We like the company due to the high market share within the semiconductor industry (The biggest rival is Texas Instruments with a market capitalization of $32 billion, one third from the valuation of Intel). The stock is a basic investment for technology investors with one of the most attractive dividend yields within the sector. The company is acting in a very cyclic industry but has a beta ratio of only 1.06. Despite the fact that the company is near one-year lows, we believe that the sell-off could go on due to recession items. Another big burden is the low market share in the very fast growing Smartphone market. Intel raised dividends for 9 consecutive years (Dividend Challenger) and has a long-term dividend growth rate over 25 percent. The company serves $10.5 billion on cash and short-term investments at $7.2 billion debt. The strong operating cash flow (EBITDA of $23.2 billion) leads to an investment payback of 4.4 years.
These are the competitors:
STMicroelectronics (STM) has a market
capitalization of $5.44Billion. The company
generates revenue of $9,735.00 million and has a net
income of $155.00 million. The firm’s EBITDA amounts to $1,635.00 million. The EBITDA margin
is 16.80% (operating margin 3.74% and net profit margin 1.59%).
The total debt represents 12.95% of the company’s assets
and the total debt in relation to the equity amounts to 20.60%. Last fiscal year, a
return on equity of 8.56% was realized. Twelve trailing months earnings per share reached a
value of $0.15. Last fiscal year, the
company paid $0.40 in form of dividends to shareholders.
Here are the price ratios
of the company: The P/E ratio is 41.91, Price/Sales 0.58 and Price/Book ratio 0.71. Dividend Yield: 6.53%. The beta ratio is 1.80.
Maxim Integrated Products (MXIM) has a market
capitalization of $7.78Billion. The company
generates revenue of $2,403.53 million and has a net
income of $354.92 million. The firm’s EBITDA amounts to $743.63 million. The EBITDA margin
is 30.94% (operating margin 22.25% and net profit margin 14.77%).
The total debt represents 8.27% of the company’s assets
and the total debt in relation to the equity amounts to 12.18%. Last fiscal year, a
return on equity of 14.06% was realized. Twelve trailing months earnings per share reached a
value of $1.18. Last fiscal year, the
company paid $0.88 in form of dividends to shareholders.
Here are the price ratios
of the company: The P/E ratio is 22.53, Price/Sales 3.24 and Price/Book ratio 3.07. Dividend Yield: 3.60%. The beta ratio is 1.15.
Texas Instruments (TXN) has a market
capitalization of $31.64Billion. The company
generates revenue of $13,735.00 million and has a net
income of $2,236.00 million. The firm’s EBITDA amounts to $4,007.00 million. The EBITDA margin
is 29.17% (operating margin 21.78% and net profit margin 16.28%).
The total debt represents 27.28% of the company’s assets
and the total debt in relation to the equity amounts to 51.06%. Last fiscal year, a
return on equity of 20.58% was realized. Twelve trailing months earnings per share reached a
value of $1.37. Last fiscal year, the
company paid $0.56 in form of dividends to shareholders.
Here are the price ratios
of the company: The P/E ratio is 20.32, Price/Sales 2.30 and Price/Book ratio 2.89. Dividend Yield: 3.02%. The beta ratio is 1.09.
Avago Technologies (AVGO) has a market
capitalization of $8.13Billion. The company
generates revenue of $2,336.00 million and has a net
income of $552.00 million. The firm’s EBITDA amounts to $721.00 million. The EBITDA margin
is 30.86% (operating margin 24.14% and net profit margin 23.63%).
The total debt represents 0.25% of the company’s assets
and the total debt in relation to the equity amounts to 0.30%. Last fiscal year, a
return on equity of 31.44% was realized. Twelve trailing months earnings per share reached a
value of $2.23. Last fiscal year, the
company paid $0.35 in form of dividends to shareholders.
Here are the price ratios
of the company: The P/E ratio is 14.90, Price/Sales 3.48 and Price/Book ratio 4.07. Dividend Yield: 1.93%. The beta ratio is not calculable.
NXP Semiconductors (NXPI) has a market
capitalization of $5.50Billion. The company
generates revenue of $4,194.00 million and has a net
income of $79.00 million. The firm’s EBITDA amounts to $916.00 million. The EBITDA margin
is 21.84% (operating margin 7.75% and net profit margin 1.88%).
The total debt represents 57.46% of the company’s assets
and the total debt in relation to the equity amounts to 331.79%. Last fiscal year, a
return on equity of -4.13% was realized. Twelve trailing months earnings per share reached a
value of $-1.69. Last fiscal year, the
company paid $0.00 in form of dividends to shareholders.
Here are the price ratios
of the company: The P/E ratio is not calculable, Price/Sales 1.32 and Price/Book ratio 4.81. Dividend Yield: None%. The beta ratio is not calculable.
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* I have no positions in INTC. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.
For the other stocks: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.
The stock analysis, including the rating and up/down potential, is based on historical information and provided by several data provider like Thompson Reuters, Morningstar, GoogleFinance, YahooFinance and MSN. The analysis assumes the stock will perform in the future as it has in the past. This is generally never true. Material presented here is for informational purposes only. Before buying or selling a security, you should do your own research and reach your own conclusion.
