Intel Corp CAPEX surged on 31.4% in 2016 and Revenue increased on 7.3%
26/01/2017 • About Intel Corp (
$4335) • By InTwits
Intel Corp reported 2016 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 17.7%. At the same time it's in pair with industry average of 21.1%.
- CAPEX is quite volatile: 9,016 in 2016, 11,441 in 2015, 19,695 in 2014, 25,375 in 2013, 27,560 in 2012
- The company has highly profitable business model: ROIC is at 14.5%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.0x while industry average is 1.0x
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. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 53,341 | 52,708 | 55,870 | 55,355 | 59,387 | 7.3% |
| Gross Profit | 33,151 | 31,521 | 35,609 | 34,679 | 36,191 | 4.4% |
| SG&A | 8,057 | 8,088 | 8,136 | 7,930 | 8,397 | 5.9% |
| EBITDA | 22,160 | 20,323 | 23,896 | 22,713 | 20,664 | -9.0% |
| Net Income | 11,005 | 9,620 | 11,704 | 11,420 | 10,316 | -9.7% |
Balance Sheet
|
|---|
| Cash | 8,478 | 5,674 | 2,561 | 15,308 | 5,560 | -63.7% |
| Short Term Debt | 312 | 281 | 1,596 | 2,634 | 4,634 | 75.9% |
| Long Term Debt | 13,136 | 13,165 | 12,059 | 20,036 | 20,649 | 3.1% |
Cash flow
|
|---|
| Capex | 11,027 | 10,711 | 10,105 | 7,326 | 9,625 | 31.4% |
Ratios
|
|---|
| Revenue growth | -1.2% | -1.2% | 6.0% | -0.9% | 7.3% | |
| EBITDA growth | -5.9% | -8.3% | 17.6% | -5.0% | -9.0% | |
| Gross Margin | 62.1% | 59.8% | 63.7% | 62.6% | 60.9% | -1.7% |
| EBITDA Margin | 41.5% | 38.6% | 42.8% | 41.0% | 34.8% | -6.2% |
| Net Income Margin | 20.6% | 18.3% | 20.9% | 20.6% | 17.4% | -3.3% |
| SG&A, % of revenue | 15.1% | 15.3% | 14.6% | 14.3% | 14.1% | -0.2% |
| CAPEX, % of revenue | 20.7% | 20.3% | 18.1% | 13.2% | 16.2% | 3.0% |
| ROIC | 23.7% | 17.1% | 20.6% | 17.7% | 14.5% | -3.2% |
| ROE | 22.7% | 17.6% | 20.3% | 19.2% | 16.0% | -3.2% |
| Net Debt/EBITDA | 0.2x | 0.4x | 0.5x | 0.3x | 1.0x | 0.6x |
Revenue and profitability
Intel Corp's Revenue increased on 7.3%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 8.2 pp from 11.9% to 20.1% in 2016.
Gross Margin decreased slightly on 1.7 pp from 62.6% to 60.9% in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign decreased on 3.3 pp from 20.6% to 17.4% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 16.2%. The company's CAPEX/Revenue decreased on 4.1 pp from 20.3% in 2013 to 16.2% in 2016. It's average CAPEX/Revenue for the last three years was 15.8%.
Return on investment
The company operates at good ROIC (14.48%) and ROE (15.98%). ROIC decreased on 3.2 pp from 17.7% to 14.5% in 2016. ROE decreased on 3.2 pp from 19.2% to 16.0% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.0x and Debt / EBITDA is 1.2x. Net Debt / EBITDA surged on 0.6x from 0.3x to 1.0x in 2016. Debt surged on 11.5% while cash dropped on 63.7%.
Management team
Intel Corp's CEO is Brian M Krzanich. Brian M Krzanich has 5 years tenure at the company. Intel Corp's CFO Robert H Swan "Bob" has spent 2 years at the company.
Appendix 1: Peers in Semiconductors
Below we provide Intel Corp benchmarking against other companies in Semiconductors industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Phoenitron Holdings Ltd ($8066) | -7.2% | 4.0% | 243.8% | 405.3% | |
| Jun Yang Solar Power Investments Ltd ($397) | -81.0% | 256.8% | 1.1% | 168.9% | |
| Honbridge Holdings Ltd ($8137) | -76.4% | -97.5% | 608.9% | 57.0% | |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 15.5% | 16.0% | 3.3% | 23.2% | |
| Shunfeng International Clean Energy Ltd ($1165) | -46.3% | 44.4% | 275.6% | 22.4% | |
| |
|---|
| Median (22 companies) | -11.2% | 3.8% | 11.7% | 0.5% | -12.2% |
|---|
| Intel Corp ($4335) | | -1.2% | 6.0% | -0.9% | 7.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jun Yang Solar Power Investments Ltd ($397) | 87.3% | 79.3% | 53.8% | 73.8% | |
| PacMOS Technologies Holdings Ltd ($1010) | 68.8% | 65.7% | 65.7% | 57.5% | |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 47.7% | 48.7% | 47.5% | 52.9% | |
| Shenzhen Mingwah Aohan High Technology Corp Ltd ($8301) | 26.1% | 26.7% | 16.3% | 52.8% | |
| Hanergy Thin Film Power Group Ltd ($566) | 71.4% | 80.3% | 57.3% | 48.8% | |
| |
|---|
| Median (22 companies) | 22.1% | 23.7% | 29.5% | 31.3% | 23.6% |
|---|
| Intel Corp ($4335) | 62.1% | 59.8% | 63.7% | 62.6% | 60.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Ruifeng Renewable Energy Ltd ($527) | 9.1% | 37.2% | 88.0% | 78.3% | |
| Jun Yang Solar Power Investments Ltd ($397) | -218.5% | -16.7% | -9.9% | 35.0% | |
| Semiconductor Manufacturing International Corp ($981) | 34.3% | 35.5% | 34.5% | 33.3% | |
| Hua Hong Semiconductor Ltd ($1347) | 38.5% | 29.7% | 31.5% | 30.0% | |
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 26.5% | 23.9% | 25.4% | 26.8% | |
| |
|---|
| Median (22 companies) | 7.4% | 6.1% | -0.9% | 3.9% | 10.0% |
|---|
| Intel Corp ($4335) | 41.5% | 38.6% | 42.8% | 41.0% | 34.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Heng Xin China Holdings Ltd ($8046) | 16.1% | 4.1% | 11.9% | 110.8% | |
| Jun Yang Solar Power Investments Ltd ($397) | 671.1% | 25.9% | 78.9% | 104.2% | |
| China Ruifeng Renewable Energy Ltd ($527) | 5.5% | 35.9% | 10.6% | 60.9% | |
| Semiconductor Manufacturing International Corp ($981) | 23.5% | 35.1% | 33.2% | 55.0% | |
| Hanergy Thin Film Power Group Ltd ($566) | 1.3% | 2.8% | 4.8% | 32.0% | |
| |
|---|
| Median (22 companies) | 4.4% | 4.1% | 5.7% | 5.2% | 1.4% |
|---|
| Intel Corp ($4335) | 20.7% | 20.3% | 18.1% | 13.2% | 16.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 25.5% | 22.7% | 21.1% | 20.9% | |
| Applied Materials Inc ($4336) | 4.0% | 4.6% | 15.9% | 15.2% | 19.1% |
| ASM Pacific Technology Ltd ($522) | 12.3% | 9.2% | 21.9% | 13.7% | |
| Hua Hong Semiconductor Ltd ($1347) | 5.3% | 4.8% | 7.8% | 6.7% | |
| Shunfeng International Clean Energy Ltd ($1165) | -13.0% | 1.5% | 17.4% | 5.0% | |
| |
|---|
| Median (22 companies) | -2.2% | -0.4% | -0.5% | -1.1% | -9.5% |
|---|
| Intel Corp ($4335) | 23.7% | 17.1% | 20.6% | 17.7% | 14.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Solargiga Energy Holdings Ltd ($757) | | 13.8x | 4.4x | 9.0x | |
| China Ruifeng Renewable Energy Ltd ($527) | 16.4x | 6.9x | 4.9x | 7.3x | |
| Shunfeng International Clean Energy Ltd ($1165) | | 25.8x | 3.4x | 5.7x | |
| Semiconductor Manufacturing International Corp ($981) | 1.3x | 1.0x | 1.0x | 0.5x | |
| ASM Pacific Technology Ltd ($522) | -0.5x | -0.8x | -0.1x | 0.2x | |
| |
|---|
| Median (11 companies) | 0.2x | 0.6x | -0.1x | -0.1x | -0.0x |
|---|
| Intel Corp ($4335) | 0.2x | 0.4x | 0.5x | 0.3x | 1.0x |
