115.95 USD
-1.38 (-1.18%)
We assign a fundamental rating of 5 out of 10 to TSEM. TSEM was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of TSEM get a neutral evaluation. Nothing too spectacular is happening here. TSEM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TSEM was profitable.
TSEM had a positive operating cash flow in the past year.
In the past 5 years TSEM has always 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 6.01%. This is in the better half of the industry: TSEM outperforms 70.80% of its industry peers.
With a decent Return On Equity value of 6.90%, TSEM is doing good in the industry, outperforming 63.72% of the companies in the same industry.
TSEM's Return On Invested Capital of 4.50% is fine compared to the rest of the industry. TSEM outperforms 61.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSEM is below the industry average of 10.75%.
| 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
With a decent Profit Margin value of 12.92%, TSEM is doing good in the industry, outperforming 69.91% of the companies in the same industry.
In the last couple of years the Profit Margin of TSEM has grown nicely.
TSEM's Operating Margin of 11.22% is fine compared to the rest of the industry. TSEM outperforms 64.60% of its industry peers.
In the last couple of years the Operating Margin of TSEM has grown nicely.
TSEM has a Gross Margin of 22.01%. This is in the lower half of the industry: TSEM underperforms 79.65% 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
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
The number of shares outstanding for TSEM has been increased compared to 5 years ago.
Compared to 1 year ago, TSEM has an improved debt to assets ratio.
2.2 Solvency
TSEM has a debt to FCF ratio of 4.93. This is a neutral value as TSEM would need 4.93 years to pay back of all of its debts.
With a Debt to FCF ratio value of 4.93, TSEM perfoms like the industry average, outperforming 57.52% of the companies in the same industry.
TSEM has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
TSEM has a Debt to Equity ratio of 0.05. This is in the better half of the industry: TSEM outperforms 62.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 4.93 | ||
| Altman-Z | N/A |
ROIC/WACC0.38
WACC11.68%
2.3 Liquidity
TSEM has a Current Ratio of 6.61. This indicates that TSEM is financially healthy and has no problem in meeting its short term obligations.
TSEM has a better Current ratio (6.61) than 84.96% 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's Quick ratio of 5.54 is amongst the best of the industry. TSEM outperforms 84.07% 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%.
The Earnings Per Share has been growing by 16.54% on average over the past years. This is quite good.
The Revenue has grown by 8.03% in the past year. This is quite good.
TSEM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.08% yearly.
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
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 16.96% yearly.
EPS Next Y3.33%
EPS Next 2Y16.52%
EPS Next 3Y27.92%
EPS Next 5Y12.45%
Revenue Next Year9.01%
Revenue Next 2Y12.86%
Revenue Next 3Y16.96%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 55.48, which means the current valuation is very expensive for TSEM.
Compared to the rest of the industry, the Price/Earnings ratio of TSEM is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.00, TSEM is valued quite expensively.
Based on the Price/Forward Earnings ratio of 39.72, the valuation of TSEM can be described as expensive.
TSEM's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of TSEM to the average of the S&P500 Index (23.70), we can say TSEM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.48 | ||
| Fwd PE | 39.72 |
4.2 Price Multiples
TSEM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TSEM is cheaper than 70.80% of the companies in the same industry.
TSEM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 389.68 | ||
| EV/EBITDA | 23.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TSEM does not grow enough to justify the current Price/Earnings ratio.
TSEM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TSEM's earnings are expected to grow with 27.92% in the coming years.
PEG (NY)16.67
PEG (5Y)3.35
EPS Next 2Y16.52%
EPS Next 3Y27.92%
5. Dividend
5.1 Amount
TSEM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:TSEM (1/9/2026, 10:02:00 AM)
115.95
-1.38 (-1.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners74.07%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap12.97B
Revenue(TTM)1.51B
Net Income(TTM)195.48M
Analysts83.64
Price Target107.68 (-7.13%)
Short Float %2.63%
Short Ratio1.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)13.84%
PT rev (3m)63.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.48 | ||
| Fwd PE | 39.72 | ||
| P/S | 8.57 | ||
| P/FCF | 389.68 | ||
| P/OCF | 28.39 | ||
| P/B | 4.58 | ||
| P/tB | 4.58 | ||
| EV/EBITDA | 23.6 |
EPS(TTM)2.09
EY1.8%
EPS(NY)2.92
Fwd EY2.52%
FCF(TTM)0.3
FCFY0.26%
OCF(TTM)4.08
OCFY3.52%
SpS13.53
BVpS25.32
TBVpS25.32
PEG (NY)16.67
PEG (5Y)3.35
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
WACC11.68%
ROIC/WACC0.38
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 Y3.33%
EPS Next 2Y16.52%
EPS Next 3Y27.92%
EPS Next 5Y12.45%
Revenue 1Y (TTM)8.03%
Revenue growth 3Y-1.62%
Revenue growth 5Y3.08%
Sales Q2Q%6.79%
Revenue Next Year9.01%
Revenue Next 2Y12.86%
Revenue Next 3Y16.96%
Revenue Next 5YN/A
EBIT growth 1Y-7.63%
EBIT growth 3Y3.58%
EBIT growth 5Y16.37%
EBIT Next Year124.75%
EBIT Next 3Y55.94%
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.
Can you provide the valuation status for TOWER SEMICONDUCTOR LTD?
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.
What is the earnings growth outlook for TOWER SEMICONDUCTOR LTD?
The Earnings per Share (EPS) of TOWER SEMICONDUCTOR LTD (TSEM) is expected to grow by 3.33% in the next year.
Is the dividend of TOWER SEMICONDUCTOR LTD sustainable?
The dividend rating of TOWER SEMICONDUCTOR LTD (TSEM) is 0 / 10 and the dividend payout ratio is 0%.