Should you buy Intel stock?

See our Substack for more: https://www.overlookedalpha.com Intel stock analysis. Two minute analysis INTC stock.. Over the last decade, Intel had steady growth of revenue of roughly 5% per year. But revenue dropped 20% in 2022 lead by poor sales of PC and server chips and higher competition. Every quarter of 2022 brought a decline in revenue versus the same quarter in 2021: Q1: -6.7% Q2: -22.0% Q3: -20.1% Q4: -31.6% This is also reflected in the share price which is down roughly 50%. Intel has responded to this trouble in 3 main ways. 1. It’s cut its dividend by 66% to just 13 cents. 2. It’s cutting costs. Even the CEO’s salary has been reduced by 25%. 3. It’s reinvesting any excess cash into areas that will lead to the creation of long-term value Making the decision to cut dividends is a tough one, but its necessary when considering the slowdown in growth and the significant debt pile. Gross profit margin reduced from 55% to 43% in 2022 and gross profit dropped to $26,8 billion in vs. $43,8 billion in 2021. If we exclude the restructuring expenses that the company had (as they’re not recurring), there are two main types of expenses that the company incurs: - Research and development – that increased to $17,5 billion in 2022 (vs. $15,2 billion in 2021) - And Marketing, general and administrative – that increased to $7 billion in 2022 (vs. 6,5 billion in 2021) This leads to an operating profit of only $2,3 billion (vs. 22,1 billion in 2021). So what we’re looking at is a decrease in demand for Intel’s products combined with high inflation having an impact on the company’s fixed costs. #stocks #investing #overlookedalpha