Intel Corp CAPEX dropped on 27.5% in 2015 and Revenue decreased slightly on 0.92%
14/01/2016 • About Intel Corp (
$4335) • By InTwits
Intel Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Intel Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.4%. At the same time it's a lot of higher than industry average of 13.4%.
- CAPEX is quite volatile: 12,347 in 2015, 12,873 in 2014, 6,930 in 2013, 2,087 in 2012, 2,998 in 2011
- The company has highly profitable business model: ROIC is at 17.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Intel Corp ($4335) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 53,999 | 53,341 | 52,708 | 55,870 | 55,355 | -0.9% |
| Gross Profit | 33,757 | 33,151 | 31,521 | 35,609 | 34,679 | -2.6% |
| SG&A | 7,670 | 8,057 | 8,088 | 8,136 | 7,930 | -2.5% |
| EBITDA | 23,541 | 22,160 | 20,323 | 23,896 | 22,713 | -5.0% |
| Net Income | 12,942 | 11,005 | 9,620 | 11,704 | 11,420 | -2.4% |
Balance Sheet
|
|---|
| Cash | 5,065 | 8,478 | 5,674 | 2,561 | 15,308 | 497.7% |
| Short Term Debt | 247 | 312 | 281 | 1,596 | 2,634 | 65.0% |
| Long Term Debt | 7,084 | 13,136 | 13,165 | 12,059 | 20,036 | 66.1% |
Cash flow
|
|---|
| Capex | 10,764 | 11,027 | 10,711 | 10,105 | 7,326 | -27.5% |
Ratios
|
|---|
| Revenue growth | 23.8% | -1.2% | -1.2% | 6.0% | -0.9% | |
| EBITDA growth | 16.4% | -5.9% | -8.3% | 17.6% | -5.0% | |
| Gross Margin | 62.5% | 62.1% | 59.8% | 63.7% | 62.6% | -1.1% |
| EBITDA Margin | 43.6% | 41.5% | 38.6% | 42.8% | 41.0% | -1.7% |
| Net Income Margin | 24.0% | 20.6% | 18.3% | 20.9% | 20.6% | -0.3% |
| SG&A, % of revenue | 14.2% | 15.1% | 15.3% | 14.6% | 14.3% | -0.2% |
| CAPEX, % of revenue | 19.9% | 20.7% | 20.3% | 18.1% | 13.2% | -4.9% |
| ROIC | 32.4% | 23.7% | 17.1% | 20.6% | 17.7% | -2.9% |
| ROE | 27.1% | 22.7% | 17.6% | 20.3% | 19.2% | -1.1% |
| Net Debt/EBITDA | 0.1x | 0.2x | 0.4x | 0.5x | 0.3x | -0.1x |
Revenue and profitability
The company's Revenue decreased slightly on 0.92% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.6 pp from 7.8% to 11.5% in 2015.
Gross Margin decreased slightly on 1.1 pp from 63.7% to 62.6% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Intel Corp's CAPEX/Revenue was 13.2% in FY2015. The company showed decline in CAPEX/Revenue of 7.4 pp from 20.7% in FY2012 to 13.2% in FY2015. It's average level of CAPEX/Revenue for the last three years was 17.2%.
Return on investment
The company operates at good ROIC (17.70%) and ROE (19.23%). ROIC decreased on 2.9 pp from 20.6% to 17.7% in FY2015. ROE decreased slightly on 1.1 pp from 20.3% to 19.2% in FY2015.
Leverage (Debt)
Debt level is 0.3x Net Debt / EBITDA and 1.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from 0.5x to 0.3x in FY2015. Debt jumped on 66.0% in FY2015 while cash surged on 498% in FY2015.
Management team
Brian M Krzanich is a the company's CEO. Brian M Krzanich has spent 5 years at the company.
Appendix 1: Peers in Semiconductors
Below you can find Intel Corp benchmarking vs. other companies in Semiconductors industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honbridge Holdings Ltd ($8137) | 3,428.4% | -76.4% | -97.5% | 608.9% | |
| Shunfeng International Clean Energy Ltd ($1165) | 216.5% | -46.3% | 44.4% | 275.6% | |
| Phoenitron Holdings Ltd ($8066) | -8.8% | -7.2% | 4.0% | 243.8% | |
| Hanergy Thin Film Power Group Ltd ($566) | -15.1% | 7.5% | 19.1% | 192.8% | |
| China Jinhai International Group Ltd ($139) | | | | 140.3% | -81.9% |
| |
|---|
| Median (20 companies) | -1.6% | -15.7% | 4.0% | 11.1% | -32.8% |
|---|
| Intel Corp ($4335) | | -1.2% | -1.2% | 6.0% | -0.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Heng Xin China Holdings Ltd ($8046) | 46.3% | 42.1% | 57.6% | 75.0% | |
| China Jinhai International Group Ltd ($139) | -92.8% | | -7.8% | 73.3% | -69.1% |
| PacMOS Technologies Holdings Ltd ($1010) | 68.1% | 68.8% | 65.7% | 65.7% | |
| Hanergy Thin Film Power Group Ltd ($566) | 62.8% | 71.4% | 80.3% | 57.3% | |
| Jun Yang Solar Power Investments Ltd ($397) | -2.4% | 87.3% | 79.3% | 53.8% | |
| |
|---|
| Median (21 companies) | 17.4% | 22.8% | 25.2% | 29.2% | -2.4% |
|---|
| Intel Corp ($4335) | 62.5% | 62.1% | 59.8% | 63.7% | 62.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Ruifeng Renewable Energy Ltd ($527) | 13.4% | 9.1% | 37.2% | 88.0% | |
| Hanergy Thin Film Power Group Ltd ($566) | 46.0% | 66.0% | 73.9% | 43.7% | |
| Shunfeng International Clean Energy Ltd ($1165) | 5.9% | -11.8% | 9.5% | 40.5% | |
| Semiconductor Manufacturing International Corp ($981) | 26.9% | 34.3% | 35.5% | 34.5% | |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 22.4% | 26.5% | 23.9% | 25.4% | |
| |
|---|
| Median (21 companies) | 10.2% | 5.7% | 5.9% | -3.4% | -6.0% |
|---|
| Intel Corp ($4335) | 43.6% | 41.5% | 38.6% | 42.8% | 41.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jun Yang Solar Power Investments Ltd ($397) | 390.5% | 671.1% | 25.9% | 78.9% | |
| Han Tang International Holdings Ltd ($1187) | 1.8% | | | 55.2% | |
| Semiconductor Manufacturing International Corp ($981) | 70.6% | 23.5% | 35.1% | 33.2% | |
| Comtec Solar Systems Group Ltd ($712) | 22.2% | | 30.2% | 18.7% | |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 8.3% | 4.7% | 11.0% | 14.2% | |
| |
|---|
| Median (21 companies) | 8.3% | 4.3% | 4.0% | 4.8% | 2.2% |
|---|
| Intel Corp ($4335) | 19.9% | 20.7% | 20.3% | 18.1% | 13.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ASM Pacific Technology Ltd ($522) | 52.1% | 12.3% | 9.2% | 21.9% | |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 22.2% | 25.5% | 22.7% | 21.1% | |
| Hanergy Thin Film Power Group Ltd ($566) | 9.3% | 14.1% | 15.1% | 19.3% | |
| Shunfeng International Clean Energy Ltd ($1165) | 5.9% | -13.0% | 1.5% | 17.4% | |
| Applied Materials Inc ($4336) | 25.6% | 4.0% | 4.6% | 15.9% | 15.2% |
| |
|---|
| Median (21 companies) | 1.7% | -2.3% | -0.7% | -1.3% | -13.7% |
|---|
| Intel Corp ($4335) | 32.4% | 23.7% | 17.1% | 20.6% | 17.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Ruifeng Renewable Energy Ltd ($527) | 4.0x | 16.4x | 6.9x | 4.9x | |
| Solargiga Energy Holdings Ltd ($757) | 5.9x | | 13.8x | 4.4x | |
| Shunfeng International Clean Energy Ltd ($1165) | 8.2x | | 25.8x | 3.4x | |
| Phoenitron Holdings Ltd ($8066) | -1.2x | -0.8x | | 3.2x | |
| Semiconductor Manufacturing International Corp ($981) | 1.9x | 1.3x | 1.0x | 1.0x | |
| |
|---|
| Median (10 companies) | -0.4x | 0.0x | 1.0x | 0.5x | -0.1x |
|---|
| Intel Corp ($4335) | 0.1x | 0.2x | 0.4x | 0.5x | 0.3x |
