TOWER SEMICONDUCTOR LTD (TSEM) Stock Fundamental Analysis
USA - NASDAQ:TSEM - IL0010823792 - Common Stock
67.02 USD
-1.79 (-2.6%)
65.3548 USD
-1.67 (-2.48%)
We assign a fundamental rating of 4 out of 10 to TSEM. TSEM was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of TSEM get a neutral evaluation. Nothing too spectacular is happening here. 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.
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
TSEM has a better Return On Assets (6.13%) than 73.21% of its industry peers.
The Return On Equity of TSEM (7.08%) is better than 66.96% of its industry peers.
With a decent Return On Invested Capital value of 4.71%, TSEM is doing good in 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 10.87%.
| 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
The Profit Margin of TSEM (13.20%) is better than 73.21% of its industry peers.
TSEM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.76%, TSEM is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
TSEM's Operating Margin has improved in the last couple of years.
TSEM has a Gross Margin of 22.39%. This is amonst the worse of the industry: TSEM underperforms 80.36% of its industry peers.
In the last couple of years the Gross Margin of TSEM has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TSEM is destroying value.
Compared to 1 year ago, TSEM has more shares outstanding
The number of shares outstanding for TSEM has been increased compared to 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.
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 | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.41
WACC11.42%
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 84.82% of its industry peers.
A Quick Ratio of 5.50 indicates that TSEM has no problem at all paying its short term obligations.
The Quick ratio of TSEM (5.50) is better than 85.71% 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%.
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.
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
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.
Based on estimates for the next years, TSEM will show a quite strong growth in Revenue. The Revenue will grow by 16.59% on average per year.
EPS Next Y2.76%
EPS Next 2Y13.43%
EPS Next 3Y11.98%
EPS Next 5Y12.45%
Revenue Next Year8.6%
Revenue Next 2Y10.66%
Revenue Next 3Y16.59%
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
Based on the Price/Earnings ratio of 31.76, the valuation of TSEM can be described as expensive.
69.64% of the companies in the same industry are more expensive than TSEM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.38. TSEM is around the same levels.
Based on the Price/Forward Earnings ratio of 24.23, the valuation of TSEM can be described as rather expensive.
Based on the Price/Forward Earnings ratio, TSEM is valued a bit cheaper than 68.75% of the companies in the same industry.
TSEM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.76 | ||
| Fwd PE | 24.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TSEM is valued cheaply inside the industry as 86.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.31 |
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)11.51
PEG (5Y)1.92
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 |
67.02
-1.79 (-2.6%)
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 Cap7.50B
Analysts83.64
Price Target65.86 (-1.73%)
Short Float %1.59%
Short Ratio1.46
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)9.31%
PT rev (3m)12.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.06%
EPS NY rev (1m)2.17%
EPS NY rev (3m)4.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.76 | ||
| Fwd PE | 24.23 | ||
| P/S | 5.04 | ||
| P/FCF | N/A | ||
| P/OCF | 16.96 | ||
| P/B | 2.7 | ||
| P/tB | 2.71 | ||
| EV/EBITDA | 12.31 |
EPS(TTM)2.11
EY3.15%
EPS(NY)2.77
Fwd EY4.13%
FCF(TTM)-0.05
FCFYN/A
OCF(TTM)3.95
OCFY5.9%
SpS13.3
BVpS24.8
TBVpS24.72
PEG (NY)11.51
PEG (5Y)1.92
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
WACC11.42%
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 2Y10.66%
Revenue Next 3Y16.59%
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%