Intels Recent Acquisition May Be a Great for Investor Return

Intel’s recent news consists of them purchasing the company Mobileye, which provides technology in driverless vehicles. Certainly this is a hot topic in the tech industry as companies race to be the first one to perfect a driverless car. Intel has a lot to offer as they manufacture several components for computers for individuals, as well as corporations and businesses. Having a tech company in your portfolio can certainly help with diversification, but only you can determine if it will ultimately be a good fit. Now, let us take a look at the most recent numbers.

Published over a year ago
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Reviewed by Gabriel Shpitalnik

These numbers can be found on the company’s website of their latest 8-K report containing the numbers. The compare reports record full-year revenue of $59.4 billion and record quarterly revenue of $16.4 billion for fourth quarter 2016. Record annual cash flow from operations was reported at $21.8 billion and solid earnings were reported with GAPP net income of $10.3 billion. Current and potential investors should look at these numbers and see that growth is still there in the tech industry. Not only that, but the recent news they are going to acquire another company.

Taking a look at the chart using the monthly time frame, we can see that price is slowly trending upward, which is a good sign because there are no parabolic moves to worry about. With the new purchase news, I would certainly watch the chart and fundamental data closely to see where the large money players are moving. Also, watch to ensure there are no price gaps as that could be volatility your portfolio can’t afford. All in all, the chart looks healthy and nothing stands out as a red flag.

Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Intel income statement, its balance sheet, and the statement of cash flows. Potential Intel investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Intel investors may use each financial statement separately, they are all related. The changes in Intel's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Intel's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Intel fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Intel performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Intel shares is the value that is considered the true value of the share. If the intrinsic value of Intel is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Intel. Please read more on our fundamental analysis page.

How effective is Intel in utilizing its assets?

Intel reports assets on its Balance Sheet. It represents the amount of Intel resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Intel aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Semiconductors & Semiconductor Equipment space. To get a better handle on how balance sheet or income statements item affect Intel volatility, please check the breakdown of all its fundamentals.

Are Intel Earnings Expected to grow?

The future earnings power of Intel involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Intel factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Intel stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Intel expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Intel earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Intel dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Intel one year expected dividend income is about USD0.65 per share.
At present, Intel's Dividend Payout Ratio is projected to increase slightly based on the last few years of reporting.
Last ReportedProjected for Next Year
Dividends Paid3.1 B2.9 B
Dividend Yield 0.05  0.05 
Dividend Payout Ratio 0.67  0.71 
Dividend Paid And Capex Coverage Ratio(0.93)(0.98)
Investing in dividend-paying stocks, such as Intel is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Intel must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Intel. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

Intel Gross Profit

Intel Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Intel previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Intel Gross Profit growth over the last 10 years. Please check Intel's gross profit and other fundamental indicators for more details.

Detailed Perspective On Intel

Risks

Being in the tech industry there is a large amount of risk. For a full list, take a look at the latest 10-K report, but for now, here are a couple to keep in mid while you’re researching. First, be sure to understand that the company has to continue innovating to stay ahead of their competition because technology is always evolving and changing. Secondly, brand image and product quality is just as important as innovation because if people being to think the company’s products are of low quality, they will no long purchase their products.

Conclusion

Intel is in many different market places and will continue to be as long as they maintain their current image. Be sure to compare this company with the others in the industry because this company may not provide as much value as another. If you still have questions after you complete your research, be sure to consult an investing professional as they can help point you in the right direction. Intel is a solid company and could be a great addition to your portfolio.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Intel. Please refer to our Terms of Use for any information regarding our disclosure principles.

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