In today's rapidly changing and fiercely competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies. In this article, we will conduct a comprehensive industry comparison, evaluating Intel (NASDAQ:INTC) against its key competitors in the Semiconductors & Semiconductor Equipment industry. By examining key financial metrics, market position, and growth prospects, we aim to provide 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 | 782.67 | 2.11 | 3.87 | 3.98% | $7.85 | $5.22 | 2.78% |
| NVIDIA Corp | 46.10 | 38.07 | 24.46 | 29.14% | $38.75 | $41.85 | 62.49% |
| Broadcom Inc | 73.73 | 20.51 | 26.72 | 11.02% | $9.86 | $12.25 | 28.18% |
| Micron Technology Inc | 34.48 | 6.94 | 9.68 | 9.28% | $8.35 | $7.65 | 56.65% |
| Advanced Micro Devices Inc | 121.38 | 6.21 | 11.82 | 2.06% | $2.11 | $4.78 | 35.59% |
| Qualcomm Inc | 31.82 | 8.05 | 3.98 | -12.88% | $3.51 | $6.24 | 10.03% |
| Texas Instruments Inc | 34.90 | 10.47 | 10.16 | 8.21% | $2.24 | $2.72 | 14.24% |
| Analog Devices Inc | 65.84 | 4.35 | 13.53 | 2.32% | $1.47 | $1.94 | 25.91% |
| ARM Holdings PLC | 135.62 | 15.15 | 25.56 | 3.3% | $0.22 | $1.11 | 34.48% |
| Marvell Technology Inc | 28.33 | 4.85 | 8.97 | 13.84% | $2.58 | $1.07 | 36.83% |
| NXP Semiconductors NV | 29.31 | 5.94 | 5.02 | 6.43% | $1.11 | $1.79 | -2.37% |
| Monolithic Power Systems Inc | 26.51 | 13.87 | 18.69 | 5.12% | $0.21 | $0.41 | 18.88% |
| ASE Technology Holding Co Ltd | 39.56 | 4.22 | 2.15 | 3.56% | $32.4 | $28.88 | 5.29% |
| First Solar Inc | 18.71 | 2.90 | 5.19 | 5.19% | $0.61 | $0.61 | 79.67% |
| Credo Technology Group Holding Ltd | 130.15 | 21.20 | 36.22 | 7.99% | $0.09 | $0.18 | 272.08% |
| ON Semiconductor Corp | 82.64 | 3.07 | 4.08 | 3.22% | $0.44 | $0.59 | -11.98% |
| STMicroelectronics NV | 48.33 | 1.39 | 2.21 | 1.33% | $0.31 | $1.06 | -1.97% |
| United Microelectronics Corp | 17.39 | 2.05 | 3.08 | 4.29% | $30.07 | $17.62 | -2.25% |
| Tower Semiconductor Ltd | 75.05 | 5.13 | 9.72 | 1.9% | $0.13 | $0.09 | 6.79% |
| Lattice Semiconductor Corp | 416.10 | 16.11 | 23.23 | 0.4% | $0.01 | $0.09 | 4.92% |
| Rambus Inc | 51.42 | 9.02 | 17.31 | 3.84% | $0.08 | $0.14 | 22.68% |
| Average | 75.37 | 9.97 | 13.09 | 5.48% | $6.73 | $6.55 | 34.81% |
Upon closer analysis of Intel, the following trends become apparent:
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The current Price to Earnings ratio of 782.67 is 10.38x higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.
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Considering a Price to Book ratio of 2.11, which is well below the industry average by 0.21x, the stock may be undervalued based on its book value compared to its peers.
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With a relatively low Price to Sales ratio of 3.87, which is 0.3x the industry average, the stock might be considered undervalued based on sales performance.
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The Return on Equity (ROE) of 3.98% is 1.5% below the industry average, suggesting 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 1.17x above the industry average, highlighting stronger profitability and robust cash flow generation.
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The company has lower gross profit of $5.22 Billion, which indicates 0.8x below the industry average. This potentially indicates lower revenue after accounting for production costs.
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The company's revenue growth of 2.78% is significantly lower compared to the industry average of 34.81%. This indicates a potential fall in the company's sales performance.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio gauges the extent to which a company has financed its operations through debt relative to equity.
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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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 ratio is low, suggesting a possible undervaluation relative to industry competitors. The PS ratio is also low, signaling a potential undervaluation based on sales. In terms of ROE, Intel shows lower profitability compared to peers. The high EBITDA suggests strong operational earnings, while low gross profit and revenue growth indicate potential challenges in generating profits and expanding revenue.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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