Comparison to Industry Alias Partners report that ” the global semiconductor industry has struggled in the years following the 2010 industry-wide rebound” and ” companies throughout the industry continue to grapple with several challenges”. Intel’s 3-year average revenue growth of 6. 5 is well above the industry average of 3. 7, showing that while the overall revenues are weak, Intel is still a leader in the industry. Alias Partners also state that some of the problems companies in the industry are facing are ” intense competition, pricing pressure, and short and costly product life cycles”.
These factors impact net revenues, and while Intel’s 3-year net income growth has decreased -5. 7, it’s a smaller decrease than the industry average of -7. 3. Intel’s YE 13 Debt/Equity ratio of 0. 2 is below the industry average of 0. 3, which means that Intel’s assets are financed with less debt then it’s competitors. Extending this analysis further, this also means that Intel’s shareholders have more of a claim on the firm’s assets then investors in Intel’s competitors. A soft spot for Intel is it’s PIE ratio.
The YE 13 PIE ratio was 13. 8 vs.. The industry average of 19. 5. As of 26 September 2014, the trailing twelve-month (TM) PIE ratio gap has decreased but Intel continues to lag with a TM PIE ratio of 17. 1 vs.. The industry average of 22. 7. This is meaningful because investors seem to have renewed confidence in Intel’s future earnings vs.. Their competitors. Conclusion In conclusion, while the industry is still recovering from 2010, Intel’s management has managed to keep the company’s financial health in good standing.
