TOWER SEMICONDUCTOR LTD (TSEM) Stock Fundamental Analysis
NASDAQ:TSEM - IL0010823792 - Common Stock
60 USD
+2.43 (+4.22%)
60 USD
0 (0%)
TSEM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. TSEM has only an average score on both its financial health and profitability. TSEM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
TSEM had positive earnings in the past year.
In the past year TSEM had a positive cash flow from operations.
In the past 5 years TSEM has always been profitable.
TSEM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TSEM (6.13%) is better than 71.82% of its industry peers.
Looking at the Return On Equity, with a value of 7.08%, TSEM is in the better half of the industry, outperforming 65.45% of the companies in the same industry.
TSEM has a Return On Invested Capital of 4.71%. This is in the better half of the industry: TSEM outperforms 61.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSEM is below the industry average of 10.98%.
| 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 Profit Margin of 13.20%. This is in the better half of the industry: TSEM outperforms 71.82% of its industry peers.
TSEM's Profit Margin has improved in the last couple of years.
TSEM has a Operating Margin of 11.76%. This is in the better half of the industry: TSEM outperforms 67.27% of its industry peers.
TSEM's Operating Margin has improved in the last couple of years.
TSEM has a worse Gross Margin (22.39%) than 80.00% 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
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.
The number of shares outstanding for TSEM has been increased compared to 5 years ago.
The debt/assets ratio for TSEM has been reduced compared to a year ago.
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.
TSEM's Debt to Equity ratio of 0.05 is in line compared to the rest of the industry. TSEM outperforms 59.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.41
WACC11.59%
2.3 Liquidity
A Current Ratio of 6.57 indicates that TSEM has no problem at all paying its short term obligations.
TSEM's Current ratio of 6.57 is amongst the best of the industry. TSEM outperforms 86.36% of its industry peers.
A Quick Ratio of 5.50 indicates that TSEM has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 5.50, TSEM belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
| 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%.
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 7.17% in the last year.
TSEM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.08% yearly.
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
The Earnings Per Share is expected to grow by 12.45% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.13% on average over the next years. This is quite good.
EPS Next Y2.76%
EPS Next 2Y13.43%
EPS Next 3Y11.98%
EPS Next 5Y12.45%
Revenue Next Year8.6%
Revenue Next 2Y10.13%
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
With a Price/Earnings ratio of 28.44, TSEM can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TSEM is valued a bit cheaper than the industry average as 69.09% of the companies are valued more expensively.
TSEM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.69, which indicates a rather expensive current valuation of TSEM.
Based on the Price/Forward Earnings ratio, TSEM is valued a bit cheaper than 71.82% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TSEM to the average of the S&P500 Index (22.67), we can say TSEM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.44 | ||
| Fwd PE | 21.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TSEM is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.6 |
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)10.31
PEG (5Y)1.72
EPS Next 2Y13.43%
EPS Next 3Y11.98%
5. Dividend
5.1 Amount
No dividends for TSEM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
60
+2.43 (+4.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners73.27%
Inst Owner Change-1.24%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.71B
Analysts83.64
Price Target62.12 (3.53%)
Short Float %1.31%
Short Ratio1.78
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)6.41%
PT rev (3m)8.07%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)-11.07%
EPS NY rev (1m)2.17%
EPS NY rev (3m)4.34%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)-4.93%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.44 | ||
| Fwd PE | 21.69 | ||
| P/S | 4.51 | ||
| P/FCF | N/A | ||
| P/OCF | 15.18 | ||
| P/B | 2.42 | ||
| P/tB | 2.43 | ||
| EV/EBITDA | 9.6 |
EPS(TTM)2.11
EY3.52%
EPS(NY)2.77
Fwd EY4.61%
FCF(TTM)-0.05
FCFYN/A
OCF(TTM)3.95
OCFY6.59%
SpS13.3
BVpS24.8
TBVpS24.72
PEG (NY)10.31
PEG (5Y)1.72
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%
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-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
WACC11.59%
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 2Y13.43%
EPS Next 3Y11.98%
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 2Y10.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-1.01%
EBIT growth 3Y3.58%
EBIT growth 5Y16.37%
EBIT Next Year129.7%
EBIT Next 3YN/A
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%