124 USD
+5.7 (+4.82%)
123.2 USD
-0.8 (-0.65%)
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. TSEM has an average financial health and profitability rating. While showing a medium growth rate, TSEM is valued expensive at the moment.
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 6.01%, TSEM is in the better half of the industry, outperforming 70.54% 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 64.29% of the companies in the same industry.
TSEM has a better Return On Invested Capital (4.50%) than 61.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TSEM is below the industry average of 10.82%.
| 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 71.43% 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 65.18% of its industry peers.
TSEM's Operating Margin has improved in the last couple of years.
TSEM has a worse Gross Margin (22.01%) than 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TSEM is destroying value.
TSEM has more shares outstanding than it did 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
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 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/WACC0.38
WACC11.92%
2.3 Liquidity
A Current Ratio of 6.61 indicates that TSEM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 6.61, TSEM belongs to the top of the industry, outperforming 84.82% of the companies in the same industry.
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.
TSEM's Quick ratio of 5.54 is amongst the best of the industry. TSEM outperforms 83.93% of its industry peers.
| 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.
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
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 Year8.94%
Revenue Next 2Y12.25%
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.
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
A Price/Earnings ratio of 59.33 indicates a quite expensive valuation of TSEM.
The rest of the industry has a similar Price/Earnings ratio as TSEM.
Compared to an average S&P500 Price/Earnings ratio of 26.28, TSEM is valued quite expensively.
Based on the Price/Forward Earnings ratio of 42.48, the valuation of TSEM can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as TSEM.
TSEM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.33 | ||
| Fwd PE | 42.48 |
4.2 Price Multiples
TSEM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TSEM is cheaper than 70.54% of the companies in the same industry.
TSEM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 416.74 | ||
| EV/EBITDA | 23.83 |
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)17.83
PEG (5Y)3.59
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 | N/A |
124
+5.7 (+4.82%)
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 Cap13.87B
Revenue(TTM)1.51B
Net Income(TTM)195.48M
Analysts83.64
Price Target102.58 (-17.27%)
Short Float %1.77%
Short Ratio1.42
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)43.19%
PT rev (3m)65.14%
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 | 59.33 | ||
| Fwd PE | 42.48 | ||
| P/S | 9.17 | ||
| P/FCF | 416.74 | ||
| P/OCF | 30.36 | ||
| P/B | 4.9 | ||
| P/tB | 4.9 | ||
| EV/EBITDA | 23.83 |
EPS(TTM)2.09
EY1.69%
EPS(NY)2.92
Fwd EY2.35%
FCF(TTM)0.3
FCFY0.24%
OCF(TTM)4.08
OCFY3.29%
SpS13.53
BVpS25.32
TBVpS25.32
PEG (NY)17.83
PEG (5Y)3.59
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
WACC11.92%
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 59.33 and the Price/Book (PB) ratio is 4.9.
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.