Intel 2012 2Q financial analysis

Intel 2012 2Q results are positive, company is back to growth track after past few quarters of decrease. Revenue is up both if compared with 2011 2Q and 2012 1Q by

Companies main sales goes to Assia-Pacific region. Since this region will continue to show largest growth that is a good news. Compared to previous year sales in Assia-Pacific is up. Sales are down in Americas, so company is losing at this market. Surprisingly sales in Europe are also up dispute recession in EU.

Main 2/3 of companies revenue and profit comes from PC area, which is up both in revenue and profit.

According to http://www.cpubenchmark.net Intel share in CPU market remains ~80% which is a good thing as company continues to hold on to its main market leader position and even growing it. In general companies results are positive.

Companies Equity level remains strong and is up a little bit to 67%. Equity has finally showed stable increase. Previously it has decreased due to quite aggressive share repurchase spending in Y2011 in total 12,3 bn.$. Not in 2012 1 half year these spending are much more balance and only reach 1,2 bn.$ Dividend payment is 2,1 bn.$/half-year. In total its 3,3 bn.$ or 36% from earned 9,2 bn.$ in half-year which is good level. Equity level of ~80% was quite strong, so its decrease in order to increase earning per share is quite responsible. Good thing it did not continued.

Other companies ratios are also good. Liquidity ratio is over 2,5. Cash and investments holds ~9 bn.$ which is ~1/8 of total companies asset. Inventory and account receivables turnover is around 30 days which is good. Companies investments into long term property (equipments, plants ect.) is 2-3 bn.$/quarter which is good because this will bring profit in the future. In general companies balance structure is strong.

Share value:

Equity / share	48,8 bn.$	5,013 bn.	9,7 $/sh.
Market value	26,2 $	+16,5$	4,6 years
Year Net income before Depreciation	18,1 bn.$	+3,6$/sh.	13,7%

Companies share basic value has decreased to ~9,7$ (Δ+3%/9,4$ compared with Q1). Current market price is ~26$  (Δ-7%/28$) which shows that market is paying 16,5$ more or 4,6 years (5,1 years) of Net income before Depreciation earnings which is 18,1 bn.$ (Δ+1%/17,9$). Companies shares market evaluation is quite good. Share profitability (Share market price/Net income before Depreciation) is 13,7% (12,8%) which is quite good.

Company pays 0,225$/share/quarter dividend or ~3,4% (3,2%) dividend yield which is good, with dividend payout ratio ~25% which is also a good level. Company has increased its dividend payments up from 0,21$ to 0,225$ or by +8% compared to last year. Companies cash flow management can be considered as well balanced. In general share evaluation and profitability is quite good and has improved since last review due to decrease of share price.

Analysis source: Intel 2012 2Q financial results

Previous analysis: Intel 2012 1Q financial analysis

 

Did you like this article?

Share it with your friends.