Why INTC Stock Could Reach Their 52-Week Highs

Today we are looking at Intel Corporation (NASDAQ: INTC), to determine if the INTC stock is a good buy. We will look at INTC financial ratios, analyst ratings, and valuation to determine an Intel stock forecast for 2025. What does INTC Do? Intel Corporation engages in the design, manufacture, and sale of computer products and technologies worldwide. The company operates through CCG, DCG, IOTG, Mobileye, NSG, PSG, and All Other segments. It offers platform products, such as central processing units and chipsets, and system-on-chip and multichip packages; and non-platform or adjacent products, including accelerators, boards and systems, connectivity products, graphics, and memory and storage products. Laying out Information for an Intel Stock Forecast Who are Intel corporation's Competitors? In order to undergo a comparable analysis (to determine INTC stocks value), we need to first outline who INTC's competitors are. These competitors need to be publicly listed, have valid financial metrics/multiples, operate in a similar manner to INTC, and have a market cap similar to INTC (if possible). By keeping this in mind, I found the following list of companies to be some of INTC stock's closest competitors: QCOM, ADBE, AVGO, CSCO, TXN, INTU, AMD, AMAT, ASML, and MU INTC Stock News and Information Intel Corporation's Earnings: INTC Yearly Earnings are Less than Ideal INTC Revenues: In FY 2021, INTC experienced a yearly increase in revenues of $1.16B (or 1.49%) resulting in a total revenue figure of $79.02B. INTC Cost of Revenues: In FY 2021, INTC experienced a yearly increase in their cost of revenues of $954M (2.78%), resulting in a total revenue figure of $35.21B. Since the increase (of 2.78%), in INTC's cost of revenue, was greater (by 1.3%) than the increase (of 1.49%) in INTC's revenues, we should expect that INTC experienced a very small decrease in their FY gross profits. INTC Gross Profit: In FY 2021, INTC experienced a yearly increase in its gross profit of $203M (or 0.47%) resulting in a total gross profit of $43.81B. This decrease is contrary to the conclusion from the comparison of revenues and cost of revenues between FY and FY. INTC EBITDA: In FY 2021, INTC experienced a yearly decrease in their EBITDA of $-3.85B (or -10.16%) resulting in a total EBITDA of $34.09B. INTC Net Income: In FY 2021, INTC experienced a yearly decrease in its net income of $-1.03B (or -4.93%) resulting in a total net income of $19.87B. INTC EPS: As a result of INTC's decrease in net income of $-1.03B, INTC's EPS also decreased (by $-0.09) from $4.98 in FY 2020 to $4.89 in FY 2021 Overall, Intel performed slightly poorly for the fiscal year of 2021. This is due to the fact that their EBITDA, Net Incomes, and EPS all experienced slight decreases. This performance was not horrible, however, given the performance of other large semiconductor stocks, Intel should have done better. Let's move on to see if Intel has been able to perform better financially in a closer timeframe. INTC Quarterly Earnings Show Hope  INTC Revenues: In Q1 2022, INTC experienced a quarterly decrease in revenues of $-2.17B (or -10.6%) resulting in a total revenue figure of $18.35B. INTC Cost of Revenues: In Q1 2022, INTC experienced a quarterly decrease in their cost of revenues of $-410M (-4.31%), resulting in a total revenue figure of $9.11B. Since the decrease (of -4.31%), in INTC's cost of revenue, was greater (by 6.29%) than the decrease (of -10.6%) in INTC's revenues, we should expect that INTC experienced a decrease (roughly -6.29%) in their Q1 gross profits. INTC Gross Profit: In Q1 2022, INTC experienced a quarterly decrease in its gross profit of $-1.76B (or -16.03%) resulting in a total gross profit of $9.24B. This decrease is consistent with our conclusion from the comparison of revenues and cost of revenues between Q1 and Q4. INTC EBITDA: In Q1 2022, INTC experienced a quarterly increase in their EBITDA of $5.6B (or 66.7%) resulting in a total EBITDA of $14.01B. This increase (of 66.7%) stems from the fact that INTC experienced a decrease in their gross profits of -16.03% (as we saw in the previous bullet point). INTC Net Income: In Q1 2022, INTC experienced a quarterly increase in its net income of $3.49B (or 75.49%) resulting in a total net income of $8.11B. INTC EPS: As a result of INTC's increase in net income of $3.49B, INTC's EPS also increased (by $0.85) from $1.14 in Q4 2021 to $1.99 in Q1 2022 Overall, it seems as though INTC had a great financial performance (due to EPS of $0.85) as many of their financial metrics grew, most notably their EPS (by $0.85), as well as their net income (by $3.49B), despite their revenues and gross profits both declining. Additionally, INTC stock beat their EPS estimate by $0.06 (or 7.41%), as they reported an EPS of $0.87 for the quarter (compared to their estimated EPS of $0.81). Is INTC Share Dilution an Issue? As part of their Q1 2022 earnings release, INTC stated that they currently have 4.07B Shares Outstanding (weighted average), which is up 0 shares (from 4.07B shares outstanding in Q4 2021). Furthermore, INTC stock has up to 26M of shares that they can issue (thereby diluting INTC's stock). This maximum dilution for the period would only have a dilutionary effect on INTC of 0.64%. Both the previous quartely share dilution (or lack thereof) and the potential dilution that the INTC stock can incur are very small and essentially negligible. This is great news for INTC investors as dilution is one less thing that they have to worry about. What are Analysts Rating INTC Stock as? Here is the current spread of INTC stock ratings. In total there are 32 INTC stock ratings, which fall in the following categories. 12 Buys 14 Holds 6 Sells Analyst Ratings have provided relatively strong indicators of future price movement, which is why they are used to determine if INTC stock is a buy or sell. Overall, the analysts seem rather mixed, with the overall consensus leaning a bit towards the bullish side of neutral. This is good for INTC investors as the majority of analysts think that the INTC stock is either at/below its fair market value. INTC Stock Prediction Implies Large Upside Using a Comparable Analysis to Determine a INTC Price Forecast for 2025 INTC's current P/E ratio is 6.51, compared to the average P/E ratio of INTC's peers being 25.7. This implies that INTC is undervalued and their share price should change by a factor of 294.63% to be at fair value (based on INTC's P/E compared to the P/E of their peers). INTC's D/E ratio is 0.71, compared to the average D/E ratio of INTC's peers being 1.33. This implies that INTC is undervalued and their share price should change by a factor of 87.52% to be at fair value (based on INTC's D/E compared to the D/E of their peers). INTC's current ROE ratio is 26.34%, compared to the average ROE ratio of INTC's peers being 37.55%. This implies that INTC is overvalued and its share price should change by a factor of -29.85% to be at fair value (based on INTC's ROE compared to the ROE of its peers). Overall, by taking an average of these 3 comparable ratios, we arrive at an estimated fair value for the INTC stock of 117.43%. Apllying this to INTC stock's current price of $38.92 implies an Intel Price Forcast of $84.62/share for 2025. Is INTC a good stock to buy right now? Overall, due to the lack of dilution, good recent earnings, slightly bullish analyst ratings, and the fact that our Intel Price Forecast for 2025 is $84.62, I have concluded that the INTC stock is a great candidate for a buy right now.

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Why INTC Stock Could Reach Their 52-Week Highs

Jul 25, 2022

bullish

general Analysis

[6 min Read]

blog post cover photo

Photo by: Christian Wiediger

Today we are looking at Intel Corporation (NASDAQ: INTC), to determine if the INTC stock is a good buy. We will look at INTC financial ratios, analyst ratings, and valuation to determine an Intel stock forecast for 2025.

What does INTC Do?

Intel Corporation engages in the design, manufacture, and sale of computer products and technologies worldwide. The company operates through CCG, DCG, IOTG, Mobileye, NSG, PSG, and All Other segments. It offers platform products, such as central processing units and chipsets, and system-on-chip and multichip packages; and non-platform or adjacent products, including accelerators, boards and systems, connectivity products, graphics, and memory and storage products.

Laying out Information for an Intel Stock Forecast

Who are Intel corporation's Competitors?

In order to undergo a comparable analysis (to determine INTC stocks value), we need to first outline who INTC's competitors are.

These competitors need to be publicly listed, have valid financial metrics/multiples, operate in a similar manner to INTC, and have a market cap similar to INTC (if possible).

By keeping this in mind, I found the following list of companies to be some of INTC stock's closest competitors:

QCOM, ADBE, AVGO, CSCO, TXN, INTU, AMD, AMAT, ASML, and MU

INTC Stock News and Information

Intel Corporation's Earnings:

INTC Yearly Earnings are Less than Ideal

  • INTC Revenues: In FY 2021, INTC experienced a yearly increase in revenues of $1.16B (or 1.49%) resulting in a total revenue figure of $79.02B.
  • INTC Cost of Revenues: In FY 2021, INTC experienced a yearly increase in their cost of revenues of $954M (2.78%), resulting in a total revenue figure of $35.21B. Since the increase (of 2.78%), in INTC's cost of revenue, was greater (by 1.3%) than the increase (of 1.49%) in INTC's revenues, we should expect that INTC experienced a very small decrease in their FY gross profits.
  • INTC Gross Profit: In FY 2021, INTC experienced a yearly increase in its gross profit of $203M (or 0.47%) resulting in a total gross profit of $43.81B. This decrease is contrary to the conclusion from the comparison of revenues and cost of revenues between FY and FY.
  • INTC EBITDA: In FY 2021, INTC experienced a yearly decrease in their EBITDA of $-3.85B (or -10.16%) resulting in a total EBITDA of $34.09B.
  • INTC Net Income: In FY 2021, INTC experienced a yearly decrease in its net income of $-1.03B (or -4.93%) resulting in a total net income of $19.87B.
  • INTC EPS: As a result of INTC's decrease in net income of $-1.03B, INTC's EPS also decreased (by $-0.09) from $4.98 in FY 2020 to $4.89 in FY 2021

Overall, Intel performed slightly poorly for the fiscal year of 2021. This is due to the fact that their EBITDA, Net Incomes, and EPS all experienced slight decreases. This performance was not horrible, however, given the performance of other large semiconductor stocks, Intel should have done better. Let's move on to see if Intel has been able to perform better financially in a closer timeframe.

INTC Quarterly Earnings Show Hope

  • INTC Revenues: In Q1 2022, INTC experienced a quarterly decrease in revenues of $-2.17B (or -10.6%) resulting in a total revenue figure of $18.35B.
  • INTC Cost of Revenues: In Q1 2022, INTC experienced a quarterly decrease in their cost of revenues of $-410M (-4.31%), resulting in a total revenue figure of $9.11B. Since the decrease (of -4.31%), in INTC's cost of revenue, was greater (by 6.29%) than the decrease (of -10.6%) in INTC's revenues, we should expect that INTC experienced a decrease (roughly -6.29%) in their Q1 gross profits.
  • INTC Gross Profit: In Q1 2022, INTC experienced a quarterly decrease in its gross profit of $-1.76B (or -16.03%) resulting in a total gross profit of $9.24B. This decrease is consistent with our conclusion from the comparison of revenues and cost of revenues between Q1 and Q4.
  • INTC EBITDA: In Q1 2022, INTC experienced a quarterly increase in their EBITDA of $5.6B (or 66.7%) resulting in a total EBITDA of $14.01B. This increase (of 66.7%) stems from the fact that INTC experienced a decrease in their gross profits of -16.03% (as we saw in the previous bullet point).
  • INTC Net Income: In Q1 2022, INTC experienced a quarterly increase in its net income of $3.49B (or 75.49%) resulting in a total net income of $8.11B.
  • INTC EPS: As a result of INTC's increase in net income of $3.49B, INTC's EPS also increased (by $0.85) from $1.14 in Q4 2021 to $1.99 in Q1 2022

Overall, it seems as though INTC had a great financial performance (due to EPS of $0.85) as many of their financial metrics grew, most notably their EPS (by $0.85), as well as their net income (by $3.49B), despite their revenues and gross profits both declining.

Additionally, INTC stock beat their EPS estimate by $0.06 (or 7.41%), as they reported an EPS of $0.87 for the quarter (compared to their estimated EPS of $0.81).

Is INTC Share Dilution an Issue?

As part of their Q1 2022 earnings release, INTC stated that they currently have 4.07B Shares Outstanding (weighted average), which is up 0 shares (from 4.07B shares outstanding in Q4 2021). Furthermore, INTC stock has up to 26M of shares that they can issue (thereby diluting INTC's stock). This maximum dilution for the period would only have a dilutionary effect on INTC of 0.64%. Both the previous quartely share dilution (or lack thereof) and the potential dilution that the INTC stock can incur are very small and essentially negligible. This is great news for INTC investors as dilution is one less thing that they have to worry about.

What are Analysts Rating INTC Stock as?

Here is the current spread of INTC stock ratings. In total there are 32 INTC stock ratings, which fall in the following categories.

  • 12 Buys
  • 14 Holds
  • 6 Sells

Analyst Ratings have provided relatively strong indicators of future price movement, which is why they are used to determine if INTC stock is a buy or sell. Overall, the analysts seem rather mixed, with the overall consensus leaning a bit towards the bullish side of neutral. This is good for INTC investors as the majority of analysts think that the INTC stock is either at/below its fair market value.

INTC Stock Prediction Implies Large Upside

Using a Comparable Analysis to Determine a INTC Price Forecast for 2025

INTC's current P/E ratio is 6.51, compared to the average P/E ratio of INTC's peers being 25.7. This implies that INTC is undervalued and their share price should change by a factor of 294.63% to be at fair value (based on INTC's P/E compared to the P/E of their peers).

INTC's D/E ratio is 0.71, compared to the average D/E ratio of INTC's peers being 1.33. This implies that INTC is undervalued and their share price should change by a factor of 87.52% to be at fair value (based on INTC's D/E compared to the D/E of their peers).

INTC's current ROE ratio is 26.34%, compared to the average ROE ratio of INTC's peers being 37.55%. This implies that INTC is overvalued and its share price should change by a factor of -29.85% to be at fair value (based on INTC's ROE compared to the ROE of its peers).

Overall, by taking an average of these 3 comparable ratios, we arrive at an estimated fair value for the INTC stock of 117.43%. Apllying this to INTC stock's current price of $38.92 implies an Intel Price Forcast of $84.62/share for 2025.

Is INTC a good stock to buy right now?

Overall, due to the lack of dilution, good recent earnings, slightly bullish analyst ratings, and the fact that our Intel Price Forecast for 2025 is $84.62, I have concluded that the INTC stock is a great candidate for a buy right now.

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INTC

Intel Corporation

36.11

-0.09
-0.25%

Return

-7.11%
Change % Since Posting
-2.76
Change Since Posting
38.87
Price When Posted

Metrics

84.62
Target Price
8/ 10
Confidence
1-3 Years
Timeframe
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