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华尔街日报Comparing Intel With Industry Competitors In Semiconductors & Semiconductor Equipment Industry
In today's rapidly changing and highly competitive business world, it is imperative for investors and industry observers to carefully assess companies before making investment choices. In this article, we will undertake a comprehensive industry comparison, evaluating Intel (NASDAQ:INTC) vis-à-vis its key competitors in the Semiconductors & Semiconductor Equipment industry. Through a detailed analysis of important financial indicators, market standing, and growth potential, our goal 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 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 | 606.17 | 1.63 | 3 | 3.98% | $7.85 | $5.22 | 2.78% |
| NVIDIA Corp | 45.47 | 37.55 | 24.13 | 29.14% | $38.75 | $41.85 | 62.49% |
| Broadcom Inc | 71.58 | 19.91 | 25.94 | 11.02% | $9.86 | $12.25 | 28.18% |
| Taiwan Semiconductor Manufacturing Co Ltd | 30.52 | 9.60 | 13.21 | 9.44% | $691.11 | $588.54 | 30.31% |
| Advanced Micro Devices Inc | 112.54 | 5.76 | 10.96 | 2.06% | $2.11 | $4.78 | 35.59% |
| Micron Technology Inc | 26.29 | 5.29 | 7.38 | 9.28% | $8.35 | $7.65 | 56.65% |
| Qualcomm Inc | 34.77 | 8.80 | 4.35 | -12.88% | $3.51 | $6.24 | 10.03% |
| Texas Instruments Inc | 32.57 | 9.77 | 9.48 | 8.21% | $2.24 | $2.72 | 14.24% |
| Analog Devices Inc | 60.49 | 3.99 | 12.43 | 2.32% | $1.47 | $1.94 | 25.91% |
| ARM Holdings PLC | 145.24 | 16.23 | 27.37 | 3.3% | $0.22 | $1.11 | 34.48% |
| Marvell Technology Inc | 29.86 | 5.12 | 9.45 | 13.84% | $2.58 | $1.07 | 36.83% |
| NXP Semiconductors NV | 28.30 | 5.74 | 4.84 | 6.43% | $1.11 | $1.79 | -2.37% |
| Monolithic Power Systems Inc | 24.25 | 12.69 | 17.10 | 5.12% | $0.21 | $0.41 | 18.88% |
| ASE Technology Holding Co Ltd | 31.23 | 3.33 | 1.70 | 3.56% | $32.4 | $28.88 | 5.29% |
| First Solar Inc | 21.84 | 3.39 | 6.06 | 5.19% | $0.61 | $0.61 | 79.67% |
| Credo Technology Group Holding Ltd | 129.26 | 21.06 | 35.97 | 7.99% | $0.09 | $0.18 | 272.08% |
| ON Semiconductor Corp | 77.22 | 2.87 | 3.81 | 3.22% | $0.44 | $0.59 | -11.98% |
| STMicroelectronics NV | 44.72 | 1.29 | 2.05 | 1.33% | $0.31 | $1.06 | -1.97% |
| United Microelectronics Corp | 15.17 | 1.79 | 2.69 | 4.29% | $30.07 | $17.62 | -2.25% |
| Tower Semiconductor Ltd | 68.41 | 4.66 | 8.86 | 1.9% | $0.13 | $0.09 | 6.79% |
| Lattice Semiconductor Corp | 382.55 | 14.82 | 21.36 | 0.4% | $0.01 | $0.09 | 4.92% |
| Rambus Inc | 45.36 | 7.96 | 15.27 | 3.84% | $0.08 | $0.14 | 22.68% |
| Average | 69.41 | 9.6 | 12.59 | 5.67% | $39.32 | $34.27 | 34.59% |
Upon analyzing Intel, the following trends can be observed:
The Price to Earnings ratio of 606.17 for this company is 8.73x above the industry average, indicating a premium valuation associated with the stock.
With a Price to Book ratio of 1.63, significantly falling below the industry average by 0.17x, it suggests undervaluation and the possibility of untapped growth prospects.
With a relatively low Price to Sales ratio of 3.0, which is 0.24x the industry average, the stock might be considered undervalued based on sales performance.
The Return on Equity (ROE) of 3.98% is 1.69% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $7.85 Billion is 0.2x below the industry average, suggesting potential lower profitability or financial challenges.
Compared to its industry, the company has lower gross profit of $5.22 Billion, which indicates 0.15x below the industry average, potentially indicating lower revenue after accounting for production costs.
The company's revenue growth of 2.78% is significantly lower compared to the industry average of 34.59%. This indicates a potential fall in the company's sales performance.
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.
By evaluating Intel against its top 4 peers in terms of the Debt-to-Equity ratio, the following observations arise:
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.
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 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 industry sector.
This article was generated by Benzinga's automated content engine and reviewed by an editor.