In the fast-paced and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Intel (NASDAQ:INTC) in comparison to its major competitors within the Semiconductors & Semiconductor Equipment industry. By analyzing crucial financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of 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 | 812 | 2.18 | 4.02 | 3.98% | $7.85 | $5.22 | 2.78% |
| NVIDIA Corp | 45.33 | 37.44 | 24.06 | 29.14% | $38.75 | $41.85 | 62.49% |
| Taiwan Semiconductor Manufacturing Co Ltd | 34.15 | 10.74 | 14.78 | 9.44% | $691.11 | $588.54 | 30.31% |
| Broadcom Inc | 71.26 | 19.82 | 25.82 | 11.02% | $9.86 | $12.25 | 28.18% |
| Micron Technology Inc | 31.69 | 6.38 | 8.89 | 9.28% | $8.35 | $7.65 | 56.65% |
| Advanced Micro Devices Inc | 117.07 | 5.99 | 11.40 | 2.06% | $2.11 | $4.78 | 35.59% |
| Qualcomm Inc | 32.84 | 8.31 | 4.11 | -12.88% | $3.51 | $6.24 | 10.03% |
| Texas Instruments Inc | 35.24 | 10.57 | 10.25 | 8.21% | $2.24 | $2.72 | 14.24% |
| Analog Devices Inc | 65.35 | 4.31 | 13.43 | 2.32% | $1.47 | $1.94 | 25.91% |
| ARM Holdings PLC | 134.60 | 15.04 | 25.37 | 3.3% | $0.22 | $1.11 | 34.48% |
| Marvell Technology Inc | 28.60 | 4.90 | 9.05 | 13.84% | $2.58 | $1.07 | 36.83% |
| NXP Semiconductors NV | 29.77 | 6.03 | 5.09 | 6.43% | $1.11 | $1.79 | -2.37% |
| Monolithic Power Systems Inc | 25.23 | 13.21 | 17.80 | 5.12% | $0.21 | $0.41 | 18.88% |
| ASE Technology Holding Co Ltd | 38.55 | 4.11 | 2.09 | 3.56% | $32.4 | $28.88 | 5.29% |
| Credo Technology Group Holding Ltd | 135.21 | 22.03 | 37.63 | 7.99% | $0.09 | $0.18 | 272.08% |
| First Solar Inc | 18.15 | 2.81 | 5.03 | 5.19% | $0.61 | $0.61 | 79.67% |
| ON Semiconductor Corp | 82.99 | 3.08 | 4.09 | 3.22% | $0.44 | $0.59 | -11.98% |
| STMicroelectronics NV | 48.07 | 1.39 | 2.20 | 1.33% | $0.31 | $1.06 | -1.97% |
| United Microelectronics Corp | 16.46 | 1.94 | 2.91 | 4.29% | $30.07 | $17.62 | -2.25% |
| Tower Semiconductor Ltd | 71.22 | 4.87 | 9.23 | 1.9% | $0.13 | $0.09 | 6.79% |
| Lattice Semiconductor Corp | 426.20 | 16.51 | 23.80 | 0.4% | $0.01 | $0.09 | 4.92% |
| Rambus Inc | 47.91 | 8.41 | 16.13 | 3.84% | $0.08 | $0.14 | 22.68% |
| Average | 73.14 | 9.9 | 13.01 | 5.67% | $39.32 | $34.27 | 34.59% |
After examining Intel, the following trends can be inferred:
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The Price to Earnings ratio of 812.0 for this company is 11.1x above the industry average, indicating a premium valuation associated with the stock.
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With a Price to Book ratio of 2.18, significantly falling below the industry average by 0.22x, it suggests undervaluation and the possibility of untapped growth prospects.
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The Price to Sales ratio is 4.02, which is 0.31x the industry average. This suggests a possible undervaluation based on sales performance.
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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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The company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $7.85 Billion, which is 0.2x below the industry average. This potentially indicates lower profitability or financial challenges.
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The company has lower gross profit of $5.22 Billion, which indicates 0.15x below the industry average. This potentially indicates 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 indicates the proportion of debt and equity used by a company to finance its assets and operations.
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.
In terms of the Debt-to-Equity ratio, Intel can be assessed by comparing it to its top 4 peers, resulting in the following observations:
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In terms of the debt-to-equity ratio, Intel has a lower level of debt compared to its top 4 peers, indicating a stronger financial position.
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This implies that the company relies less on debt financing and has a more favorable balance between debt and equity with a lower debt-to-equity ratio of 0.44.
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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