Since the beginning of the year, INTC share price is up by 14%. Is it worth buying?
July 02 2021 - 6:28AM
Finscreener.org
Intel Corporation (NASDAQ: INTC)
is one of the worldU+02019s largest chipmakers. It designs and
manufactures microprocessors for the global personal computer and
data center markets.
Key business segments: computer (54% of revenue in Q1), data
centers (28%), memory solutions (5.6%).
Investors were not pleased with the report for the first
quarter. Results in the data center segment were weak again. The
forecasts for the second quarter of 2021 did not please analysts.
EPS baseline forecast for 12 months is negative (-12%). In the long
term, earnings per share are expected to increase by 5.4% on
average per year.
Cash and equivalents on the balance sheet of the enterprise are
$ 22.4 billion with total assets of $ 150.6 billion.
Debt load is low - the debt/equity ratio is 46.4%, with a
conditionally borderline level of 70% and 74% median for the group
of comparable companies.
Intel Corporation has a dividend yield of 2.43% with a dividend
per share of $ 1.39 and a payout ratio of 26.00%. The company
regularly holds buybacks.
Pros:
Unlike its competitors, Intel does not outsource manufacturing
to Asia. This reduces the risks from geopolitics.
The shortage of semiconductors in the market has increased capex
and led to technological change.
Dividends and buybacks.
Cons:
High competition. Intel is currently working on a 7nm process
technology, while TSMC is already producing 5nm and working on
3nm.
Apple is gradually moving away from Intel solutions and is
working on its own M processors based on ARM architecture.
The shortage of semiconductors in the market forces chip makers
to have lost profits.
The median target of analysts for Intel is $63.71 at the current
quotation of $56.03 (data as of Thursday, 07/01/2021). This implies
about 13.75% upside potential from current levels for 12
months.
IntelU+02019s range of support level starts at $55.56, the last
area is at the price of $54.57 per share. All calculations are
based on pivot points technical analysis.
In Finscreener ranking INTC gets 3 and half stars.
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