INTC

Financial health: Weak3.9/10

3 strengths, 5 concerns. Weakest points: net debt vs cash flow, return on equity, net margin and 2 more.

• Debt to equity: 0.41 (Strong, benchmark < 0.5) — Debt of 0.41x equity is conservative against the 0.5x benchmark. It has been broadly flat over the last 4 years.
• Net debt vs cash flow: — (Concern, benchmark < 4 years) — Carries $9.2B of net debt while free cash flow is negative, so the debt is not being repaid from the business.
• Current ratio: 2.02 (Strong, benchmark > 1.5) — Short-term assets cover 2.02x short-term liabilities, against Graham's 1.5x floor. It has improved over the last 4 years.
• Return on equity: -0.2% (Concern, benchmark > 15%) — Earns -0.2% on shareholder equity, well short of the > 15% mark.
• Gross margin: 34.8% (Watch, benchmark > 40%) — Keeps 34.8% of revenue after the direct cost of sales, short of the > 40% mark.
• Net margin: -0.5% (Concern, benchmark > 10%) — Turns -0.5% of revenue into profit, well short of the > 10% mark.
• Free cash flow: -$4.9B (Concern, benchmark positive) — Burned $4.9B of cash after capital spending, so operations did not fund themselves. It has improved over the last 4 years.
• Revenue growth: -0.5% (Concern, benchmark > 10%) — Revenue changed -0.5% year on year, well short of the > 10% mark.
• Earnings growth: 98.6% (Strong, benchmark > 10%) — Earnings changed 98.6% year on year, comfortably past the > 10% mark.