Competitor Analysis: Evaluating Intel And Competitors In Semiconductors & Semiconductor Equipment Industry

In today's fast-paced and highly competitive business world, it is crucial for investors and industry followers to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating Intel INTC in relation to its major competitors in the Semiconductors & Semiconductor Equipment industry. By closely examining key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and highlight 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 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.

Company P/E P/B P/S ROE EBITDA (in billions) Gross Profit (in billions) Revenue Growth
Intel Corp 31.86 1.24 2.37 -0.36% $1.83 $5.22 -17.41%
NVIDIA Corp 74.42 51.65 36.35 32.23% $14.56 $16.79 265.28%
Broadcom Inc 47.50 8.43 14.35 2.81% $4.61 $7.38 34.17%
Advanced Micro Devices Inc 218.26 4.33 10.78 0.22% $0.9 $2.56 -11.27%
Qualcomm Inc 23.95 8.19 5.56 9.79% $3.08 $5.28 1.23%
Texas Instruments Inc 27.87 9.59 9.76 6.52% $1.77 $2.1 -16.4%
ARM Holdings PLC 1230.06 20.89 35.59 1.78% $0.18 $0.79 13.81%
Analog Devices Inc 35.65 2.78 8.68 1.3% $1.12 $1.47 -22.68%
Microchip Technology Inc 21.35 6.97 5.89 5.97% $0.75 $1.12 -18.6%
STMicroelectronics NV 10.27 2.11 2.29 3.04% $0.55 $1.44 -18.41%
Monolithic Power Systems Inc 84.29 16.28 18.90 4.85% $0.1 $0.25 -1.3%
ON Semiconductor Corp 14.36 3.73 3.83 5.7% $0.71 $0.85 -4.95%
GLOBALFOUNDRIES Inc 26.92 2.46 3.71 2.53% $0.72 $0.53 -11.76%
ASE Technology Holding Co Ltd 21.35 2.54 1.28 1.94% $23.55 $20.87 1.46%
First Solar Inc 20.08 2.97 5.77 5.38% $0.36 $0.35 15.58%
United Microelectronics Corp 11 1.93 2.95 3.43% $23.32 $17.81 -18.98%
Skyworks Solutions Inc 17.42 2.33 3.28 2.91% $0.31 $0.42 -9.29%
Lattice Semiconductor Corp 45.46 14.29 14.26 2.15% $0.03 $0.1 -23.6%
Universal Display Corp 37.13 5.46 13.31 4.36% $0.08 $0.12 -6.34%
MACOM Technology Solutions Holdings Inc 115.56 7.09 11.65 1.27% $0.03 $0.09 -12.75%
Rambus Inc 17.10 6.14 13.33 3.24% $0.03 $0.09 -3.56%
Average 105.0 9.01 11.08 5.07% $3.84 $4.02 7.58%

Through a detailed examination of Intel, we can deduce the following trends:

  • A Price to Earnings ratio of 31.86 significantly below the industry average by 0.3x suggests undervaluation. This can make the stock appealing for those seeking growth.

  • The current Price to Book ratio of 1.24, which is 0.14x the industry average, is substantially lower than the industry average, indicating potential undervaluation.

  • Based on its sales performance, the stock could be deemed undervalued with a Price to Sales ratio of 2.37, which is 0.21x the industry average.

  • With a Return on Equity (ROE) of -0.36% that is 5.43% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.

  • With lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $1.83 Billion, which is 0.48x below the industry average, the company may face lower profitability or financial challenges.

  • Compared to its industry, the company has higher gross profit of $5.22 Billion, which indicates 1.3x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • The company is witnessing a substantial decline in revenue growth, with a rate of -17.41% compared to the industry average of 7.58%, which indicates a challenging sales environment.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is a key indicator of a company's financial health and its reliance on debt financing.

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 evaluating Intel alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:

  • When comparing the debt-to-equity ratio, Intel is in a stronger financial position compared to its top 4 peers.

  • 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 0.49.

Key Takeaways

For Intel, the PE, PB, and PS ratios are all low compared to industry peers, indicating potential undervaluation. However, the low ROE, EBITDA, and revenue growth, coupled with high gross profit, suggest a need for further investigation into operational efficiency and growth prospects within the Semiconductors & Semiconductor Equipment industry.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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