122.22 USD
-0.06 (-0.05%)
122.59 USD
+0.37 (+0.3%)
Overall TSEM gets a fundamental rating of 5 out of 10. We evaluated TSEM against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. TSEM has only an average score on both its financial health and profitability. 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.
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
With a decent Return On Assets value of 6.01%, TSEM is doing good in the industry, outperforming 70.80% of the companies in the same industry.
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 has a Return On Invested Capital of 4.50%. This is in the better half of the industry: TSEM outperforms 61.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
Looking at the Profit Margin, with a value of 12.92%, TSEM is in the better half of 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 worse Gross Margin (22.01%) than 79.65% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TSEM is destroying value.
The number of shares outstanding for TSEM has been increased compared to 1 year ago.
Compared to 5 years ago, TSEM has more shares outstanding
TSEM has a better debt/assets ratio than last year.
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.
The Debt to FCF ratio of TSEM (4.93) is comparable to the rest of the industry.
TSEM has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.05, TSEM is doing good in the industry, outperforming 62.83% of the companies in the same industry.
| 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's Current ratio of 6.61 is amongst the best of the industry. TSEM outperforms 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.
The Quick ratio of TSEM (5.54) is better than 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%.
TSEM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.54% yearly.
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
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
With a Price/Earnings ratio of 58.48, TSEM can be considered very expensive at the moment.
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 26.92, TSEM is valued quite expensively.
Based on the Price/Forward Earnings ratio of 41.87, the valuation of TSEM can be described as expensive.
TSEM's Price/Forward Earnings is on the same level as the industry average.
TSEM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.48 | ||
| Fwd PE | 41.87 |
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 70.80% 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 | 410.75 | ||
| EV/EBITDA | 24.78 |
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.
A more expensive valuation may be justified as TSEM's earnings are expected to grow with 27.92% in the coming years.
PEG (NY)17.57
PEG (5Y)3.53
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% |
122.22
-0.06 (-0.05%)
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 Cap13.67B
Revenue(TTM)1.51B
Net Income(TTM)195.48M
Analysts83.64
Price Target107.68 (-11.9%)
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 | 58.48 | ||
| Fwd PE | 41.87 | ||
| P/S | 9.03 | ||
| P/FCF | 410.75 | ||
| P/OCF | 29.93 | ||
| P/B | 4.83 | ||
| P/tB | 4.83 | ||
| EV/EBITDA | 24.78 |
EPS(TTM)2.09
EY1.71%
EPS(NY)2.92
Fwd EY2.39%
FCF(TTM)0.3
FCFY0.24%
OCF(TTM)4.08
OCFY3.34%
SpS13.53
BVpS25.32
TBVpS25.32
PEG (NY)17.57
PEG (5Y)3.53
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%.