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 | 621.67 | 1.67 | 3.07 | 3.98% | $7.85 | $5.22 | 2.78% |
| NVIDIA Corp | 46.42 | 38.34 | 24.64 | 29.14% | $38.75 | $41.85 | 62.49% |
| Broadcom Inc | 73.34 | 20.40 | 26.58 | 11.02% | $9.86 | $12.25 | 28.18% |
| Taiwan Semiconductor Manufacturing Co Ltd | 31.04 | 9.76 | 13.44 | 9.44% | $691.11 | $588.54 | 30.31% |
| Advanced Micro Devices Inc | 112.74 | 5.77 | 10.98 | 2.06% | $2.11 | $4.78 | 35.59% |
| Micron Technology Inc | 27.82 | 5.60 | 7.81 | 9.28% | $8.35 | $7.65 | 56.65% |
| Qualcomm Inc | 34.66 | 8.77 | 4.33 | -12.88% | $3.51 | $6.24 | 10.03% |
| Texas Instruments Inc | 31.95 | 9.59 | 9.30 | 8.21% | $2.24 | $2.72 | 14.24% |
| Analog Devices Inc | 60.27 | 3.98 | 12.39 | 2.32% | $1.47 | $1.94 | 25.91% |
| ARM Holdings PLC | 142.13 | 15.88 | 26.79 | 3.3% | $0.22 | $1.11 | 34.48% |
| Marvell Technology Inc | 30.55 | 5.23 | 9.67 | 13.84% | $2.58 | $1.07 | 36.83% |
| NXP Semiconductors NV | 27.19 | 5.51 | 4.65 | 6.43% | $1.11 | $1.79 | -2.37% |
| Monolithic Power Systems Inc | 23.70 | 12.41 | 16.72 | 5.12% | $0.21 | $0.41 | 18.88% |
| ASE Technology Holding Co Ltd | 32.48 | 3.46 | 1.76 | 3.56% | $32.4 | $28.88 | 5.29% |
| First Solar Inc | 20.28 | 3.15 | 5.63 | 5.19% | $0.61 | $0.61 | 79.67% |
| Credo Technology Group Holding Ltd | 124.93 | 20.35 | 34.77 | 7.99% | $0.09 | $0.18 | 272.08% |
| STMicroelectronics NV | 44.93 | 1.30 | 2.06 | 1.33% | $0.31 | $1.06 | -1.97% |
| ON Semiconductor Corp | 74.30 | 2.76 | 3.66 | 3.22% | $0.44 | $0.59 | -11.98% |
| United Microelectronics Corp | 14.79 | 1.74 | 2.62 | 4.29% | $30.07 | $17.62 | -2.25% |
| Tower Semiconductor Ltd | 69.75 | 4.75 | 9.03 | 1.9% | $0.13 | $0.09 | 6.79% |
| Lattice Semiconductor Corp | 372.90 | 14.44 | 20.82 | 0.4% | $0.01 | $0.09 | 4.92% |
| Rambus Inc | 45.09 | 7.91 | 15.18 | 3.84% | $0.08 | $0.14 | 22.68% |
| Average | 68.63 | 9.58 | 12.52 | 5.67% | $39.32 | $34.27 | 34.59% |
After examining Intel, the following trends can be inferred:
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At 621.67, the stock’s Price to Earnings ratio significantly exceeds the industry average by 9.06x, suggesting a premium valuation relative to industry peers.
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With a Price to Book ratio of 1.67, significantly falling below the industry average by 0.17x, it suggests undervaluation and the possibility of untapped growth prospects.
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The Price to Sales ratio is 3.07, which is 0.25x 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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With lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $7.85 Billion, which is 0.2x below the industry average, the company may face lower profitability or financial challenges.
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With lower gross profit of $5.22 Billion, which indicates 0.15x below the industry average, the company may experience 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.
When comparing Intel with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:
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When considering the debt-to-equity ratio, Intel exhibits a stronger financial position compared to its top 4 peers.
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This indicates that the company has a favorable balance between debt and equity, with a lower debt-to-equity ratio of 0.44, which can be perceived as a positive aspect by investors.
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, reflecting 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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