Intel Corporation (INTC) Stock Analysis
As of February 16, 2025

 1. Company Overview

Intel Corporation, headquartered in Santa Clara, California, is one of the world’s largest semiconductor manufacturers, with a rich history dating back to 1968. Intel’s core business involves designing and manufacturing microprocessors, chipsets, and related technologies that power a wide range of computing devices—from personal computers and data centers to emerging applications such as autonomous vehicles and artificial intelligence. The company is actively investing in advanced process technologies and expanding its manufacturing capacity to address fierce competition from rivals like AMD, NVIDIA, and other ARM-based chipmakers.

2. Financial Performance

a. Revenue and Growth

• TTM Revenue: $53.10 billion
• YoY Revenue Growth: –2.08% (recent quarter vs. year-ago)
  Trend Overview:
  Intel’s revenue has shown modest fluctuations over recent years. Following a slight increase early in the cycle, revenues have trended lower amid challenging market conditions, reduced PC demand, and increased competitive pressure. The recent 2.08% decline reflects ongoing headwinds as the company works to transition to next-generation manufacturing technologies.

b. Profitability

• TTM Net Income: –$18.76 billion (Net Loss)
• EPS (TTM): –$4.38
• Profit Margin: –35.32%
• Return on Equity (ROE): –17.89%
• Return on Assets (ROA): –1.23%

Analysis:
Intel is currently experiencing significant profitability challenges. The deep net loss and negative profit margins underscore difficulties in controlling costs and generating sustainable earnings. High capital expenditures and competitive pricing pressures have weighed on margins, resulting in negative returns on equity and assets.

c. Cash Flow

• Operating Cash Flow (TTM): $8.29 billion
• Free Cash Flow (TTM): –$15.66 billion
• FCF Per Share: –$3.62

Analysis:
Despite generating positive operating cash flow, Intel’s free cash flow is negative due to heavy investments in capital expenditures required for modernizing production and developing new technologies. This negative free cash flow highlights the significant cash outlays necessary for the company’s turnaround efforts.

d. Balance Sheet

• Total Assets: $196.49 billion
• Total Liabilities: $91.45 billion
• Total Debt: $50.71 billion
• Cash & Equivalents: $22.06 billion
• Net Cash Position: –$27.80 billion
• Current Ratio: 1.33
• Debt-to-Equity Ratio: 0.48

Analysis:
Intel’s balance sheet shows moderate leverage with a debt-to-equity ratio of 0.48, though the net cash position is negative by approximately $27.8 billion. The current ratio of 1.33 indicates that the company can meet short-term obligations, but ongoing capital-intensive investments and restructuring efforts add pressure to its liquidity profile.

3. Valuation

• Trailing PE Ratio: Not applicable (due to negative earnings)
• Forward PE Ratio: 48.54
• Price-to-Sales (PS) Ratio: 1.90
• Price-to-Book (PB) Ratio: 1.03
• PEG Ratio: 3.47
• Enterprise Value (EV): $129.98 billion
• EV / Sales: 2.45
• EV / EBITDA: 17.27

Analysis:
Given its current losses, Intel’s trailing PE ratio is not applicable, but the forward PE of 48.54 suggests that the market is pricing in a significant recovery in earnings. The PS and PB ratios indicate that the stock trades at a relatively modest multiple of its sales and book value. However, a high EV/EBITDA multiple reflects investor caution regarding Intel’s turnaround prospects amid intense competitive pressures.

4. Market Performance

• Current Stock Price: $23.60
• 52-Week Range: $18.51 – $46.63
• 52-Week Price Change: –45.32%
• Beta: 1.07
• Average Volume (20 Days): 103.99 million shares
• Short Interest: 108.57 million shares (2.51% of outstanding)

Analysis:
Intel’s share price has declined significantly over the past year, reflecting the challenges the company faces in a rapidly evolving semiconductor industry. A beta of 1.07 indicates volatility similar to the broader market. High trading volumes and moderate short interest suggest that investors are actively reassessing the company’s near-term prospects.

5. Financial Health and Risks

Liquidity

• Current Ratio: 1.33
• Quick Ratio: 0.94

Risk: While the current ratio is above 1, the quick ratio below 1 indicates a reliance on inventory to meet short-term liabilities, which may be a concern if sales slow further.

Leverage

• Debt-to-Equity Ratio: 0.48
• Debt-to-EBITDA Ratio: 6.52
• Interest Coverage: –3.70

Risk: Despite moderate leverage on the balance sheet, the high debt-to-EBITDA ratio and negative interest coverage ratio, driven by negative operating income, suggest that Intel’s debt levels are unsustainable if the turnaround does not materialize.

Operational and Market Risks

• Manufacturing Challenges: Delays in transitioning to advanced process nodes could erode Intel’s competitive edge.
• Competitive Pressure: Strong competition from AMD, NVIDIA, and ARM-based chipmakers is intensifying market pressure.
• Capital Expenditure Demands: Heavy investments required for new fabs and technology development strain free cash flow.
• Economic and Regulatory Risks: Global economic uncertainties and potential trade restrictions could further impact Intel’s performance.

Dividend Policy

• Dividend: Currently, Intel does not pay a dividend.
• Payout Ratio: N/A

Risk: With no dividend payout and negative free cash flow, returning capital to shareholders may be challenging in the near term.

Altman Z-Score & Piotroski F-Score

• Altman Z-Score: 1.50 (Below the safe threshold of 3, indicating elevated bankruptcy risk)
• Piotroski F-Score: 3 (Reflects financial weakness)

Risk: Low Altman and Piotroski scores signal financial distress and operational inefficiencies that require prompt management action.

6. Conclusion

Pros:

• Strong Market Legacy: Intel remains a global leader with deep expertise in semiconductor manufacturing and extensive customer relationships across multiple sectors.
• Investment in Advanced Technologies: Ongoing R&D and capital investments in new fabs and process nodes are expected to drive future competitiveness.
• Diversified Product Portfolio: Intel’s range of products—from traditional processors to emerging AI and autonomous solutions—positions it for long-term growth if execution improves.

Cons:

• Negative Profitability: Recent financial performance is marked by significant net losses and negative margins, raising concerns about the company’s turnaround strategy.
• High Capital Expenditures: Heavy investments are currently weighing on free cash flow, which is deeply negative.
• Intense Competition and Execution Risks: Ongoing manufacturing challenges and strong competitive forces may delay or derail the anticipated recovery.
• Financial Distress Indicators: Low Altman Z-Score and Piotroski F-Score suggest that Intel’s financial health is at risk, necessitating close monitoring by investors.

Disclaimer: This analysis is provided for informational purposes only and does not constitute investment advice. Investors should perform their own research or consult a financial advisor before making any investment decisions.