Intel Corp (INTC)

[Tushar Patel]

I too wish the valuation for INTC would be better. However, when I look at the financial results over the last 10 years, it is hard to argue that Intel has been a very successful growth company over that period. Here are revenues and earnings growth over 10 years for INTC and for comparision, 2 "staid" companies (GE and Proctor and Gamble).

 
                         INTC    GE      PG 
 Rev 10 yrs ago          26273   99820   37154 
 Rev last yr             38334   169710  76476 
 Change over 10 years    45.91%  70.02%  105.84% 
      
 Net income 10 yrs ago   6068    9296    3780 
 Net income last year    6976    22468   10340 
 Change over 10 years    14.96%  141.70% 173.54% 
      
 Market cap              130.50  326.18  206.72 
 P/E                     19.75   15.11   20.32 
 

Intel management should set clear financial growth goals for itself consistent with being a growth company. Failing to meet those, it should seriously think about running the company like a cyclical company. Otellini was asked a question along these lines at the analyst meeting. His response was that he spends less than an hour a year thinking about running Intel like that.