117.42 USD
-3.25 (-2.69%)
117.1 USD
-0.32 (-0.27%)
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. TSEM has an average financial health and profitability rating. TSEM is quite expensive at the moment. 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.
In the past 5 years TSEM has always been profitable.
Each year in the past 5 years TSEM had a positive operating cash flow.
1.2 Ratios
TSEM has a better Return On Assets (6.01%) than 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.
Looking at the Return On Invested Capital, with a value of 4.50%, TSEM is in the better half of the industry, outperforming 61.06% of the companies in the same industry.
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 has a better Operating Margin (11.22%) than 64.60% of its industry peers.
In the last couple of years the Operating Margin of TSEM has grown nicely.
With a Gross Margin value of 22.01%, TSEM is not doing good in the industry: 79.65% of the companies in the same industry are doing better.
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.
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.
TSEM has a better debt/assets ratio than last year.
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.
TSEM has a Debt to FCF ratio (4.93) which is in line with 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 61.95% 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
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 84.96% of its industry peers.
A Quick Ratio of 5.54 indicates that TSEM has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 5.54, TSEM belongs to the top of the industry, outperforming 84.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.61 | ||
| Quick Ratio | 5.54 |
3. Growth
3.1 Past
The earnings per share for TSEM have decreased by -0.95% in the last year.
The Earnings Per Share has been growing by 16.54% on average over the past years. This is quite good.
Looking at the last year, TSEM shows a quite strong growth in Revenue. The Revenue has grown by 8.03% in the last year.
The Revenue has been growing slightly by 3.08% on average over the past years.
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.
Based on estimates for the next years, TSEM will show a quite strong growth in Revenue. The Revenue will grow by 16.96% on average per year.
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.
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 56.18, the valuation of TSEM can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as TSEM.
Compared to an average S&P500 Price/Earnings ratio of 26.51, TSEM is valued quite expensively.
TSEM is valuated quite expensively with a Price/Forward Earnings ratio of 40.22.
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 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.18 | ||
| Fwd PE | 40.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TSEM is valued a bit cheaper than the industry average as 69.91% of the companies are valued more expensively.
TSEM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 394.62 | ||
| EV/EBITDA | 24.39 |
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.
The decent profitability rating of TSEM 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)16.88
PEG (5Y)3.4
EPS Next 2Y16.52%
EPS Next 3Y27.92%
5. Dividend
5.1 Amount
No dividends for TSEM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
117.42
-3.25 (-2.69%)
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 Cap13.13B
Revenue(TTM)1.51B
Net Income(TTM)195.48M
Analysts83.64
Price Target107.68 (-8.3%)
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)0.29%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.55%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0.71%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.18 | ||
| Fwd PE | 40.22 | ||
| P/S | 8.68 | ||
| P/FCF | 394.62 | ||
| P/OCF | 28.75 | ||
| P/B | 4.64 | ||
| P/tB | 4.64 | ||
| EV/EBITDA | 24.39 |
EPS(TTM)2.09
EY1.78%
EPS(NY)2.92
Fwd EY2.49%
FCF(TTM)0.3
FCFY0.25%
OCF(TTM)4.08
OCFY3.48%
SpS13.53
BVpS25.32
TBVpS25.32
PEG (NY)16.88
PEG (5Y)3.4
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 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%.