Intel (INTC) Stock Analysis

Intel Dividend

The Intel (INTC) dividend was has been eliminated. 

Current Dividend Annualized: $0.00

Intel (INTC) Intrinsic Value – Margin of Safety Analysis            

(updated February 2025)

Normalized Diluted Earnings Per Share: -$4.38
Free Cash Flow Per Share (TTM): -$3.66
Cash Flow From Operations (CFO) Per Share (TTM): $1.94

Estimated Intrinsic Value: $23

Target Buy Price Based on Required Margin of Safety =  $14
(Required Margin of Safety Based On Risk Stability Grade:

A = 0%, B = 20%, C = 40%, D = 60%, F = 80%)

Target SELL Price Based on Estimated Intrinsic Value = $24
(Allow Overvaluation Adjusted by Risk Stability Grade:

A = 40%, B = 25%, C = 15%, D = 5%, F = 0%)

Risk / Stability Grade: D

A grade indicates a quality company with a strong balance sheet, high earnings quality, and a positive business environment. These stocks require the slimmest margin of safety within the stock universe.

B grade indicates a company with a good balance sheet, good earning quality, and a stable business environment. The margin of safety required should be greater than stocks with an A grade but less than the average stock.

C grade indicates a company with a sufficient balance sheet, at least average earnings quality, and a reasonably stable business environment. The margin of safety required is greater than A & B stocks, but less than D & F stocks.

D grade indicates a company in good standing but has issues that could affect its stability and long term risks. D rated stocks should require a large margin of safety when purchased.

F grade indicates a company with significant issues that are currently affecting its stability and long term risks. Require an extremely large margin of safety for F rated stocks when purchased.

Financial Risk Grade: D

A grade indicates an extremely low probability of a dividend cut. This rating is reserved for companies with strong balance sheets and/or excellent dividend histories.

B grade indicates a very low probability for a dividend cut.

C grade indicates a low probability for a dividend cut and/or average safety risk.

D grade indicates there are issues that should be considered concerning future dividend payments.

F grade indicates serious dividend safety risks. Investors should complete comprehensive due diligence before investing.

Business Quality Grade: D

A grade indicates earnings quality is high or far above average.

B grade indicates earnings quality is good and/or above average.

C grade indicates earnings quality is acceptable or average.

D grade indicates earnings quality is poor and requires thoughtful due diligence.

F grade indicates the quality of the earnings is poor or far below average requiring serious due diligence.

Earnings Report: 12/31/24

AAAMP Portfolios Position Disclosures:
Treasure Trove Dividend (TTD) – None
Global Dividend Value (GDV) – None
Dividend Growth & Income (DGI) – None
Global Value (GV) – None
Global Value Aggressive (GVA) – None
Global Conservative Income (GCI) – None 
Global High Income (GHI) – None

Description

Sector: Technology
Industry: Semiconductors

Company Overview:
Intel (INTC) is a global leader in semiconductor manufacturing, designing and producing microprocessors, memory chips, and other critical components for computing devices, data centers, and Internet of Things (IoT) applications. The company’s processors are widely used in personal computers, servers, and mobile devices, and Intel is investing heavily in new technologies like artificial intelligence (AI) and autonomous vehicles.

Company Strengths:
Intel has a dominant position in the global semiconductor market, particularly in microprocessors, and its technology is integral to many industries, from consumer electronics to cloud computing. The company’s strong brand, extensive patent portfolio, and robust R&D capabilities enable it to stay competitive in an increasingly tech-driven world. Its established relationships with major OEMs and consistent cash flow provide financial stability.

Company Challenges:
Intel faces intense competition from companies like AMD and Nvidia in the semiconductor space, particularly in processors and graphics chips. The company has struggled with manufacturing delays, which have allowed competitors to gain market share in key segments. Additionally, Intel is investing heavily in new technologies and fabs to maintain its leadership, which requires substantial capital and time. The semiconductor industry’s cyclical nature and supply chain disruptions also present ongoing risks.

Disclaimer:
While Arbor Investment Planner has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of third-party information presented herein. The sole purpose of this analysis is information. Nothing presented herein is, or is intended to constitute investment advice. Consult your financial advisor before making investment decisions.