | $71,965 | $77,867 | $79,024 | $63,054 | $54,228 |
| Gross Margins | 62.0% | 59.0% | 56.0% | 55.0% | n/a | 40.0% |
| Net Margins | 30% | 28% | 27% | 25% | 13% | 3% |
| Net Income (M) | $21,053 | $21,048 | $20,899 | $19,868 | $8,017 | $1,689 |
| Net Interest Expense (M) | $126 | $484 | -$504 | -$482 | n/a | $629 |
| Depreciation & Amort. (M) | $7,520 | $9,204 | $10,482 | $9,953 | $11,128 | $7,847 |
| Diluted Shares (M) | 4,701 | 4,473 | 4,232 | 4,090 | 4,123 | 4,212 |
| Earnings Per Share | $4.48 | $4.71 | $4.94 | $4.86 | $1.94 | $0.4 |
| EPS Growth | n/a | 5.13% | 4.88% | -1.62% | -60.08% | -79.38% |
| Avg. Price | $42.59 | $45.74 | $49.98 | $52.18 | $43.95 | $21.84 |
| P/E Ratio | 9.32 | 9.59 | 10.04 | 10.67 | 22.65 | 54.6 |
| Free Cash Flow (M) | $14,251 | $16,932 | $21,605 | $10,723 | -$9,411 | -$14,279 |
| CAPEX (M) | $15,181 | $16,213 | $14,259 | $18,733 | $24,844 | $25,750 |
| EV / EBITDA | 7.23 | 7.5 | 7.22 | 8.5 | 15.62 | 16.98 |
| Total Debt (M) | $27,120 | $32,696 | $38,905 | $42,692 | $42,474 | $51,554 |
| Net Debt / EBITDA | 0.78 | 0.91 | 0.97 | 1.29 | 2.33 | 5.6 |
| Current Ratio | 1.73 | 1.4 | 1.91 | 2.13 | 1.57 | 1.54 |
Intel has declining EPS growth, positive cash flows, and a highly leveraged balance sheet. On the other hand, the company has a decent current ratio of 1.54 working in its favor. Furthermore, Intel has declining revenues and increasing reinvestment in the business and similar gross margins to its peers.
an Exceptionally Low P/B Ratio but Priced at a Premium:
Intel has a trailing twelve month P/E ratio of 99.7, compared to an average of 31.58 for the Technology sector. Based on its EPS guidance of $1.13, the company has a forward P/E ratio of 21.2. The -17.9% compound average growth rate of Intel's historical and projected earnings per share yields a PEG ratio of -5.58. This indicates that its shares are overvalued.In contrast, the market is likely undervaluing Intel in terms of its equity because its P/B ratio is 0.81 while the sector average is 4.11. The company's shares are currently trading 45.4% below their Graham number.
Intel Has an Average Rating of Hold:
The 31 analysts following Intel have set target prices ranging from $17.0 to $58.53 per share, for an average of $25.46 with a hold rating. The company is trading -14.2% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Intel has an average amount of shares sold short because 2.5% of the company's shares are sold short. Institutions own 67.7% 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 $8,593,760,420.
