TOWER SEMICONDUCTOR LTD (TSEM) Stock Fundamental Analysis
NASDAQ:TSEM - Nasdaq - IL0010823792 - Common Stock - Currency: USD
TSEM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 110 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 has a decent growth rate and is not valued too expensively.
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.
In the past 5 years TSEM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.54%, TSEM is in the better half of the industry, outperforming 71.82% of the companies in the same industry.
The Return On Equity of TSEM (7.53%) is better than 62.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.08%, TSEM is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TSEM is below the industry average of 10.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.54% | ||
| ROE | 7.53% | ||
| ROIC | 5.08% |
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's Profit Margin of 13.86% is fine compared to the rest of the industry. TSEM outperforms 70.91% of its industry peers.
TSEM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.54%, TSEM is in the better half of the industry, outperforming 69.09% of the companies in the same industry.
TSEM's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 23.18%, TSEM is not doing good in the industry: 80.00% 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 | 12.54% | ||
| PM (TTM) | 13.86% | ||
| GM | 23.18% |
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.
TSEM has a better debt/assets ratio than last year.
2.2 Solvency
TSEM has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TSEM (0.05) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.42
WACC11.97%
2.3 Liquidity
TSEM has a Current Ratio of 6.93. This indicates that TSEM is financially healthy and has no problem in meeting its short term obligations.
TSEM has a Current ratio of 6.93. This is amongst the best in the industry. TSEM outperforms 88.18% of its industry peers.
TSEM has a Quick Ratio of 5.82. This indicates that TSEM is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TSEM (5.82) is better than 87.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.93 | ||
| Quick Ratio | 5.82 |
3. Growth
3.1 Past
TSEM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.84%.
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 small growth in Revenue. The Revenue has grown by 5.21% in the last year.
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)6.84%
EPS 3Y10.12%
EPS 5Y16.54%
EPS Q2Q%-2.17%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y-1.62%
Revenue growth 5Y3.08%
Sales Q2Q%9.45%
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 9.64% yearly.
EPS Next Y2%
EPS Next 2Y11.87%
EPS Next 3Y11.98%
EPS Next 5Y12.45%
Revenue Next Year8.12%
Revenue Next 2Y9.64%
Revenue Next 3YN/A
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
The Price/Earnings ratio is 21.68, which indicates a rather expensive current valuation of TSEM.
TSEM's Price/Earnings ratio is a bit cheaper when compared to the industry. TSEM is cheaper than 76.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of TSEM to the average of the S&P500 Index (27.45), we can say TSEM is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.24, which indicates a rather expensive current valuation of TSEM.
Based on the Price/Forward Earnings ratio, TSEM is valued cheaply inside the industry as 80.91% of the companies are valued more expensively.
TSEM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 17.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TSEM is valued cheaper than 95.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.91 |
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.
PEG (NY)10.84
PEG (5Y)1.31
EPS Next 2Y11.87%
EPS Next 3Y11.98%
5. Dividend
5.1 Amount
No dividends for TSEM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
46.4
+2.73 (+6.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners73.36%
Inst Owner Change3.68%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.19B
Analysts83.64
Price Target58.41 (25.88%)
Short Float %1.46%
Short Ratio2.98
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)13.71%
Min EPS beat(2)10.7%
Max EPS beat(2)16.71%
EPS beat(4)4
Avg EPS beat(4)12.08%
Min EPS beat(4)5.44%
Max EPS beat(4)16.71%
EPS beat(8)7
Avg EPS beat(8)8.1%
EPS beat(12)10
Avg EPS beat(12)6.37%
EPS beat(16)14
Avg EPS beat(16)6.82%
Revenue beat(2)0
Avg Revenue beat(2)-1.95%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-1.94%
Revenue beat(4)0
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)-1.65%
Revenue beat(8)0
Avg Revenue beat(8)-1.67%
Revenue beat(12)0
Avg Revenue beat(12)-1.68%
Revenue beat(16)1
Avg Revenue beat(16)-1.67%
PT rev (1m)1.63%
PT rev (3m)0.88%
EPS NQ rev (1m)3.79%
EPS NQ rev (3m)-2.11%
EPS NY rev (1m)3.56%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.48%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 17.24 | ||
| P/S | 3.53 | ||
| P/FCF | N/A | ||
| P/OCF | 11.99 | ||
| P/B | 1.92 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 6.91 |
EPS(TTM)2.14
EY4.61%
EPS(NY)2.69
Fwd EY5.8%
FCF(TTM)-0.15
FCFYN/A
OCF(TTM)3.87
OCFY8.34%
SpS13.13
BVpS24.18
TBVpS24.18
PEG (NY)10.84
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.54% | ||
| ROE | 7.53% | ||
| ROCE | 6.43% | ||
| ROIC | 5.08% | ||
| ROICexc | 8.66% | ||
| ROICexgc | 8.66% | ||
| OM | 12.54% | ||
| PM (TTM) | 13.86% | ||
| GM | 23.18% | ||
| FCFM | N/A |
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%
ROICexcg growth 3Y-5.99%
ROICexcg 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 | N/A | ||
| Debt/EBITDA | 0.29 | ||
| Cap/Depr | 156.24% | ||
| Cap/Sales | 30.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 6.93 | ||
| Quick Ratio | 5.82 | ||
| Altman-Z | N/A |
F-Score6
WACC11.97%
ROIC/WACC0.42
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)6.84%
EPS 3Y10.12%
EPS 5Y16.54%
EPS Q2Q%-2.17%
EPS Next Y2%
EPS Next 2Y11.87%
EPS Next 3Y11.98%
EPS Next 5Y12.45%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y-1.62%
Revenue growth 5Y3.08%
Sales Q2Q%9.45%
Revenue Next Year8.12%
Revenue Next 2Y9.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y3.67%
EBIT growth 3Y3.58%
EBIT growth 5Y16.37%
EBIT Next Year136.83%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-122.61%
FCF growth 3Y-51.15%
FCF growth 5Y-33.98%
OCF growth 1Y-7.15%
OCF growth 3Y2.12%
OCF growth 5Y9.02%