Amidst today's fast-paced and highly competitive business environment, it is crucial for investors and industry enthusiasts to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating Intel (NASDAQ:INTC) in comparison to its major competitors within the Semiconductors & Semiconductor Equipment industry. By analyzing critical 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 | 809.33 | 2.18 | 4 | 3.98% | $7.85 | $5.22 | 2.78% |
| NVIDIA Corp | 44.08 | 36.40 | 23.39 | 29.14% | $38.75 | $41.85 | 62.49% |
| Broadcom Inc | 69.73 | 19.40 | 25.27 | 11.02% | $9.86 | $12.25 | 28.18% |
| Micron Technology Inc | 34.70 | 6.99 | 9.74 | 9.28% | $8.35 | $7.65 | 56.65% |
| Advanced Micro Devices Inc | 121.42 | 6.21 | 11.82 | 2.06% | $2.11 | $4.78 | 35.59% |
| Texas Instruments Inc | 34.53 | 10.36 | 10.05 | 8.21% | $2.24 | $2.72 | 14.24% |
| Qualcomm Inc | 30.75 | 7.78 | 3.84 | -12.88% | $3.51 | $6.24 | 10.03% |
| Analog Devices Inc | 64.84 | 4.28 | 13.33 | 2.32% | $1.47 | $1.94 | 25.91% |
| ARM Holdings PLC | 137.40 | 15.35 | 25.89 | 3.3% | $0.22 | $1.11 | 34.48% |
| Marvell Technology Inc | 28.10 | 4.81 | 8.90 | 13.84% | $2.58 | $1.07 | 36.83% |
| NXP Semiconductors NV | 28.52 | 5.78 | 4.88 | 6.43% | $1.11 | $1.79 | -2.37% |
| Monolithic Power Systems Inc | 26.54 | 13.89 | 18.72 | 5.12% | $0.21 | $0.41 | 18.88% |
| ASE Technology Holding Co Ltd | 38.51 | 4.11 | 2.09 | 3.56% | $32.4 | $28.88 | 5.29% |
| United Microelectronics Corp | 20.14 | 2.37 | 3.56 | 4.29% | $30.07 | $17.62 | -2.25% |
| Credo Technology Group Holding Ltd | 132.09 | 21.52 | 36.76 | 7.99% | $0.09 | $0.18 | 272.08% |
| First Solar Inc | 18.58 | 2.88 | 5.15 | 5.19% | $0.61 | $0.61 | 79.67% |
| ON Semiconductor Corp | 82.27 | 3.06 | 4.06 | 3.22% | $0.44 | $0.59 | -11.98% |
| STMicroelectronics NV | 46.76 | 1.35 | 2.14 | 1.33% | $0.31 | $1.06 | -1.97% |
| Tower Semiconductor Ltd | 74.57 | 5.10 | 9.66 | 1.9% | $0.13 | $0.09 | 6.79% |
| Rambus Inc | 52.42 | 9.20 | 17.65 | 3.84% | $0.08 | $0.14 | 22.68% |
| Lattice Semiconductor Corp | 416.10 | 16.11 | 23.23 | 0.4% | $0.01 | $0.09 | 4.92% |
| Average | 75.1 | 9.85 | 13.01 | 5.48% | $6.73 | $6.55 | 34.81% |
Through a thorough examination of Intel, we can discern the following trends:
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Notably, the current Price to Earnings ratio for this stock, 809.33, is 10.78x above the industry norm, reflecting a higher valuation relative to the industry.
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The current Price to Book ratio of 2.18, which is 0.22x the industry average, is substantially lower than the industry average, indicating potential undervaluation.
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The Price to Sales ratio is 4.0, 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 1.5% 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 exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $7.85 Billion, which is 1.17x above the industry average, implying stronger profitability and robust cash flow generation.
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The gross profit of $5.22 Billion is 0.8x below that of its industry, suggesting potential lower revenue after accounting for production costs.
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The company's revenue growth of 2.78% is significantly below the industry average of 34.81%. This suggests a potential struggle in generating increased sales volume.
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.
By analyzing Intel in relation to its top 4 peers based on the Debt-to-Equity ratio, the following insights can be derived:
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When comparing the debt-to-equity ratio, Intel is in a stronger financial position compared to its top 4 peers.
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The company has a lower level of debt relative to its equity, indicating a more favorable balance between the two with a lower debt-to-equity ratio of 0.44.
Key Takeaways
The high PE ratio of Intel suggests that investors are willing to pay a premium for its earnings compared to its peers in the Semiconductors & Semiconductor Equipment industry. On the other hand, Intel's low PB and PS ratios indicate that the market values the company lower based on its book value and sales. In terms of ROE, Intel lags behind its industry peers, reflecting lower profitability from shareholder equity. However, Intel's high EBITDA implies strong operational earnings, despite its low gross profit and revenue growth compared to industry standards.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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