Should you buy Intel stock? (March 2024)

Published first at https://www.3minutebreakdowns.com
Intel stock analysis. Ticker: $INTC

Intel is one of the world’s leading technology companies but over the last 5 years, the stock has returned negative 5%, including dividends.

At the latest price, the company has a market cap just under 192 billion. With 7 billion of cash, 24 billion of investments and 49 billion of long term debt the enterprise value is 210 billion.

Revenue over the last 12 months comes to 54 billion with 12.5 billion of adjusted ebitda and 1.7 billion of net income but free cash flow is negative 14 billion. So Intel stock is valued at just under 4 times revenue.

The story of Intel is one of missed opportunity. After years of success in PCs and servers, the company failed to assert itself in the smartphone market and was slow to adopt EUV technology which stands for extreme ultraviolet lithography.

An unwillingness to produce low-margin chips and performance issues for 10 nanometre chips opened the door to competition. Apple began building its own silicon while AMD quickly took market share in servers. Today, Intel has also missed out on the boom in GPUs that has seen Nvidia become one of largest companies in the world. AS you can see in the chart, Intel’s net income has declined dramatically.

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