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The Company is a global designer and manufacturer of high performance analog integrated circuits.
Intersil Corporation designs, develops, manufactures, and markets analog, mixed-signal, and power management integrated circuits (ICs) for applications in the industrial and infrastructure, personal computing, and consumer electronics markets. They are a 1.41B company with only 1% insider ownership. Normally, I would like to see a company with more inside ownership, but it is what it is. They trade more than 6M USD every day so they have the liquidity that I need. Like, I trade that much. It is just that typically, I like to invest in a company that trades at least 1M USD daily. This company does have a negative eps of -0.13/sh which is not good. But I'm hoping they can turn this around. They have a Dividend Rate of 0.48/sh which yields 4.38% annually. They do have negative income and their sales growth is negative, but they have no debt.Income StatementThey had great growth from 2009 to 2011, it was 2012 where sales dropped. This has caused the price of the stock to drop, naturally, but I believe it is at a low that it will turn around. The first two quarters of 2013 show that this company is starting to turn around. They did have a large 'Special Income/Charges' of 16.8M which needs to be researched. This put the first quarter Operating Income into the red. But, it apparently wasn't reoccurring as it didn't appear in the 2nd Q of 2013. Balance SheetAgain, 2012 seemed to be the bad year. With a drop of sales, their total assets fell and that means a loss of equity for the shareholders. There were some LT Debt and Other non-current liabilities that they paid off in 2010 and 2011, which they didn't need to pay for 2012, but it wasn't enough to offset the loss of income for that year. 2013 Q1 and Q2 show signs of turning around. Sales are down, but not by that much. Liabilities have been kept in check as well as all debt management. The Total Liabilities seems to be at least holding steadily. Cash FlowWell, it was hardest hit in 2012. Without sales coming in, it must be difficult to keep operations moving. They appear to keep in in control by managing their Operating Activities, but this alone will not turn the company around. But it was good that they paid off any debt when they did. It would be difficult to do that now. In 2013 Q1 and 2013 Q2 they have managed to keep the cash coming in at about the same pace that it is going out. So in these last two quarters there isn't much change. They are trying to slowly build it back up, which they need to do, but until sales kick in it will just enough to keep the boat afloat.Earnings EstimatesThe street believes that this company will turn around in the next two quarters. From earnings estimates of 0.02/sh 90 days ago to 0.13/sh in the last 30 days, most of the analysts feel that they will make a profit in the next quarters. This is probably the only real reason I am considering this company. A down and out dowager stock on the return. They have also raised expected annual earnings from -0.01/sh for 2013 to 0.38/sh and for 2014 from 0.19/sh to 0.56/sh. I know, historically, this stock doesn't look good, but I'm willing to take that chance.So, I would buy in at about 11/sh or lower. If it drops to 9/sh then I would have to rethink it and figure if that is even a better price. I'm not sure what price I would sell it at. I guess if this stock could make 18% per year even with the dividend of 4.38% then I would put it up for sale.
Short. Revs down sequentially past couple years. Operating losses past 3 out of 4 quarters. Stock has deservedly underperformed and should continue to.
Power chips of the sort Intersil makes are really critical to current and future generations of mobile devices. It's not necessarily sexy tech; it's just important. The company's valuation is low, probably because of PC market exposure. But the dividend is excellent and the prospects are good going forward.
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Currently tradiing near it's 52 week low the company is set for a moderate recovery that should beat the market. It is also paying a good dividend.
ironbob had the right idea but the timing was wrong. Let's see if my timing is better, plus a dividend. Analog is not dead in the digital age, it compliments it.
great financials, rising revenues, an audited backtax expense of 81 million was paid this quarter leading to a quarterly loss. Revenues increased, and margins increased with great ratios to cover the very low debt load they have. Income tax expense will not be applied next quarter and this will outperform the market near the 52-week low and can pick up and hold during increased revenue growth and next quarters posted increases
Intersil has a leading edge in developing new technology geared toward popular electronic devices or trends.
I like what other CAPS players have said about this company and their products. Furthermore, I like the look of their balance sheet with ev/sv of 1.15 (< 2 is a good value. < 1 and the company is priced less than the scrap value of the company). Even better, the analysts expect pretty nice earnings growth in the coming few years. PEG is 0.92. which means that Mr. Market hasn't completely priced the analysts expectations into the share price. Stock prices should rise into the high 50s in the next five years. A nice double bagger with 20% annualized gains.
Over sold. The market for analog IC's is strong and will continue to be as they manager power in cell phone and many other battery operated devices.
a turnaround analog/mix signal semiconductor maker set to outdo the market: If semiconductors grow 8% as per SIA in 2008 Intersil can grow 15-25% easily as they dont suffer the price erosion processors/memories and commodities do. The stock even more now at 16x fwd PE.Its markets: Computers should be up even in Q4, HiRel (space products) too due to scheduling and new space programs.Long term they are geared up to outperform: Product portfolio is enhanced (acquisitions), David Bell, former President of LLTC hiring more R&D. He made LLTC what it became as GM of Power products, about 65% of their business from 1995 to 2004.Cash flow, profitability, GM all seem solid.
Lots of key design wins position this company ahead of most analog chip companies. The only possible issue is deliverability. But they seem to be handling it better than the rest of the semi market.
It's already ahead of the curve. Needs a pull back. Big players are shorting the stock with long call hedge.
prime target for a private takeover
Very balanced analog segment exposure. They've done a great job of keeping margins on high-end relative to analog peers (high 50%). Has been steadily taking market share and outperforming peers for about 10 quarters. Seasoned management and employee base (former GE/Harris entity). No debt, good management of cash including a recently announced share buyback (10%). Kicker: Identified as a prime target for a private takeover. If somebody does buys it, the price should be at a good premium due to the excellent cash/balance sheet.
They make the best wireless chipset around, and with 802.11n very nearly standard, ethernet cables will be collector's relics along with vhs tapes and atari joysicks.
Seems undervalued with good growth and sound financials. Stock buyback should increase share value.
This company has excellent growth potential and will fly out of the gates.
The sector looks cheap.
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