TOWER SEMICONDUCTOR LTD (TSEM) Stock Fundamental Analysis
USA - NASDAQ:TSEM - IL0010823792 - Common Stock
79 USD
+3.23 (+4.26%)
79 USD
0 (0%)
Taking everything into account, TSEM scores 5 out of 10 in our fundamental rating. TSEM was compared to 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
In the past year TSEM was profitable.
In the past year TSEM had a positive cash flow from operations.
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
TSEM's Return On Assets of 6.13% is fine compared to the rest of the industry. TSEM outperforms 73.21% of its industry peers.
TSEM's Return On Equity of 7.08% is fine compared to the rest of the industry. TSEM outperforms 66.96% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.71%, TSEM is in the better half of the industry, outperforming 63.39% 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 11.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 7.08% | ||
| ROIC | 4.71% |
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 (13.20%) than 73.21% of its industry peers.
TSEM's Profit Margin has improved in the last couple of years.
TSEM has a better Operating Margin (11.76%) than 68.75% of its industry peers.
TSEM's Operating Margin has improved in the last couple of years.
TSEM's Gross Margin of 22.39% is on the low side compared to the rest of the industry. TSEM is outperformed by 80.36% of its industry peers.
TSEM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.76% | ||
| PM (TTM) | 13.2% | ||
| GM | 22.39% |
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.
The debt/assets ratio for TSEM has been reduced compared to a year ago.
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 of 0.05. This is in the better half of the industry: TSEM outperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.41
WACC11.4%
2.3 Liquidity
TSEM has a Current Ratio of 6.57. This indicates that TSEM is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 6.57, TSEM belongs to the best of the industry, outperforming 83.04% of the companies in the same industry.
TSEM has a Quick Ratio of 5.50. This indicates that TSEM is financially healthy and has no problem in meeting its short term obligations.
TSEM's Quick ratio of 5.50 is amongst the best of the industry. TSEM outperforms 84.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.57 | ||
| Quick Ratio | 5.5 |
3. Growth
3.1 Past
TSEM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.44%.
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 a small growth in Revenue. In the last year, the Revenue has grown by 7.17%.
The Revenue has been growing slightly by 3.08% on average over the past years.
EPS 1Y (TTM)1.44%
EPS 3Y10.12%
EPS 5Y16.54%
EPS Q2Q%-5.66%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y-1.62%
Revenue growth 5Y3.08%
Sales Q2Q%5.95%
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 16.59% on average over the next years. This is quite good.
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
A Price/Earnings ratio of 37.44 indicates a quite expensive valuation of TSEM.
67.86% of the companies in the same industry are more expensive than TSEM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TSEM to the average of the S&P500 Index (27.08), we can say TSEM is valued slightly more expensively.
With a Price/Forward Earnings ratio of 27.96, TSEM can be considered very expensive at the moment.
66.07% of the companies in the same industry are more expensive than TSEM, based on the Price/Forward Earnings ratio.
TSEM is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.44 | ||
| Fwd PE | 27.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TSEM indicates a rather cheap valuation: TSEM is cheaper than 82.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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)13.57
PEG (5Y)2.26
EPS Next 2Y14.64%
EPS Next 3Y23.7%
5. Dividend
5.1 Amount
TSEM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
79
+3.23 (+4.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners72.98%
Inst Owner Change-0.35%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.84B
Revenue(TTM)1.49B
Net Income(TTM)196.48M
Analysts83.64
Price Target65.86 (-16.63%)
Short Float %1.25%
Short Ratio1.12
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)12.58%
Min EPS beat(2)8.45%
Max EPS beat(2)16.71%
EPS beat(4)4
Avg EPS beat(4)10.33%
Min EPS beat(4)5.44%
Max EPS beat(4)16.71%
EPS beat(8)8
Avg EPS beat(8)10.23%
EPS beat(12)10
Avg EPS beat(12)7.04%
EPS beat(16)14
Avg EPS beat(16)7.29%
Revenue beat(2)0
Avg Revenue beat(2)-1.9%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-1.85%
Revenue beat(4)0
Avg Revenue beat(4)-1.91%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)-1.85%
Revenue beat(8)0
Avg Revenue beat(8)-1.75%
Revenue beat(12)0
Avg Revenue beat(12)-1.64%
Revenue beat(16)1
Avg Revenue beat(16)-1.71%
PT rev (1m)0%
PT rev (3m)12.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.83%
EPS NY rev (1m)0%
EPS NY rev (3m)2.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.44 | ||
| Fwd PE | 27.96 | ||
| P/S | 5.94 | ||
| P/FCF | N/A | ||
| P/OCF | 19.99 | ||
| P/B | 3.18 | ||
| P/tB | 3.2 | ||
| EV/EBITDA | 13.98 |
EPS(TTM)2.11
EY2.67%
EPS(NY)2.83
Fwd EY3.58%
FCF(TTM)-0.05
FCFYN/A
OCF(TTM)3.95
OCFY5%
SpS13.3
BVpS24.8
TBVpS24.72
PEG (NY)13.57
PEG (5Y)2.26
Graham Number34.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 7.08% | ||
| ROCE | 5.96% | ||
| ROIC | 4.71% | ||
| ROICexc | 8% | ||
| ROICexgc | 8.04% | ||
| OM | 11.76% | ||
| PM (TTM) | 13.2% | ||
| GM | 22.39% | ||
| 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%
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-Score4
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.31 | ||
| Cap/Depr | 154.33% | ||
| Cap/Sales | 30.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.08% | ||
| Profit Quality | N/A | ||
| Current Ratio | 6.57 | ||
| Quick Ratio | 5.5 | ||
| Altman-Z | N/A |
F-Score4
WACC11.4%
ROIC/WACC0.41
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)1.44%
EPS 3Y10.12%
EPS 5Y16.54%
EPS Q2Q%-5.66%
EPS Next Y2.76%
EPS Next 2Y14.64%
EPS Next 3Y23.7%
EPS Next 5Y12.45%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y-1.62%
Revenue growth 5Y3.08%
Sales Q2Q%5.95%
Revenue Next Year8.6%
Revenue Next 2Y10.66%
Revenue Next 3Y16.59%
Revenue Next 5YN/A
EBIT growth 1Y-1.01%
EBIT growth 3Y3.58%
EBIT growth 5Y16.37%
EBIT Next Year123.64%
EBIT Next 3Y53.11%
EBIT Next 5YN/A
FCF growth 1Y79.95%
FCF growth 3Y-51.15%
FCF growth 5Y-33.98%
OCF growth 1Y9.62%
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 37.44 and the Price/Book (PB) ratio is 3.18.
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.