INTEL NDQ-INTC RECENT

PRICE 38.59 P/ERATIO 45.9(Trailing:

Median: 12.0) P/E RATIO 2.82 YLD 1.3%
45.4 RELATIVE DIV’D VALUE
LINE
TIMELINESS 3 Raised 7/14/23 High:
Low:
29.3
19.2
26.0
20.1
37.9
23.5
37.5
24.9
38.4
27.7
47.6
33.2
57.6
42.0
60.5
42.9
69.3
43.6
68.5
47.9
56.3
24.6
38.8
24.7
Target Price Range
2026 2027 2028
SAFETY 2 Lowered 3/3/23 LEGENDS
6.0 x ″Cash Flow″ p sh
TECHNICAL 5 Lowered 9/15/23 . . . . Relative Price Strength
Options: Yes
160
BETA .90 (1.00 = Market) Shaded area indicates recession 120
100
18-Month Target Price Range 80
Low-High Midpoint (% to Mid) 60
50
$12-$40 $26 (-35%) 40
2026-28 PROJECTIONS 30
Ann’l Total
Price Gain Return 20
High 55 (+45%) 11%
Low 40 (+5%) 3% 15
% TOT. RETURN 8/23
Institutional Decisions THIS VL ARITH.*
4Q2022 1Q2023 2Q2023 Percent STOCK INDEX
36 1 yr. 13.8 10.6
to Buy 977 941 954 shares 24
to Sell 1395 1385 1299 traded 3 yr. -24.4 45.8
12
Hld’s(0000)254880525422242567662 5 yr. -17.0 43.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 © VALUE LINE PUB. LLC 26-28
6.59 6.76 6.36 7.92 10.80 10.79 10.61 11.77 11.72 12.56 13.39 15.69 16.78 19.17 19.42 15.24 12.50 13.65 Sales per sh 16.35
1.98 1.74 1.65 2.92 3.62 3.51 3.30 4.02 4.07 4.10 5.02 6.44 7.24 8.12 7.94 5.00 3.45 4.90 ‘‘Cash Flow’’ per sh 7.40
1.18 .92 .77 2.05 2.39 2.13 1.89 2.31 2.33 2.72 3.47 4.59 4.89 5.31 5.47 1.85 .60 1.75 Earnings per sh A 4.00
.45 .55 .56 .63 .78 .87 .90 .90 .96 1.04 1.08 1.20 1.26 1.32 1.39 1.46 .74 .70 Div’ds Decl’d per sh B ■ 1.50
.86 .93 .82 .94 2.15 2.23 2.16 2.13 1.55 2.03 2.51 3.36 3.78 3.56 4.99 6.06 6.50 7.00 Cap’l Spending per sh 9.00
7.35 7.03 7.55 8.97 9.18 10.36 11.73 11.77 13.12 14.19 14.91 16.60 18.10 19.95 23.44 24.52 24.75 25.60 Book Value per sh 27.25
5818.0 5562.0 5523.0 5511.0 5000.0 4944.0 4967.0 4748.0 4725.0 4730.0 4687.0 4516.0 4290.0 4062.0 4070.0 4137.0 4200.00 4300.00 Common Shs Outst’g C 4400.0
19.9 21.7 22.2 10.1 9.2 11.7 12.2 13.2 13.8 12.3 10.9 10.7 10.5 10.3 10.2 21.0 Bold figures are Avg Ann’l P/E Ratio 12.0
1.06 1.31 1.48 .64 .58 .74 .69 .69 .69 .65 .55 .58 .56 .53 .55 1.22 Value Line Relative P/E Ratio .65
estimates
1.9% 2.8% 3.3% 3.0% 3.5% 3.5% 3.9% 3.0% 3.0% 3.1% 2.9% 2.4% 2.4% 2.4% 2.5% 3.8% Avg Ann’l Div’d Yield 3.1%
CAPITAL STRUCTURE as of 7/1/23 52708 55870 55355 59387 62761 70848 71965 77867 79024 63054 52450 58720 Sales ($mill) 72000
Total Debt $49,046 mill. Due in 5 Yrs $9,075 mill. 36.2% 41.7% 40.5% 35.9% 40.2% 43.7% 44.2% 44.1% 40.5% 24.4% 38.0% 39.5% Operating Margin 42.0%
LT Debt $46,335 mill. LT Interest $725.0 mill. 6790.0 7380.0 7821.0 6266.0 6762.0 7520.0 9204.0 10482 9953.0 13035 12000 13500 Depreciation ($mill) D 15000
(31% of Cap’l)
Interest Coverage: 42.5x 9620.0 11704 11420 13146 16756 21570 21853 22499 22348 7641.4 2520 7525 Net Profit ($mill) 17600
Leases, Uncapitalized Annual rentals $179.0 mill. 23.7% 25.9% 19.6% 24.0% 46.6% 10.0% 12.8% 1.0% 9.9% 10.0% 10.0% 10.0% Income Tax Rate 15.0%
18.3% 20.9% 20.6% 22.1% 26.7% 30.4% 30.4% 28.9% 28.3% 12.1% 2520 7525 Net Profit Margin 24.4%
Pens. Assets-12/22 $2130 mill. Oblig. $2705 mill. 18516 11711 24689 15206 12079 12161 8929.0 22495 30256 18252 20000 22000 Working Cap’l ($mill) 25000
Pfd Stock None 13165 12107 20036 20649 25037 25098 25308 33897 33510 37684 39000 40000 Long-Term Debt ($mill) 40000
Common Stock 4,188,000,000 shs. 58256 55865 61982 67108 69885 74982 77659 81038 95391 101423 104000 110000 Shr. Equity ($mill) 120000
as of 7/21/23 13.6% 17.3% 14.1% 15.3% 18.0% 21.8% 21.4% 19.8% 17.5% 6.0% 2.0% 5.0% Return on Total Cap’l 11.0%
MARKET CAP: $162 billion (Large Cap) 16.5% 21.0% 18.4% 19.6% 24.0% 28.8% 28.1% 27.8% 23.4% 7.5% 2.5% 7.0% Return on Shr. Equity 14.5%
CURRENT POSITION 2021 2022 7/1/23 8.8% 13.1% 11.1% 12.3% 16.7% 21.4% 21.0% 20.9% 17.5% 1.6% NMF 4.0% Retained to Com Eq 9.0%
($MILL.) 47% 38% 40% 37% 30% 26% 26% 25% 25% 78% NMF 40% All Div’ds to Net Prof 38%
Cash Assets 28413 28338 24257
Receivables 9457 4133 2996 BUSINESS: Intel is a leading manufacturer of integrated circuits. sales. R&D: 27.7% of sales. ’22 deprec. rate: 7.5%. Has 131,900
Inventory (FIFO) 10776 13224 11984 Markets served: primarily makers of PCs; also communications, in- empl. Off./dir. own less than 1% of common shares; The Vanguard
Other 9072 4712 4119
dustrial automation, military, and other electronic equipment. Main Group, 8.8%; BlackRock, 8.0%. (3/23 proxy). Chairman.: Omar
Current Assets 57718 50407 43356
products: microprocessors (notably, the Pentium series), micro- Ishrak. Chief Executive Officer: Patrick Gelsinger. Incorporated: DE.
Accts Payable 5747 9595 8757
Debt Due 4591 4367 2711 controllers, and memory chips. Also sells computer modules and Addr.: 2200 Mission College Blvd., Santa Clara, CA 95054. Tele-
Other 17124 18193 15712 boards, and network products. Foreign business: about 74% of ’22 phone: 408-765-8080. Internet: www.intc.com.
Current Liab. 27462 32155 27180
Intel shares have shown some life of the way. Recall that the company received
ANNUAL RATES Past Past Est’d ’20-’22 late. The stock had been a market laggard a significant shot in the arm during the
of change (per sh) 10 Yrs. 5 Yrs. to ’26-’28 for an extended period of time, but rallied darkest days of the pandemic, which re-
Sales 6.0% 7.5% NMF
‘‘Cash Flow’’ 7.5% 10.0% 1.0% after the chip behemoth registered better- sulted in elevated demand for personal
Earnings 7.0% 8.0% NMF than-anticipated results for the June quar- computers, laptops, and other electric
Dividends 6.0% 6.0% 1.5% ter and issued an optimistic view for the devices. However, once things returned to
Book Value 9.0% 10.0% 3.0%
current period. Looking at it closer, Intel normal, demand for personal computers
Cal- QUARTERLY SALES ($ mill.) Full posted earnings per share of $0.13 during slowed considerably, which boosted inven-
endar Mar.31 Jun.30 Sep.30 Dec.31 Year the June interim, which was down tory in the distribution channel. Manage-
2020 19828 19728 18333 19978 77867 markedly from the year-earlier tally of ment notes that inventory has returned to
2021 19673 19631 19192 20528 79024 $0.29, but far better than the share loss more attractive levels, which augurs well
2022 18353 15321 15338 14042 63054 we were expecting. The song was largely for a continued earnings recovery through
2023 11715 12949 13460 14326 52450 the same at the top line, with revenues 2024. However, sales and earnings es-
2024 13300 14300 15000 16120 58720 falling 15% on a year-over-year basis, to timates for the back half of this year and
Cal- EARNINGS PER SHARE A Full $12.9 billion. That tally also exceeded our next pale in comparison to results during
endar Mar.31 Jun.30 Sep.30 Dec.31 Year target of $11.24 billion. Management cited the company’s heyday.
2020 1.45 1.23 1.11 1.52 5.31 improvement at the Client Computing We forecast earnings per share of
2021 1.39 1.28 1.71 1.09 5.47 business as a contributor to the relative $4.00 by the 2026-2028 time frame. Our
2022 .87 .29 .59 .10 1.85 outperformance, while the often-watched cautious optimism is based on a decent
2023 d.04 .13 .21 .30 .60 Data Center unit also beat expectations. economic backdrop over that time. Our
2024 .20 .42 .51 .62 1.75
While the June quarter was decent, projections are also based on a continued
Cal- QUARTERLY DIVIDENDS PAID B ■ Full all things considered, a robust out- recovery in the company’s operations.
endar Mar.31 Jun.30 Sep.30 Dec.31 Year look for the September quarter Though we like the Intel turnaround
2019 .315 .315 .315 .315 1.26 seemed to please the investment com- story, these shares don’t stand out at
2020 .33 .33 .33 .33 1.32 munity. Intel is in the early stages of a the recent valuation. Investors might
2021 .347 .347 .347 .347 1.39 turnaround, but the road back to being a wish to hold off until clearer signs that the
2022 .365 .365 .365 .365 1.46 prominent player in the chip industry may earnings turnaround is gaining traction.
2023 .365 .125 .125 be a lengthy one, with some bumps along Alan G. House September 22, 2023
(A) Dil. egs. Excl. nonrecurr. gains (losses): (B) Dividends historically paid late Feb., May, acquisition-related intangibles. Company’s Financial Strength A+
’10, (4¢); ’16, (60¢); ’17, ($1.48); ’18, (11¢); Aug., and Nov. ■ Dividend reinvestment plan Stock’s Price Stability 70
’19, (18¢); ’20, (37¢); ’21, (61¢); ’22, (9¢) . Next available. (C) In millions. Price Growth Persistence 50
egs. report due late Oct. (D) Excludes amortization of goodwill and other Earnings Predictability 45
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