INTC - Embedded Expectations Analysis - 2018 04 17
Intel Corporation (INTC:USA) is currently trading above recent average valuations relative to UAFRS-based (Uniform) Earnings and Assets, with a 16.8x Uniform P/E and a 2.0x Uniform P/B. At these levels, the market is expecting Uniform ROA to decline from 9%-10% levels to 8% levels through 2022, as the firm sees profitability continue at cycle lowsSpecifically, the market appears to expect an extended cyclical low in the semiconductor industry, and seems to be pessimistic regarding Intel's prospects going forward, particularly with their large clients such as Apple. Moreover, the market also appears to be expecting further declines in the PC industry, offsetting INTC's growth in cloud computing
Intel is a data-centric company. The company's operating segments are: Data Center Group, which develops platforms for compute, storage, and network functions; Internet of Things Group, which facilitates its customers creating, storing, and processing data; Mobileye, which provides assistance and automation solutions; Non-Volatile Memory Solutions Group, which provides memory and storage products based on Intel? Optane? technology and Intel? 3D NAND technology; Programmable Solutions Group, which provides programmable semiconductors; and Client Computing Group, which connects people to data, allowing each person to focus, create, and engage in ways that unlock their individual potential.
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