TOWER SEMICONDUCTOR LTD (TSEM) Stock Fundamental Analysis
USA - NASDAQ:TSEM - IL0010823792 - Common Stock
91.61 USD
-6.92 (-7.02%)
89.25 USD
-2.36 (-2.58%)
Overall TSEM gets a fundamental rating of 5 out of 10. We evaluated TSEM against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. TSEM has an average financial health and profitability rating. While showing a medium growth rate, TSEM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
TSEM had positive earnings in the past year.
In the past year TSEM had a positive cash flow from operations.
TSEM had positive earnings in each of the past 5 years.
TSEM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TSEM has a Return On Assets of 6.01%. This is in the better half of the industry: TSEM outperforms 72.32% of its industry peers.
TSEM has a Return On Equity of 6.90%. This is in the better half of the industry: TSEM outperforms 66.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.50%, TSEM is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TSEM is below the industry average of 10.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 6.9% | ||
| ROIC | 4.5% |
ROA(3y)11.63%
ROA(5y)9.11%
ROE(3y)14.38%
ROE(5y)11.61%
ROIC(3y)7.43%
ROIC(5y)6.59%
1.3 Margins
TSEM's Profit Margin of 12.92% is fine compared to the rest of the industry. TSEM outperforms 73.21% of its industry peers.
In the last couple of years the Profit Margin of TSEM has grown nicely.
The Operating Margin of TSEM (11.22%) is better than 66.96% of its industry peers.
TSEM's Operating Margin has improved in the last couple of years.
The Gross Margin of TSEM (22.01%) is worse than 81.25% of its industry peers.
TSEM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.22% | ||
| PM (TTM) | 12.92% | ||
| GM | 22.01% |
OM growth 3Y5.29%
OM growth 5Y12.9%
PM growth 3Y13.32%
PM growth 5Y14.69%
GM growth 3Y2.7%
GM growth 5Y4.89%
2. Health
2.1 Basic Checks
TSEM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TSEM has more shares outstanding
Compared to 5 years ago, TSEM has more shares outstanding
Compared to 1 year ago, TSEM has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of TSEM is 4.93, which is a neutral value as it means it would take TSEM, 4.93 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.93, TSEM is in line with its industry, outperforming 57.14% of the companies in the same industry.
A Debt/Equity ratio of 0.05 indicates that TSEM is not too dependend on debt financing.
TSEM's Debt to Equity ratio of 0.05 is fine compared to the rest of the industry. TSEM outperforms 61.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 4.93 | ||
| Altman-Z | N/A |
ROIC/WACC0.41
WACC11%
2.3 Liquidity
A Current Ratio of 6.61 indicates that TSEM has no problem at all paying its short term obligations.
TSEM has a better Current ratio (6.61) than 84.82% of its industry peers.
TSEM has a Quick Ratio of 5.54. This indicates that TSEM is financially healthy and has no problem in meeting its short term obligations.
TSEM has a better Quick ratio (5.54) than 84.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.61 | ||
| Quick Ratio | 5.54 |
3. Growth
3.1 Past
TSEM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.95%.
TSEM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.54% yearly.
TSEM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.03%.
Measured over the past years, TSEM shows a small growth in Revenue. The Revenue has been growing by 3.08% on average per year.
EPS 1Y (TTM)-0.95%
EPS 3Y10.12%
EPS 5Y16.54%
EPS Q2Q%-3.51%
Revenue 1Y (TTM)8.03%
Revenue growth 3Y-1.62%
Revenue growth 5Y3.08%
Sales Q2Q%6.79%
3.2 Future
The Earnings Per Share is expected to grow by 12.45% on average over the next years. This is quite good.
TSEM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.59% yearly.
EPS Next Y2.76%
EPS Next 2Y14.64%
EPS Next 3Y23.7%
EPS Next 5Y12.45%
Revenue Next Year8.6%
Revenue Next 2Y10.66%
Revenue Next 3Y16.59%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 43.83, the valuation of TSEM can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as TSEM.
The average S&P500 Price/Earnings ratio is at 25.07. TSEM is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 32.42 indicates a quite expensive valuation of TSEM.
The rest of the industry has a similar Price/Forward Earnings ratio as TSEM.
TSEM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.83 | ||
| Fwd PE | 32.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TSEM indicates a somewhat cheap valuation: TSEM is cheaper than 70.54% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TSEM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 307.88 | ||
| EV/EBITDA | 19.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TSEM may justify a higher PE ratio.
TSEM's earnings are expected to grow with 23.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)15.89
PEG (5Y)2.65
EPS Next 2Y14.64%
EPS Next 3Y23.7%
5. Dividend
5.1 Amount
TSEM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
91.61
-6.92 (-7.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners72.98%
Inst Owner Change1.93%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.25B
Revenue(TTM)1.51B
Net Income(TTM)195.48M
Analysts83.64
Price Target94.59 (3.25%)
Short Float %1.42%
Short Ratio1.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.34%
Min EPS beat(2)0.23%
Max EPS beat(2)8.45%
EPS beat(4)4
Avg EPS beat(4)9.02%
Min EPS beat(4)0.23%
Max EPS beat(4)16.71%
EPS beat(8)8
Avg EPS beat(8)9.46%
EPS beat(12)10
Avg EPS beat(12)5.58%
EPS beat(16)14
Avg EPS beat(16)6.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.69%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)-1.54%
Revenue beat(4)0
Avg Revenue beat(4)-1.82%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)-1.54%
Revenue beat(8)0
Avg Revenue beat(8)-1.68%
Revenue beat(12)0
Avg Revenue beat(12)-1.6%
Revenue beat(16)1
Avg Revenue beat(16)-1.71%
PT rev (1m)8.78%
PT rev (3m)18.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.37%
EPS NY rev (1m)0%
EPS NY rev (3m)2.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.83 | ||
| Fwd PE | 32.42 | ||
| P/S | 6.77 | ||
| P/FCF | 307.88 | ||
| P/OCF | 22.43 | ||
| P/B | 3.62 | ||
| P/tB | 3.62 | ||
| EV/EBITDA | 19.14 |
EPS(TTM)2.09
EY2.28%
EPS(NY)2.83
Fwd EY3.08%
FCF(TTM)0.3
FCFY0.32%
OCF(TTM)4.08
OCFY4.46%
SpS13.53
BVpS25.32
TBVpS25.32
PEG (NY)15.89
PEG (5Y)2.65
Graham Number34.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 6.9% | ||
| ROCE | 5.69% | ||
| ROIC | 4.5% | ||
| ROICexc | 7.62% | ||
| ROICexgc | 7.62% | ||
| OM | 11.22% | ||
| PM (TTM) | 12.92% | ||
| GM | 22.01% | ||
| FCFM | 2.2% |
ROA(3y)11.63%
ROA(5y)9.11%
ROE(3y)14.38%
ROE(5y)11.61%
ROIC(3y)7.43%
ROIC(5y)6.59%
ROICexc(3y)13.75%
ROICexc(5y)11.76%
ROICexgc(3y)13.89%
ROICexgc(5y)11.9%
ROCE(3y)9.41%
ROCE(5y)8.35%
ROICexgc growth 3Y-5.99%
ROICexgc growth 5Y4.5%
ROICexc growth 3Y-5.69%
ROICexc growth 5Y4.76%
OM growth 3Y5.29%
OM growth 5Y12.9%
PM growth 3Y13.32%
PM growth 5Y14.69%
GM growth 3Y2.7%
GM growth 5Y4.89%
F-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 4.93 | ||
| Debt/EBITDA | 0.28 | ||
| Cap/Depr | 140.63% | ||
| Cap/Sales | 27.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97% | ||
| Profit Quality | 17.03% | ||
| Current Ratio | 6.61 | ||
| Quick Ratio | 5.54 | ||
| Altman-Z | N/A |
F-Score6
WACC11%
ROIC/WACC0.41
Cap/Depr(3y)153.76%
Cap/Depr(5y)141.53%
Cap/Sales(3y)27.82%
Cap/Sales(5y)25.81%
Profit Quality(3y)37.51%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-0.95%
EPS 3Y10.12%
EPS 5Y16.54%
EPS Q2Q%-3.51%
EPS Next Y2.76%
EPS Next 2Y14.64%
EPS Next 3Y23.7%
EPS Next 5Y12.45%
Revenue 1Y (TTM)8.03%
Revenue growth 3Y-1.62%
Revenue growth 5Y3.08%
Sales Q2Q%6.79%
Revenue Next Year8.6%
Revenue Next 2Y10.66%
Revenue Next 3Y16.59%
Revenue Next 5YN/A
EBIT growth 1Y-7.63%
EBIT growth 3Y3.58%
EBIT growth 5Y16.37%
EBIT Next Year123.64%
EBIT Next 3Y53.11%
EBIT Next 5YN/A
FCF growth 1Y-83.05%
FCF growth 3Y-51.15%
FCF growth 5Y-33.98%
OCF growth 1Y-33.14%
OCF growth 3Y2.12%
OCF growth 5Y9.02%
TOWER SEMICONDUCTOR LTD / TSEM FAQ
What is the ChartMill fundamental rating of TOWER SEMICONDUCTOR LTD (TSEM) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TSEM.
What is the valuation status of TOWER SEMICONDUCTOR LTD (TSEM) stock?
ChartMill assigns a valuation rating of 3 / 10 to TOWER SEMICONDUCTOR LTD (TSEM). This can be considered as Overvalued.
How profitable is TOWER SEMICONDUCTOR LTD (TSEM) stock?
TOWER SEMICONDUCTOR LTD (TSEM) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for TSEM stock?
The Price/Earnings (PE) ratio for TOWER SEMICONDUCTOR LTD (TSEM) is 43.83 and the Price/Book (PB) ratio is 3.62.
What is the expected EPS growth for TOWER SEMICONDUCTOR LTD (TSEM) stock?
The Earnings per Share (EPS) of TOWER SEMICONDUCTOR LTD (TSEM) is expected to grow by 2.76% in the next year.