Financial statement analysis and common stock valuation

Analysis of Profitability Ratios

Measures the income of Intel Corp. relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Analysis of Debt

• Total Debt (Carrying Amount)
• Total Debt (Fair Value)
• Weighted-average Interest Rate on Debt
• Interest Costs Incurred
• Adjusted Interest Coverage Ratio

Analysis of Short-term (Operating) Activity Ratios

Evaluates revenues and output generated by the Intel Corp. assets. Operating performance ratios describe the relationship between the Intel Corp. level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Inventory Turnover
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Inventory Processing Period
• Average Receivable Collection Period
• Operating Cycle
• Average Payables Payment Period
• Cash Conversion Cycle

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by Intel Corp..

Analysis of Reportable Segments

Intel Corp. operates in 3 segments: Client Computing Group (CCG); Data Center and AI (DCAI); and Intel Foundry.

• Segment Profit Margin
• Net revenue
• Operating income (loss)

Analysis of Geographic Areas

Intel Corp. operates in 2 regions: United States and Other countries.

• Area Asset Turnover
• Net revenue
• Property, plant, and equipment, net

Enterprise Value to EBITDA (EV/EBITDA)

To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.

• Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
• EV to EBITDA Ratio, Current
• EV to EBITDA Ratio, Historical

Common-Size Balance Sheet: Assets
Quarterly Data

Assets components shown as percentage of total assets.

Common Stock Valuation Ratios

Relative valuation technique determine the value of Intel Corp. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Current Valuation Ratios
• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of Intel Corp. common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

An approach to decomposing Intel Corp. return on equity, return on assets, and net profit margin ratio as the product of other financial ratios.

• Two-Component Disaggregation of ROE
• Three-Component Disaggregation of ROE
• Two-Component Disaggregation of ROA