INTC

We rate INTEL CORP (INTC) as a Hold with a composite score of 58.9/100 at a current price of $45.98. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.

The rating is primarily driven by strength in momentum (81th percentile) and value (63th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (39th percentile) and stability (43th percentile) tempers our overall conviction. We assign a No Moat rating (38/100), High uncertainty, and Poor capital allocation.

Key items to watch: the path to profitability. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

INTEL CORP holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 58.9/100 places it at rank #798 in our full 7,333-stock universe. With a $172.7B market capitalization, INTEL CORP operates at meaningful scale within the Manufacturing sector, providing competitive advantages in distribution, procurement, and customer reach.

The outlook is moderately positive, with revenue expanding at 6% and favorable momentum (81th percentile) reflecting constructive market sentiment. The business shows steady execution, though the growth rate is below the levels typically associated with high-conviction growth stories. Momentum confirmation provides support for the current price level.

The margin cascade tells an important story: gross margins of 29% (-13.1pp vs sector) narrow to operating margins of -23% (-23.9pp vs sector) and net margins of -31.8%, yielding a gross-to-net conversion rate of -108%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.

At a current price of $45.98, INTEL CORP is trading near fair value based on current fundamentals. Our value factor score of 63/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.

The stock currently trades at a P/E of 9.1x (a 59% discount to the sector median of 22.3x), EV/EBITDA of 5.3x (discounted to peers), P/B of 1.7x, P/S of 4.2x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.

We assign a High uncertainty rating to INTEL CORP. Key risk factors include elevated market sensitivity (beta of 1.50), current negative profitability (net margin -31.8%). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.

Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.50); current negative profitability (net margin -31.8%). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 43th percentile and quality factor at the 53th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: large-cap scale ($172.7B) provides resilience. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.

We rate INTEL CORP's capital allocation as Poor. Key concerns include low returns on equity (-13.2%), negative profitability, weak asset returns (ROA -7.9%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — INTEL CORP significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.

Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.

In summary, INTEL CORP receives a Hold rating with a composite score of 58.9/100 (rank #798 of 7,333). Our quantitative framework assigns a No Moat (38/100, trend: stable), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 56/100.

Our analysis supports a neutral stance on INTEL CORP. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.