Intel’s Debt Analysis for 2017



Intel’s debt situation

Intel (INTC) has short-term debt of ~$5.1 billion and long-term debt of ~$20.7 billion, which put its total debt at ~$25.8 billion. Considering that it has total capital of ~$92.6 billion, its total debt-to-total capital ratio is 28%.

Peer companies Cypress Semiconductor (CY), Broadcom (AVGO), NVIDIA Corporation (NVDA), and Micron Technology (MU) have total debt of ~$1.2 billion, ~$13.6 billion, ~$2.2 billion, and ~$12.4 billion, respectively.

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Intel has debt-to-equity, debt-to-assets, and debt-to-EBITDA ratios of 38.5x, 0.22x, and 1.1x, respectively. Another important ratio—EBIT on interest—measures how easily a company can pay interest on outstanding debt, also known as its interest coverage ratio. Intel’s interest coverage ratio stands at ~95.9x. The company’s debt-to-enterprise value is 15%.

Earnings and sales

Intel reported EPS (earnings per share) of ~$2.20, while its EPS for the current quarter is forecast to be ~$2.90.

Intel’s fiscal 2016 EPS came on total sales of ~$60.5 billion, which grew 7% annually. Sales for this year are expected to increase ~$60.2 billion to ~$61.7 billion in 2018.

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Inside Intel’s price metrics

With a book value of ~$14.20 per share, Intel is trading at a price-to-book value of 2.5x. The stock’s estimated book value is ~$14.90 per share.

Intel’s price-to-sales ratio is 2.8x, and its estimated price-to-sales ratio is 2.8x.

A look at Intel’s EBITDA numbers

Intel’s EBITDA[1. earnings before interest, tax, depreciation, and amortization] fell 7% to $23.5 billion in 2016. Analysts expect the company to post EBITDA of $24.7 billion in 2017.

Intel stock has a price-to-EBITDA ratio of 7.2x.


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