INTC Investment Analysis Report & Stock Research, Intel Corp.

Intel Corporation (INTC)

INTC Stock Report

2-Year Price History

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NASDAQ:INTC
$22.09
(3/18 1:19PM)
-0.7%
Open$22.19 Mkt Cap$122.9 Billion
High$22.35 52Wk High$22.35
Low$22.01 52Wk Low$14.62
Volume35.9 Million Avg Vol 10D60.7 Million

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INTC Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at INTC through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 5.46x and 3.03x respectively.

Utilizing this range we can see that INTC’s current Price to Sales per share ratio of 3.34x is significantly below its average levels historically. In fact, with a current price of $21.27, INTC is a full 22% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for INTC.

INTC Cash Earnings

As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of INTC, Ockham views their current Cash Earnings as below its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from INTC. For example, INTC's Cash Earnings ratio per share has fluctuated between 9.98 and 18.01 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where INTC is with respect to prior business periods.

With a historical average Cash Earnings ratio of 14.00, the current Cash Earnings ratio of 12.44 is a positive opportunity for value in the Ockham view. Naturally, we would love to see a deeper value opportunity for INTC, but to get there one of two things must occur (or both). Either the stock price must decline further to increase the long term buying opportunity, or the management at INTC needs to earn more cash. If either, or both, of these occur, then we could see a significant gap emerge between what investors were willing to pay for in the past, and where INTC is trading currently (latest close price of $21.27).

INTC Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.

When reviewing dividend yields for INTC, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. INTC’s estimated annual dividend is $0.63 resulting in a current dividend yield of 2.96%. The highest dividend yield from INTC over recent history was 4.66% while the lowest dividend yield was 0.21%. INTC’s current dividend yield is therefore significantly higher than its median dividend yield historically. In fact, the current yield is 21.56% above the median which weighs very positively on our analysis of INTC.

Peer Comparison

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Intel Corp. Industry Grouping

(3/17/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including INTC) 31.69 8.69 » 76.77 3.18 1.88 » 10.87 8.03% 13.11%
*10 year range does not include current year values
Intel Corp. INTC $122.9 Billion $22.24 12.44 6.77 » 33.27 3.34 1.78 » 9.72 0.53% 15.58%
Qualcomm, Inc. QCOM $65.4 Billion $38.90 23.90 14.12 » 65.08 6.19 4.51 » 25.39 16.37% 16.80%
Texas Instruments, Inc. TXN $30.9 Billion $24.91 12.44 5.73 » 58.18 2.86 1.36 » 11.56 -3.68% 24.00%
Thermo Fisher Scientific, Inc. TMO $20.5 Billion $49.97 12.54 6.21 » 48.05 2.03 1.06 » 5.10 35.59% 5.34%
Kyocera Corp. KYO $18.3 Billion $96.53 27.18 6.49 » 27.24 1.81 0.73 » 2.60 0.82% 5.18%
Applied Materials, Inc. AMAT $17.0 Billion $12.66 82.40 10.94 » 185.29 3.00 1.72 » 9.72 -8.95% 14.23%
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The most recent Stocks on Financial TV & Blogs from impactful financial news sources
Tech Trader Daily-Barron's

Tech Trader Daily-Barron's: Margins are in Focus for Intel Corporation

Improving profit margins is a great sign for investors, Tech Trader Daily-Barron's discussed INTC's margins recently.

Intel Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; INTC has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.

“… But he says he remains confident in his Sell rating, “given our confidence that AMD’s products will remain inferior to INTEL’s (INTC) at least through 2010, resulting in share ... …”

Squawk On The Street

Squawk On The Street: Will INTC Test Its 52-week High?

When a stock reaches a notable high point, investors have to ask themselves: take profits or let it run? See what Squawk On The Street recommends for Intel Corporation and obviously Ockham has an opinion as well.

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Squawk On The Street

See More News on INTC from Squawk On The Street

The latest news from Squawk On The Street on INTC is available through Ockham's news analytics platform RazorWire.

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Tech Trader Daily-Barron's

Stay Current on INTC's News on Tech Trader Daily-Barron's

News has broken via the television and viral blogs regarding INTC, so investors should take an interest in learning what was said.

The Ockham valuation currently has a Fairly Valued stance on INTC because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Intel Corporation has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.

“… Google (GOOG) is working with INTEL (INTC), Sony (SNE) and Logitech (LOGI) on a new service for navigating the Web on televisions, according to both the Wall Street Journal and ... …”

The Opening Bell on Fox Business

More News Than Normal on INTC from The Opening Bell on Fox Business

We are observing a lot of attention being paid to INTC in the news, so if you hold the stock you may want to take a look at what is going on.

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Squawk On The Street

See More News on INTC from Squawk On The Street

Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on INTC from Squawk On The Street.

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In the Loop

INTC News Mentioned on In the Loop Recently

News has broken via the television and viral blogs regarding INTC, so investors should take an interest in learning what was said.

Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Intel Corporation has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on INTC because it trades within the price range that we would expect given current market conditions and fundamentals.

“… The project called google tv will use chips made by INTEL. Web-enabled tv currently allow users to watch youtube videos, play games and stream movies from netflix. …”

Inside Track With Deidre Bolton and Erik Schatzker

Stay Current on INTC's News on Inside Track With Deidre Bolton and Erik Schatzker

News has broken via the television and viral blogs regarding INTC, so investors should take an interest in learning what was said.

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6:05P, Mar. 17,2010 INTC $22.21 Intel Corp.
Mad Money

Blue Chips and INTC on Mad Money

Bellwether stocks are those that give you are good indication of the direction of their industry and the economy. Mad Money mentioned Intel Corporation in their discussion of blue chip stocks.

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5:31P, Mar. 17,2010 INTC $22.23 Intel Corp.
Fast Money

Look Out for Intel Corporation: Its Very Active in the News

INTC has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.

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View All Intel Corp. Stock News

Key Fundamentals

INTC - Intel Corporation Fundamentals
Price (3/18 1:19PM) $22.09
Volume (3/18 1:19PM) 35.9 Million
Last Close Price $22.24
10 Day Average Volume 60.7 Million
13 Week Price Range $18.95 - $22.35
52 Week Price Range $14.62 - $22.35
LTM Revenue $35.1 Billion
 
Shares Outstanding (12/2009) 5.5 Billion
Market Capitalization $122.9 Billion
Shares Held By Institutions 3.7 Billion
Institutional Holders 1,928
% Shares Held By Institutions 66.60%
Earnings Per Share (EPS) $0.77
P/E Ratio 28.90
Book Value Per Share $7.55
 
Gross Margin 70.00%
Annual Dividend 0.63
Dividend Yield 2.80%
Beta 1.16
Fiscal Year Ends December

About Intel Corp.

Intel Corporation is considered to operate in the Technology sector. They specifically operate in the Semiconductor-Broad Line business segment contained within the Electronics industry.

A semiconductor chip maker, which develops advanced integrated digital technology products, mainly integrated circuits, for industries such as computing and communications.