TOWER SEMICONDUCTOR LTD (TSEM) Stock Fundamental Analysis
NASDAQ:TSEM - Nasdaq - IL0010823792 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to TSEM. TSEM was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. TSEM has only an average score on both its financial health and profitability. TSEM is not valued too expensively and it also shows 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.
TSEM had positive earnings in each of the past 5 years.
In the past 5 years TSEM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TSEM (6.75%) is better than 73.64% of its industry peers.
The Return On Equity of TSEM (7.83%) is better than 62.73% of its industry peers.
TSEM has a Return On Invested Capital of 5.23%. This is in the better half of the industry: TSEM outperforms 63.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSEM is below the industry average of 11.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.75% | ||
| ROE | 7.83% | ||
| ROIC | 5.23% |
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 (14.47%) than 71.82% of its industry peers.
In the last couple of years the Profit Margin of TSEM has grown nicely.
Looking at the Operating Margin, with a value of 12.88%, TSEM is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
In the last couple of years the Operating Margin of TSEM has grown nicely.
The Gross Margin of TSEM (23.64%) is worse than 77.27% of its industry peers.
TSEM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.88% | ||
| PM (TTM) | 14.47% | ||
| GM | 23.64% |
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.
TSEM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TSEM has more shares outstanding
The debt/assets ratio for TSEM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.94 indicates that TSEM is not in any danger for bankruptcy at the moment.
TSEM has a better Altman-Z score (7.94) than 74.55% of its industry peers.
The Debt to FCF ratio of TSEM is 13.80, which is on the high side as it means it would take TSEM, 13.80 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 13.80, TSEM perfoms like the industry average, outperforming 46.36% of the companies in the same industry.
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 | 13.8 | ||
| Altman-Z | 7.94 |
ROIC/WACC0.44
WACC11.82%
2.3 Liquidity
A Current Ratio of 6.18 indicates that TSEM has no problem at all paying its short term obligations.
With an excellent Current ratio value of 6.18, TSEM belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
A Quick Ratio of 5.23 indicates that TSEM has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 5.23, TSEM belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.18 | ||
| Quick Ratio | 5.23 |
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.
TSEM shows a small growth in Revenue. In the last year, the Revenue has grown by 0.94%.
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)0.94%
Revenue growth 3Y-1.62%
Revenue growth 5Y3.08%
Sales Q2Q%9.45%
3.2 Future
TSEM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.45% yearly.
TSEM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.67% yearly.
EPS Next Y-1.51%
EPS Next 2Y10.76%
EPS Next 3Y11.98%
EPS Next 5Y12.45%
Revenue Next Year8.4%
Revenue Next 2Y9.67%
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
A Price/Earnings ratio of 19.24 indicates a rather expensive valuation of TSEM.
Based on the Price/Earnings ratio, TSEM is valued a bit cheaper than 76.36% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.03, TSEM is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.61, which indicates a correct valuation of TSEM.
TSEM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TSEM is cheaper than 76.36% of the companies in the same industry.
TSEM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.24 | ||
| Fwd PE | 15.61 |
4.2 Price Multiples
93.64% of the companies in the same industry are more expensive than TSEM, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as TSEM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 364.97 | ||
| EV/EBITDA | 5.67 |
4.3 Compensation for Growth
The decent profitability rating of TSEM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.16
EPS Next 2Y10.76%
EPS Next 3Y11.98%
5. Dividend
5.1 Amount
No dividends for TSEM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:TSEM (5/22/2025, 10:13:03 AM)
41.17
+0.19 (+0.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners66.03%
Inst Owner Change3.97%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.57B
Analysts83.64
Price Target57.48 (39.62%)
Short Float %1.73%
Short Ratio3.05
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)8.07%
Min EPS beat(2)5.44%
Max EPS beat(2)10.7%
EPS beat(4)4
Avg EPS beat(4)11.52%
Min EPS beat(4)5.44%
Max EPS beat(4)15.47%
EPS beat(8)6
Avg EPS beat(8)2.9%
EPS beat(12)10
Avg EPS beat(12)5.54%
EPS beat(16)13
Avg EPS beat(16)5.61%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)-1.91%
Revenue beat(4)0
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)-1.14%
Revenue beat(8)0
Avg Revenue beat(8)-1.56%
Revenue beat(12)1
Avg Revenue beat(12)-1.42%
Revenue beat(16)1
Avg Revenue beat(16)-1.64%
PT rev (1m)-0.74%
PT rev (3m)1.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.8%
EPS NY rev (1m)1.17%
EPS NY rev (3m)-5.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)-1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.24 | ||
| Fwd PE | 15.61 | ||
| P/S | 3.18 | ||
| P/FCF | 364.97 | ||
| P/OCF | 10.19 | ||
| P/B | 1.72 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 5.67 |
EPS(TTM)2.14
EY5.2%
EPS(NY)2.64
Fwd EY6.41%
FCF(TTM)0.11
FCFY0.27%
OCF(TTM)4.04
OCFY9.81%
SpS12.93
BVpS23.89
TBVpS23.8
PEG (NY)N/A
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.75% | ||
| ROE | 7.83% | ||
| ROCE | 6.62% | ||
| ROIC | 5.23% | ||
| ROICexc | 9.27% | ||
| ROICexgc | 9.33% | ||
| OM | 12.88% | ||
| PM (TTM) | 14.47% | ||
| GM | 23.64% | ||
| FCFM | 0.87% |
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-Score5
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 13.8 | ||
| Debt/EBITDA | 0.28 | ||
| Cap/Depr | 163.79% | ||
| Cap/Sales | 30.37% | ||
| Interest Coverage | 43.49 | ||
| Cash Conversion | 99.41% | ||
| Profit Quality | 6.03% | ||
| Current Ratio | 6.18 | ||
| Quick Ratio | 5.23 | ||
| Altman-Z | 7.94 |
F-Score5
WACC11.82%
ROIC/WACC0.44
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 Y-1.51%
EPS Next 2Y10.76%
EPS Next 3Y11.98%
EPS Next 5Y12.45%
Revenue 1Y (TTM)0.94%
Revenue growth 3Y-1.62%
Revenue growth 5Y3.08%
Sales Q2Q%9.45%
Revenue Next Year8.4%
Revenue Next 2Y9.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-8.01%
EBIT growth 3Y3.58%
EBIT growth 5Y16.37%
EBIT Next Year138.82%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-94.6%
FCF growth 3Y-51.15%
FCF growth 5Y-33.98%
OCF growth 1Y-33.68%
OCF growth 3Y2.12%
OCF growth 5Y9.02%