In the dynamic and fiercely competitive business environment, conducting a thorough analysis of companies is crucial for investors and industry enthusiasts. In this article, we will perform an extensive industry comparison, evaluating Intel (NASDAQ:INTC) in relation to its major competitors in the Semiconductors & Semiconductor Equipment industry. By closely examining crucial financial metrics, market position, and growth prospects, we aim to offer valuable insights for investors and shed light on company's performance within 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 | 734.33 | 1.98 | 3.63 | 3.98% | $7.85 | $5.22 | 2.78% |
| NVIDIA Corp | 45.78 | 37.81 | 24.29 | 29.14% | $38.75 | $41.85 | 62.49% |
| Taiwan Semiconductor Manufacturing Co Ltd | 34.61 | 10.89 | 14.98 | 9.44% | $691.11 | $588.54 | 30.31% |
| Broadcom Inc | 73.84 | 20.54 | 26.75 | 11.02% | $9.86 | $12.25 | 28.18% |
| Micron Technology Inc | 32.88 | 6.62 | 9.23 | 9.28% | $8.35 | $7.65 | 56.65% |
| Advanced Micro Devices Inc | 108.74 | 5.56 | 10.59 | 2.06% | $2.11 | $4.78 | 35.59% |
| Qualcomm Inc | 33.79 | 8.55 | 4.22 | -12.88% | $3.51 | $6.24 | 10.03% |
| Texas Instruments Inc | 34.44 | 10.33 | 10.02 | 8.21% | $2.24 | $2.72 | 14.24% |
| Analog Devices Inc | 64.44 | 4.26 | 13.25 | 2.32% | $1.47 | $1.94 | 25.91% |
| ARM Holdings PLC | 142.49 | 15.92 | 26.85 | 3.3% | $0.22 | $1.11 | 34.48% |
| Marvell Technology Inc | 29.19 | 5 | 9.24 | 13.84% | $2.58 | $1.07 | 36.83% |
| NXP Semiconductors NV | 29.46 | 5.97 | 5.04 | 6.43% | $1.11 | $1.79 | -2.37% |
| Monolithic Power Systems Inc | 24.81 | 12.99 | 17.50 | 5.12% | $0.21 | $0.41 | 18.88% |
| ASE Technology Holding Co Ltd | 37.27 | 3.98 | 2.02 | 3.56% | $32.4 | $28.88 | 5.29% |
| Credo Technology Group Holding Ltd | 134.54 | 21.92 | 37.44 | 7.99% | $0.09 | $0.18 | 272.08% |
| First Solar Inc | 18.25 | 2.83 | 5.06 | 5.19% | $0.61 | $0.61 | 79.67% |
| STMicroelectronics NV | 48.88 | 1.41 | 2.24 | 1.33% | $0.31 | $1.06 | -1.97% |
| ON Semiconductor Corp | 80.48 | 2.99 | 3.97 | 3.22% | $0.44 | $0.59 | -11.98% |
| United Microelectronics Corp | 16.56 | 1.95 | 2.93 | 4.29% | $30.07 | $17.62 | -2.25% |
| Tower Semiconductor Ltd | 70.12 | 4.79 | 9.08 | 1.9% | $0.13 | $0.09 | 6.79% |
| Lattice Semiconductor Corp | 415.50 | 16.09 | 23.20 | 0.4% | $0.01 | $0.09 | 4.92% |
| Rambus Inc | 44.24 | 7.76 | 14.89 | 3.84% | $0.08 | $0.14 | 22.68% |
| Average | 72.4 | 9.91 | 12.99 | 5.67% | $39.32 | $34.27 | 34.59% |
When conducting a detailed analysis of Intel, the following trends become clear:
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Notably, the current Price to Earnings ratio for this stock, 734.33, is 10.14x above the industry norm, reflecting a higher valuation relative to the industry.
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The current Price to Book ratio of 1.98, which is 0.2x the industry average, is substantially lower than the industry average, indicating potential undervaluation.
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The Price to Sales ratio is 3.63, which is 0.28x the industry average. This suggests a possible undervaluation based on sales performance.
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With a Return on Equity (ROE) of 3.98% that is 1.69% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.
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The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $7.85 Billion is 0.2x below the industry average, suggesting potential 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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The company is witnessing a substantial decline in revenue growth, with a rate of 2.78% compared to the industry average of 34.59%, which indicates a challenging sales environment.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio is a key indicator of a company's financial health and its reliance on debt financing.
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 examining Intel in comparison to its top 4 peers with respect to the Debt-to-Equity ratio, the following information becomes apparent:
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Intel is in a relatively stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.44.
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This implies that the company relies less on debt financing and has a more favorable balance between debt and equity.
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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