108.11 USD
+4.65 (+4.49%)
108.67 USD
+0.56 (+0.52%)
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 only an average score on both its financial health and profitability. 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.
Each year in the past 5 years TSEM has 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 73.21% of its industry peers.
TSEM has a better Return On Equity (6.90%) than 66.96% of its industry peers.
TSEM has a Return On Invested Capital of 4.50%. This is in the better half of the industry: TSEM outperforms 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TSEM is below the industry average of 10.76%.
| 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
TSEM has a better Profit Margin (12.92%) than 74.11% of its industry peers.
TSEM's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 11.22%, TSEM is doing good in the industry, outperforming 66.96% 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 22.01%, TSEM is not doing good in the industry: 81.25% 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 | 11.22% | ||
| 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
TSEM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TSEM has been increased compared to 1 year ago.
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
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.
A Debt/Equity ratio of 0.05 indicates that TSEM is not too dependend on debt financing.
TSEM's Debt to Equity ratio of 0.05 is fine compared to the rest of the industry. TSEM outperforms 61.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 4.93 | ||
| Altman-Z | N/A |
ROIC/WACC0.39
WACC11.44%
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 84.82% 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.
With an excellent Quick ratio value of 5.54, TSEM belongs to the best of the industry, outperforming 83.93% 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.
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%.
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
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.
Based on estimates for the next years, TSEM will show a quite strong growth in Revenue. The Revenue will grow by 16.59% on average per year.
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
The Price/Earnings ratio is 51.73, which means the current valuation is very expensive for TSEM.
TSEM's Price/Earnings is on the same level as the industry average.
TSEM is valuated expensively when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 38.26, which means the current valuation is very expensive for TSEM.
TSEM's Price/Forward Earnings is on the same level as the industry average.
TSEM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.73 | ||
| Fwd PE | 38.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TSEM is valued a bit cheaper than 71.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TSEM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 363.33 | ||
| EV/EBITDA | 20.31 |
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.
TSEM's earnings are expected to grow with 23.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)18.75
PEG (5Y)3.13
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 |
108.11
+4.65 (+4.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners72.98%
Inst Owner Change1.93%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap12.09B
Revenue(TTM)1.51B
Net Income(TTM)195.48M
Analysts83.64
Price Target94.59 (-12.51%)
Short Float %1.42%
Short Ratio1.17
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)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)43.63%
PT rev (3m)52.27%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-0.29%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.73 | ||
| Fwd PE | 38.26 | ||
| P/S | 7.99 | ||
| P/FCF | 363.33 | ||
| P/OCF | 26.47 | ||
| P/B | 4.27 | ||
| P/tB | 4.27 | ||
| EV/EBITDA | 20.31 |
EPS(TTM)2.09
EY1.93%
EPS(NY)2.83
Fwd EY2.61%
FCF(TTM)0.3
FCFY0.28%
OCF(TTM)4.08
OCFY3.78%
SpS13.53
BVpS25.32
TBVpS25.32
PEG (NY)18.75
PEG (5Y)3.13
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
WACC11.44%
ROIC/WACC0.39
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 Y2.76%
EPS Next 2Y14.64%
EPS Next 3Y23.7%
EPS Next 5Y12.45%
Revenue 1Y (TTM)8.03%
Revenue growth 3Y-1.62%
Revenue growth 5Y3.08%
Sales Q2Q%6.79%
Revenue Next Year8.6%
Revenue Next 2Y10.66%
Revenue Next 3Y16.59%
Revenue Next 5YN/A
EBIT growth 1Y-7.63%
EBIT growth 3Y3.58%
EBIT growth 5Y16.37%
EBIT Next Year123.64%
EBIT Next 3Y53.11%
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 51.73 and the Price/Book (PB) ratio is 4.27.
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.