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Intel (INTC) - Piotroski F-Score Analysis for Year 2023 (Final Score: 3/9)

Get an in-depth Piotroski F-Score analysis for Intel (INTC) in 2023. Assess Intel's financial health and efficiency. Final Score: 3/9.

Knowledge hint:
The Piotroski F-Score is a number between 0 to 9 which reflects the strength of a company's financial position. It is based on 9 criteria involving profitability, liquidity, and leverage. This model helps investors identify stocks that are strong, undervalued investments.
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Short Analysis - Piotroski Score: 3

We're running Intel (INTC) against the Piotroski 9-criteria scoring system to assess profitability, liquidity, and operating efficiency:

Criteria
Company has a positive net income?
1
Company has a positive cash flow?
1
Return on Assets (ROA) are growing?
0
Operating Cashflow are higher than Netincome?
1
Leverage is declining?
0
Current Ratio is growing?
0
Number of shares not diluted?
0
Cross Margin is growing?
0
Asset Turnover Ratio is growing?
0

The Piotroski F-Score for Intel (INTC) is based on assessing profitability, liquidity, and operating efficiency across nine criteria. Intel scores a 3 out of 9, reflecting certain strengths but also several areas of concern. Positive factors include a positive net income, positive cash flow from operations exceeding net income, and sufficient cash flow generation. Negative factors include a decline in return on assets, an increased leverage ratio, a slight drop in current ratio, increased share dilution, a decreased gross margin, and decreased asset turnover ratio.

Insights for Value Investors Seeking Stable Income

Given Intel's current Piotroski F-Score of 3, it shows mixed financial health. While it's good that Intel maintains a positive net income and cash flow, the company has decreased profitability and efficiency compared to past performance and industry peers. Investors might exercise caution, considering both the potential for resilience and the evident risks. It would be wise to monitor Intel's financial developments closely and perhaps seek alternative investments with more robust financial health indicators.

For those who are interested in delving deeper into the specifics, the subsequent section provides a comprehensive exploration of the criteria.

Profitability of Intel (INTC)

Company has a positive net income?

A positive net income indicates profitability, a key metric for assessing financial health and operational efficiency

Historical Net Income of Intel (INTC)

In 2023, Intel's net income stood at $1,689,000,000, marking a positive result. Historically, considering data from the past two decades, Intel's net income has predominantly exhibited substantial figures, peaking at over $21 billion in 2018. The slight figure in 2023 seems anomalous, reflecting perhaps a challenging year; however, maintaining positive net income is still a sign of underlying resilience. Assign 1 point for this criterion. This trend, though weaker compared to historical highs, still demonstrates Intel's ability to remain profitable amidst contrasting conditions.

Company has a positive cash flow?

Cash Flow from Operations (CFO) measures the cash generated or consumed by a company's core business operations. Positive numbers indicate that a company is capable of generating sufficient funds to sustain and grow its operations.

Historical Operating Cash Flow of Intel (INTC)

For the year 2023, Intel's CFO stands at $11.47 billion, which is positive. This is a key indicator of financial health, suggesting that Intel’s core business remains profitable. Reviewing the historical data of the last 20 years shows a fluctuation in CFO, peaking at $35.38 billion in 2020, but having a noticeable drop thereafter. Despite the decline from higher values, the positive CFO in 2023 still aligns with financial stability. Therefore, Intel earns 1 point for this criteria.

Return on Assets (ROA) are growing?

Return on Assets (ROA) measures a company's profitability relative to its total assets. It indicates how efficiently a company uses its assets to generate earnings. A higher ROA means the company is more efficient at converting its investment into profit, making it an important indicator of management's performance. Comparing year-over-year ROA allows investors to assess if the company is improving its efficiency and profitability.

Historical change in Return on Assets (ROA) of Intel (INTC)

In 2022, Intel (INTC) had an ROA of 0.0457, which significantly dropped to 0.009 in 2023. This decrease is stark and signifies a deterioration in Intel's efficiency in generating profits from its assets. Comparing this trend to the industry's median ROA, which hovered around 0.4919 in 2023, indicates an underperformance of Intel not only on a year-over-year basis but also relative to its peers. Furthermore, Intel's Operating Cash Flow in 2023 dropped to $11.47 billion from $15.43 billion in the previous year, supporting this decline in ROA. Thus, for this criterion, Intel scores 0 points.

Operating Cashflow are higher than Netincome?

The criterion examines whether operating cash flow (OCF) is higher than net income. It emphasizes the quality of earnings by showing if a company's profits are backed by actual cash flow.

Historical accruals of Intel (INTC)

As of 2023, Intel's operating cash flow stands at $11,471,000,000, while its net income is $1,689,000,000. Clearly, Intel's OCF is significantly higher than its net income, signaling strong cash flow generation. This is considered a positive indicator as it suggests that Intel's earnings are supported by robust cash flow. Therefore, Intel earns 1 point for this criterion.

Liquidity of Intel (INTC)

Leverage is declining?

Change in Leverage is determined by comparing the degrees of financial leverage over two periods. A decrease indicates less reliance on debt financing.

Historical leverage of Intel (INTC)

For Intel (INTC), leverage increased from 0.2069 in 2022 to 0.2452 in 2023. This increase suggests a higher reliance on debt financing compared to the previous year. While an increasing leverage ratio could point towards greater potential returns when business is good, it also indicates higher financial risk. Over the past 20 years, Intel's leverage has shown variability, with significant changes particularly noticeable from 2014 onwards. Therefore, for this criterion, we assign 0 points as leverage has not decreased but rather increased, highlighting higher financial obligations and associated risk.

Current Ratio is growing?

The Current Ratio, which compares a company’s current assets to its current liabilities, assesses Intel's financial health.

Historical Current Ratio of Intel (INTC)

In 2023, Intel’s Current Ratio decreased slightly to 1.5424 from 1.5676 in 2022, remaining below the industry median of 3.4213. While this indicates a slight decline in liquidity, it’s notable that Intel has broadly maintained its ability to cover short-term liabilities, hinting at prudent working capital management.

Number of shares not diluted?

The change in shares outstanding helps investors understand share dilution.

Historical outstanding shares of Intel (INTC)

In 2023, Intel had 4,190,000,000 outstanding shares compared to 4,108,000,000 in 2022. This increase in outstanding shares is a negative indicator, resulting in 0 points. Over the last two decades, shares have generally decreased from 6,621,000,000 in 2003 to a low of 4,057,000,000 in 2021. However, the trend reversed in 2023, potentially signaling new stock issuance or share-based compensation.

Operating of Intel (INTC)

Cross Margin is growing?

Criterion evaluates the year-over-year change in the gross margin, which is the difference between a company's revenue and cost of goods sold divided by revenue, expressed as a percentage. A rising gross margin indicates improving profitability and operational efficiency.

Historical gross margin of Intel (INTC)

For Intel (INTC), the gross margin has decreased from 0.4261 in 2022 to 0.4004 in 2023. This translates into a decline, indicating 0 points for this criterion. Over the last 20 years, Intel's gross margin has shown significant fluctuations, reaching its peak of 0.6531 in 2010. In contrast, the industry median gross margin has been relatively stable, ranging from 0.401 to 0.4919 in the same period. The current gross margin of Intel is notably below the industry median of 0.4919, which accentuates the challenges the company is facing.

Asset Turnover Ratio is growing?

The asset turnover ratio measures a company's efficiency in using its assets to generate sales revenue. It is important to investors as it indicates how well the company is utilizing its assets.

Historical asset turnover ratio of Intel (INTC)

Comparing the asset turnover ratio for Intel (INTC) between 2022 and 2023, there has been a decrease from 0.3598 in 2022 to 0.2902 in 2023. This negative trend signifies that Intel is becoming less efficient in using its assets to generate revenue. Over the past 20 years, Intel has shown a declining trend in asset turnover ratio, decreasing from a high of 0.805 in 2005 to 0.2902 in 2023. Therefore, we assign a score of 0 for this criterion as the asset turnover has not increased but decreased.


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