TOWER SEMICONDUCTOR LTD (TSEM) Stock Fundamental Analysis
USA - NASDAQ:TSEM - IL0010823792 - Common Stock
88.19 USD
+5.74 (+6.96%)
TSEM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. TSEM has an average financial health and profitability rating. TSEM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
TSEM had positive earnings in the past year.
TSEM had a positive operating cash flow in the past year.
Each year in the past 5 years TSEM has been profitable.
TSEM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TSEM has a Return On Assets of 6.13%. This is in the better half of the industry: TSEM outperforms 73.21% of its industry peers.
The Return On Equity of TSEM (7.08%) is better than 66.96% of its industry peers.
TSEM has a better Return On Invested Capital (4.71%) than 63.39% of its industry peers.
TSEM had an Average Return On Invested Capital over the past 3 years of 7.43%. This is below the industry average of 11.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 7.08% | ||
| ROIC | 4.71% |
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 has a Profit Margin of 13.20%. This is in the better half 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.
Looking at the Operating Margin, with a value of 11.76%, TSEM is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
In the last couple of years the Operating Margin of TSEM has grown nicely.
With a Gross Margin value of 22.39%, TSEM is not doing good in the industry: 80.36% of the companies in the same industry are doing better.
TSEM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.76% | ||
| PM (TTM) | 13.2% | ||
| GM | 22.39% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TSEM is destroying value.
Compared to 1 year ago, TSEM has more shares outstanding
TSEM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TSEM has an improved debt to assets ratio.
2.2 Solvency
A Debt/Equity ratio of 0.05 indicates that TSEM is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.05, TSEM is doing good in the industry, outperforming 61.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.42
WACC11.29%
2.3 Liquidity
TSEM has a Current Ratio of 6.57. This indicates that TSEM is financially healthy and has no problem in meeting its short term obligations.
TSEM has a better Current ratio (6.57) than 83.93% of its industry peers.
A Quick Ratio of 5.50 indicates that TSEM has no problem at all paying its short term obligations.
TSEM's Quick ratio of 5.50 is amongst the best of the industry. TSEM outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.57 | ||
| Quick Ratio | 5.5 |
3. Growth
3.1 Past
TSEM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.44%.
TSEM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.54% yearly.
Looking at the last year, TSEM shows a small growth in Revenue. The Revenue has grown by 7.17% in the last year.
The Revenue has been growing slightly by 3.08% on average over the past years.
EPS 1Y (TTM)1.44%
EPS 3Y10.12%
EPS 5Y16.54%
EPS Q2Q%-5.66%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y-1.62%
Revenue growth 5Y3.08%
Sales Q2Q%5.95%
3.2 Future
Based on estimates for the next years, TSEM will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.45% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 41.80 indicates a quite expensive valuation of TSEM.
Based on the Price/Earnings ratio, TSEM is valued a bit cheaper than the industry average as 65.18% of the companies are valued more expensively.
TSEM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.03.
Based on the Price/Forward Earnings ratio of 31.21, the valuation of TSEM can be described as expensive.
Based on the Price/Forward Earnings ratio, TSEM is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, TSEM is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.8 | ||
| Fwd PE | 31.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TSEM is valued a bit cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TSEM has a very decent profitability rating, which 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)15.15
PEG (5Y)2.53
EPS Next 2Y14.64%
EPS Next 3Y23.7%
5. Dividend
5.1 Amount
No dividends for TSEM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:TSEM (11/5/2025, 12:54:08 PM)
88.19
+5.74 (+6.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners72.98%
Inst Owner Change0.52%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.86B
Revenue(TTM)1.49B
Net Income(TTM)196.48M
Analysts83.64
Price Target71.64 (-18.77%)
Short Float %1.25%
Short Ratio1.12
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)12.58%
Min EPS beat(2)8.45%
Max EPS beat(2)16.71%
EPS beat(4)4
Avg EPS beat(4)10.33%
Min EPS beat(4)5.44%
Max EPS beat(4)16.71%
EPS beat(8)8
Avg EPS beat(8)10.23%
EPS beat(12)10
Avg EPS beat(12)7.04%
EPS beat(16)14
Avg EPS beat(16)7.29%
Revenue beat(2)0
Avg Revenue beat(2)-1.9%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-1.85%
Revenue beat(4)0
Avg Revenue beat(4)-1.91%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)-1.85%
Revenue beat(8)0
Avg Revenue beat(8)-1.75%
Revenue beat(12)0
Avg Revenue beat(12)-1.64%
Revenue beat(16)1
Avg Revenue beat(16)-1.71%
PT rev (1m)8.78%
PT rev (3m)22.71%
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)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.8 | ||
| Fwd PE | 31.21 | ||
| P/S | 6.63 | ||
| P/FCF | N/A | ||
| P/OCF | 22.31 | ||
| P/B | 3.56 | ||
| P/tB | 3.57 | ||
| EV/EBITDA | 15.59 |
EPS(TTM)2.11
EY2.39%
EPS(NY)2.83
Fwd EY3.2%
FCF(TTM)-0.05
FCFYN/A
OCF(TTM)3.95
OCFY4.48%
SpS13.3
BVpS24.8
TBVpS24.72
PEG (NY)15.15
PEG (5Y)2.53
Graham Number34.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 7.08% | ||
| ROCE | 5.96% | ||
| ROIC | 4.71% | ||
| ROICexc | 8% | ||
| ROICexgc | 8.04% | ||
| OM | 11.76% | ||
| PM (TTM) | 13.2% | ||
| GM | 22.39% | ||
| FCFM | N/A |
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-Score4
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.31 | ||
| Cap/Depr | 154.33% | ||
| Cap/Sales | 30.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.08% | ||
| Profit Quality | N/A | ||
| Current Ratio | 6.57 | ||
| Quick Ratio | 5.5 | ||
| Altman-Z | N/A |
F-Score4
WACC11.29%
ROIC/WACC0.42
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)1.44%
EPS 3Y10.12%
EPS 5Y16.54%
EPS Q2Q%-5.66%
EPS Next Y2.76%
EPS Next 2Y14.64%
EPS Next 3Y23.7%
EPS Next 5Y12.45%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y-1.62%
Revenue growth 5Y3.08%
Sales Q2Q%5.95%
Revenue Next Year8.6%
Revenue Next 2Y10.66%
Revenue Next 3Y16.59%
Revenue Next 5YN/A
EBIT growth 1Y-1.01%
EBIT growth 3Y3.58%
EBIT growth 5Y16.37%
EBIT Next Year123.64%
EBIT Next 3Y53.11%
EBIT Next 5YN/A
FCF growth 1Y79.95%
FCF growth 3Y-51.15%
FCF growth 5Y-33.98%
OCF growth 1Y9.62%
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 41.8 and the Price/Book (PB) ratio is 3.56.
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.