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Intel Corp INTC

Morningstar Rating
$34.20 −0.84 (2.40%)
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Company Report

Intel Is Progressing a Little Bit More on Its Road to Recovery; $40 Fair Value Estimate

We expect Intel should remain the market share leader in central processing units, or CPUs, in PCs and servers for years to come. However, Intel’s best days are likely behind it, as it is at a chip manufacturing disadvantage against Taiwan Semiconductor, or TSMC, and its processor partners, such as AMD, Nvidia, and Apple. We think Intel’s aspirations to regain parity with TSMC is the right path forward but faces significant execution risk. Even if successful, Intel’s competitors will be stronger than when the firm was dominant a decade ago. In turn, we assign Intel a no-moat rating, a disappointing erosion from previous narrow- and wide-moat ratings.

Price vs Fair Value

INTC is trading at a 15% discount.
Price
$34.20
Fair Value
$93.00
Uncertainty
High
1-Star Price
$56.00
5-Star Price
$21.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Intel is one of the largest semiconductor companies in the world and holds the lion's share of the PC and server processor markets.

Bears

Intel encountered significant manufacturing delays in years past, and there is no guarantee that it can execute well in its aggressive aspirations to develop five process nodes in four years.

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News

Trading Information

Previous Close Price
$35.04
Day Range
$34.1835.13
52-Week Range
$26.8651.28
Bid/Ask
$34.09 / $34.10
Market Cap
$145.59 Bil
Volume/Avg
59.1 Mil / 46.8 Mil

Key Statistics

Price/Earnings (Normalized)
35.77
Price/Sales
2.89
Dividend Yield (Trailing)
1.43%
Dividend Yield (Forward)
1.43%
Total Yield
1.40%

Company Profile

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 was the prime proponent 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 has also been expanding into new adjacencies, such as communications infrastructure, automotive, and the Internet of Things. Further, Intel expects to leverage its chip manufacturing capabilities into an outsourced foundry model where it constructs chips for others.
Sector
Technology
Industry
Semiconductors
Stock Style Box
Large Value
Total Number of Employees
124,800

Competitors

Valuation

Metric
INTC
NVDA
AMD
Price/Earnings (Normalized)
35.7797.4455.34
Price/Book Value
1.4948.544.24
Price/Sales
2.8934.6610.51
Price/Cash Flow
11.1666.3850.53
Price/Earnings
INTC
NVDA
AMD

Financial Strength

Metric
INTC
NVDA
AMD
Quick Ratio
1.013.381.67
Current Ratio
1.544.172.51
Interest Coverage
0.35129.223.70
Quick Ratio
INTC
NVDA
AMD

Profitability

Metric
INTC
NVDA
AMD
Return on Assets (Normalized)
2.37%63.34%6.35%
Return on Equity (Normalized)
4.35%107.45%7.81%
Return on Invested Capital (Normalized)
2.66%76.56%7.28%
Return on Assets
INTC
NVDA
AMD
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Semiconductors Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NVDA
NVIDIA CorpZrrmdgpsZgx$1.9 Tril
TSM
Taiwan Semiconductor Manufacturing Co Ltd ADRGyjyjqcxWkg$644.2 Bil
AVGO
Broadcom IncMzccgzqdktPsm$558.3 Bil
AMD
Advanced Micro Devices IncYkfjhmmbgWpknpw$250.6 Bil
QCOM
Qualcomm IncQtkdvbtYmnqggk$180.2 Bil
TXN
Texas Instruments IncWqtmjfxfyCtgqm$148.9 Bil
MU
Micron Technology IncDrcfbtlnQkcc$123.9 Bil
ADI
Analog Devices IncCbxbhqzppJdrl$93.0 Bil
ARM
ARM Holdings PLC ADRVfqcqzwVzhf$89.6 Bil

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