111.59 USD
-3.27 (-2.85%)
We assign a fundamental rating of 5 out of 10 to TSEM. TSEM was compared to 112 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 valied quite expensively at the moment, while 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.
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
Looking at the Return On Assets, with a value of 6.01%, TSEM is in the better half of the industry, outperforming 70.54% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.90%, TSEM is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
TSEM has a Return On Invested Capital of 4.50%. This is in the better half of the industry: TSEM outperforms 61.61% 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 10.79%.
| 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
The Profit Margin of TSEM (12.92%) is better than 70.54% 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 11.22%, TSEM is in the better half of the industry, outperforming 65.18% of the companies in the same industry.
TSEM's Operating Margin has improved in the last couple of years.
TSEM's Gross Margin of 22.01% is on the low side compared to the rest of the industry. TSEM is outperformed by 79.46% of its industry peers.
In the last couple of years the Gross Margin of TSEM has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TSEM is destroying value.
TSEM has more shares outstanding than it did 1 year ago.
TSEM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TSEM has been reduced compared to a year ago.
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.
TSEM has a Debt to FCF ratio of 4.93. This is comparable to the rest of the industry: TSEM outperforms 58.04% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that TSEM is not too dependend on debt financing.
The Debt to Equity ratio of TSEM (0.05) is better than 61.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 4.93 | ||
| Altman-Z | N/A |
ROIC/WACC0.38
WACC11.74%
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.
The Current ratio of TSEM (6.61) is better 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.
The Quick ratio of TSEM (5.54) is better than 83.93% 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%.
Measured over the past years, TSEM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.54% on average per year.
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
TSEM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.45% yearly.
The Revenue is expected to grow by 16.96% on average over the next years. This is quite good.
EPS Next Y3.33%
EPS Next 2Y16.52%
EPS Next 3Y27.92%
EPS Next 5Y12.45%
Revenue Next Year8.94%
Revenue Next 2Y12.25%
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
TSEM is valuated quite expensively with a Price/Earnings ratio of 53.39.
TSEM's Price/Earnings ratio is in line with the industry average.
TSEM is valuated expensively when we compare the Price/Earnings ratio to 26.43, which is the current average of the S&P500 Index.
TSEM is valuated quite expensively with a Price/Forward Earnings ratio of 38.23.
TSEM's Price/Forward Earnings ratio is in line with the industry average.
TSEM is valuated expensively when we compare the Price/Forward Earnings ratio to 23.66, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.39 | ||
| Fwd PE | 38.23 |
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.
TSEM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 375.03 | ||
| EV/EBITDA | 23.01 |
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.
TSEM's earnings are expected to grow with 27.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)16.04
PEG (5Y)3.23
EPS Next 2Y16.52%
EPS Next 3Y27.92%
5. Dividend
5.1 Amount
No dividends for TSEM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:TSEM (12/17/2025, 3:33:07 PM)
111.59
-3.27 (-2.85%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners74.1%
Inst Owner Change1.93%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap12.48B
Revenue(TTM)1.51B
Net Income(TTM)195.48M
Analysts83.64
Price Target102.58 (-8.07%)
Short Float %1.87%
Short Ratio1.34
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)43.19%
PT rev (3m)55.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.55%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.39 | ||
| Fwd PE | 38.23 | ||
| P/S | 8.25 | ||
| P/FCF | 375.03 | ||
| P/OCF | 27.33 | ||
| P/B | 4.41 | ||
| P/tB | 4.41 | ||
| EV/EBITDA | 23.01 |
EPS(TTM)2.09
EY1.87%
EPS(NY)2.92
Fwd EY2.62%
FCF(TTM)0.3
FCFY0.27%
OCF(TTM)4.08
OCFY3.66%
SpS13.53
BVpS25.32
TBVpS25.32
PEG (NY)16.04
PEG (5Y)3.23
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
WACC11.74%
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 Year8.94%
Revenue Next 2Y12.25%
Revenue Next 3Y16.96%
Revenue Next 5YN/A
EBIT growth 1Y-7.63%
EBIT growth 3Y3.58%
EBIT growth 5Y16.37%
EBIT Next Year124.4%
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.
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 53.39 and the Price/Book (PB) ratio is 4.41.
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 3.33% in the next year.