Jun 032012
 

Intel Corporation (INTC) – Strong Stable Growth like Always

A company with steady and strong profit levels no matter what the economy. Their reputation and business model has a higher chance of having predictable earnings for all investors out there. A P/E of 10.65 with dividend yields of 3.34 makes Intel one of the most stable investment choices. There are others that might be a better option but you could definitely count on this one to generate steady returns year after year with little to fear from sudden changes in business climate.

 
Although it’s true that the company is constantly making its own products obsolete, it is by so doing that it makes itself one of the best choices for a technology stock. Our world will always be using computers in one form or another and they are the leader in making one of its most important parts no matter what brand you intend to buy in the market.

 

Year
2011 2010 2009 2008
Net Income 12942 11464 4369 5292
Asset 71119 63186 53095 50472
ROA 18.20% 18.14% 8.23% 10.49%
Year
2011 2010 2009 2008
Current Assets 25872 31611 21157 19871
Current Liabilities 12028 9327 7591 7818
Current Ratio 2.15 3.39 2.79 2.54

 

Their return on assets is somewhat decent only but nevertheless it is already impressive considering how competitive their industry is. The current ratio just shows how prudent and safe the company is compared to the potential fiasco that Morgan could be with their over leveraged positions in their investment divisions. Intel is more than capable of paying off their debts with the current ratios you can see above.

 

Year
2011 2010 2009 2008
Total Debt 7331 2115 2221 1287
Equity 45911 49430 41704 39546
Debt/Equity Ratio 0.16 0.04 0.05 0.03

 

The same goes with their total debt despite their huge needs for capital constantly. Intel has always been prudent and fiscally conservative in keeping their debt levels within manageable levels. It is amazing to see that the company has managed to double their income from the 2008 levels with only a 16% debt level compared to their equity.

It just shows how they are very strong in their fundamentals. The debt level they are incurring are nothing more than just added oil to add leverage in their operations but never at a level that it starts to be a burden to their capacity to pay. It looks more like a convenience the way they incur debts which is all good for any investors.