TOWER SEMICONDUCTOR LTD (TSEM) Stock Fundamental Analysis
NASDAQ:TSEM - Nasdaq - IL0010823792 - Common Stock - Currency: USD
Overall TSEM gets a fundamental rating of 5 out of 10. We evaluated TSEM against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. TSEM has only an average score on both its financial health and profitability. TSEM has a decent growth rate and is not valued too expensively.
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.
TSEM had positive earnings in each of the past 5 years.
Each year in the past 5 years TSEM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TSEM (6.54%) is better than 71.82% of its industry peers.
TSEM has a Return On Equity of 7.53%. This is in the better half of the industry: TSEM outperforms 62.73% of its industry peers.
With a decent Return On Invested Capital value of 5.08%, TSEM is doing good in 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
The Profit Margin of TSEM (13.86%) is better than 70.91% of its industry peers.
In the last couple of years the Profit Margin of TSEM has grown nicely.
TSEM's Operating Margin of 12.54% is fine compared to the rest of the industry. TSEM outperforms 69.09% of its industry peers.
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.
TSEM's Gross Margin has improved in the last couple of years.
| 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.
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.
TSEM has a better debt/assets ratio than last year.
2.2 Solvency
A Debt/Equity ratio of 0.05 indicates that TSEM is not too dependend on debt financing.
TSEM has a Debt to Equity ratio (0.05) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.42
WACC12.2%
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 better Current ratio (6.93) than 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.
With an excellent Quick ratio value of 5.82, TSEM belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
| 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%.
TSEM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.54% yearly.
Looking at the last year, TSEM shows a small growth in Revenue. The Revenue has grown by 5.21% in the last year.
The Revenue has been growing slightly by 3.08% on average over the past years.
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.
The Revenue is expected to grow by 9.64% on average over the next years. This is quite good.
EPS Next Y0.58%
EPS Next 2Y11.83%
EPS Next 3Y11.98%
EPS Next 5Y12.45%
Revenue Next Year8.19%
Revenue Next 2Y9.64%
Revenue Next 3YN/A
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
Based on the Price/Earnings ratio of 20.89, the valuation of TSEM can be described as rather expensive.
Based on the Price/Earnings ratio, TSEM is valued a bit cheaper than 79.09% of the companies in the same industry.
TSEM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.52.
With a Price/Forward Earnings ratio of 16.63, TSEM is valued correctly.
Based on the Price/Forward Earnings ratio, TSEM is valued a bit cheaper than the industry average as 79.09% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TSEM to the average of the S&P500 Index (35.58), we can say TSEM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.89 | ||
| Fwd PE | 16.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TSEM is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.66 |
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.
PEG (NY)36.22
PEG (5Y)1.26
EPS Next 2Y11.83%
EPS Next 3Y11.98%
5. Dividend
5.1 Amount
TSEM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
44.7
-0.59 (-1.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners73.36%
Inst Owner Change-0.03%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.00B
Analysts83.64
Price Target58.41 (30.67%)
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)0%
PT rev (3m)0.88%
EPS NQ rev (1m)-3.23%
EPS NQ rev (3m)3.69%
EPS NY rev (1m)2.12%
EPS NY rev (3m)2.22%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.89 | ||
| Fwd PE | 16.63 | ||
| P/S | 3.41 | ||
| P/FCF | N/A | ||
| P/OCF | 11.56 | ||
| P/B | 1.85 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 6.66 |
EPS(TTM)2.14
EY4.79%
EPS(NY)2.69
Fwd EY6.02%
FCF(TTM)-0.15
FCFYN/A
OCF(TTM)3.87
OCFY8.65%
SpS13.12
BVpS24.16
TBVpS24.16
PEG (NY)36.22
PEG (5Y)1.26
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
WACC12.2%
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 Y0.58%
EPS Next 2Y11.83%
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 Year8.19%
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%