In today's fast-paced and highly competitive business world, it is crucial for investors and industry followers to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating Intel (NASDAQ:INTC) in relation to its major competitors in the Semiconductors & Semiconductor Equipment industry. By closely examining key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and highlight company's performance in the industry.
Intel Background
Intel is a leading digital chipmaker, focused on the design and manufacturing of microprocessors for the global personal computer and data center markets. Intel pioneered the x86 architecture for microprocessors and led the semiconductor industry down the path of Moore's law for advances in semiconductor manufacturing. Intel remains the market share leader in central processing units in both the PC and server end markets. Intel is seeking to reinvigorate its chip manufacturing business, Intel Foundry, while developing leading-edge products within its Intel Products business segment.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Intel Corp | 759.17 | 2.04 | 3.75 | 3.98% | $7.85 | $5.22 | 2.78% |
| NVIDIA Corp | 45.76 | 37.79 | 24.28 | 29.14% | $38.75 | $41.85 | 62.49% |
| Taiwan Semiconductor Manufacturing Co Ltd | 33.61 | 10.57 | 14.55 | 9.44% | $691.11 | $588.54 | 30.31% |
| Broadcom Inc | 72.32 | 20.12 | 26.20 | 11.02% | $9.86 | $12.25 | 28.18% |
| Micron Technology Inc | 32.80 | 6.60 | 9.21 | 9.28% | $8.35 | $7.65 | 56.65% |
| Advanced Micro Devices Inc | 106.37 | 5.44 | 10.36 | 2.06% | $2.11 | $4.78 | 35.59% |
| Qualcomm Inc | 35.49 | 8.98 | 4.44 | -12.88% | $3.51 | $6.24 | 10.03% |
| Texas Instruments Inc | 34.66 | 10.40 | 10.09 | 8.21% | $2.24 | $2.72 | 14.24% |
| Analog Devices Inc | 65.99 | 4.36 | 13.56 | 2.32% | $1.47 | $1.94 | 25.91% |
| ARM Holdings PLC | 143.32 | 16.01 | 27.01 | 3.3% | $0.22 | $1.11 | 34.48% |
| Marvell Technology Inc | 29.30 | 5.02 | 9.28 | 13.84% | $2.58 | $1.07 | 36.83% |
| NXP Semiconductors NV | 29.81 | 6.04 | 5.10 | 6.43% | $1.11 | $1.79 | -2.37% |
| Monolithic Power Systems Inc | 24.60 | 12.88 | 17.35 | 5.12% | $0.21 | $0.41 | 18.88% |
| ASE Technology Holding Co Ltd | 35.83 | 3.82 | 1.95 | 3.56% | $32.4 | $28.88 | 5.29% |
| Credo Technology Group Holding Ltd | 129.67 | 21.13 | 36.09 | 7.99% | $0.09 | $0.18 | 272.08% |
| ON Semiconductor Corp | 85.15 | 3.16 | 4.20 | 3.22% | $0.44 | $0.59 | -11.98% |
| STMicroelectronics NV | 49.72 | 1.43 | 2.27 | 1.33% | $0.31 | $1.06 | -1.97% |
| First Solar Inc | 18.32 | 2.84 | 5.08 | 5.19% | $0.61 | $0.61 | 79.67% |
| United Microelectronics Corp | 16.37 | 1.93 | 2.90 | 4.29% | $30.07 | $17.62 | -2.25% |
| Tower Semiconductor Ltd | 69.38 | 4.74 | 8.99 | 1.9% | $0.13 | $0.09 | 6.79% |
| Lattice Semiconductor Corp | 424 | 16.42 | 23.68 | 0.4% | $0.01 | $0.09 | 4.92% |
| Rambus Inc | 44.47 | 7.80 | 14.97 | 3.84% | $0.08 | $0.14 | 22.68% |
| Average | 72.71 | 9.88 | 12.93 | 5.67% | $39.32 | $34.27 | 34.59% |
Upon analyzing Intel, the following trends can be observed:
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The current Price to Earnings ratio of 759.17 is 10.44x higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.
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The current Price to Book ratio of 2.04, which is 0.21x the industry average, is substantially lower than the industry average, indicating potential undervaluation.
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Based on its sales performance, the stock could be deemed undervalued with a Price to Sales ratio of 3.75, which is 0.29x the industry average.
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The company has a lower Return on Equity (ROE) of 3.98%, which is 1.69% below the industry average. This indicates potential inefficiency in utilizing equity to generate profits, which could be attributed to various factors.
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Compared to its industry, the company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $7.85 Billion, which is 0.2x below the industry average, potentially indicating lower profitability or financial challenges.
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Compared to its industry, the company has lower gross profit of $5.22 Billion, which indicates 0.15x below the industry average, potentially indicating lower revenue after accounting for production costs.
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With a revenue growth of 2.78%, which is much lower than the industry average of 34.59%, the company is experiencing a notable slowdown in sales expansion.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio provides insights into the proportion of debt a company has in relation to its equity and asset value.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When comparing Intel with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:
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Intel exhibits a stronger financial position compared to its top 4 peers in the sector, as indicated by its lower debt-to-equity ratio of 0.44.
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This suggests that the company has a more favorable balance between debt and equity, which can be seen as a positive aspect for investors.
Key Takeaways
For Intel in the Semiconductors & Semiconductor Equipment industry, the PE ratio is high compared to peers, indicating potential overvaluation. The PB and PS ratios are low, suggesting undervaluation relative to industry competitors. In terms of ROE, EBITDA, gross profit, and revenue growth, Intel lags behind its peers, signaling weaker financial performance and growth prospects within the sector.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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