TOWER SEMICONDUCTOR LTD (TSEM)
IL0010823792 - Common Stock
We assign a fundamental rating of 5 out of 10 to TSEM. TSEM was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. While TSEM has a great profitability rating, there are some minor concerns on its financial health. TSEM is not valued too expensively and it also shows 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.
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
TSEM has a Return On Assets of 16.52%. This is amongst the best in the industry. TSEM outperforms 90.57% of its industry peers.
TSEM's Return On Equity of 19.97% is amongst the best of the industry. TSEM outperforms 84.91% of its industry peers.
TSEM's Return On Invested Capital of 6.02% is fine compared to the rest of the industry. TSEM outperforms 65.09% of its industry peers.
TSEM had an Average Return On Invested Capital over the past 3 years of 9.04%. This is in line with the industry average of 10.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.52% | ||
| ROE | 19.97% | ||
| ROIC | 6.02% |
ROA(3y)11.62%
ROA(5y)8.69%
ROE(3y)14.85%
ROE(5y)11.37%
ROIC(3y)9.04%
ROIC(5y)7.25%
1.3 Margins
TSEM has a Profit Margin of 35.27%. This is amongst the best in the industry. TSEM outperforms 95.28% of its industry peers.
TSEM's Profit Margin has improved in the last couple of years.
TSEM's Operating Margin of 12.73% is fine compared to the rest of the industry. TSEM outperforms 64.15% of its industry peers.
In the last couple of years the Operating Margin of TSEM has grown nicely.
TSEM has a worse Gross Margin (23.70%) than 75.47% of its industry peers.
TSEM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.73% | ||
| PM (TTM) | 35.27% | ||
| GM | 23.7% |
OM growth 3Y25.31%
OM growth 5Y3.56%
PM growth 3Y77.63%
PM growth 5Y28.51%
GM growth 3Y10.47%
GM growth 5Y2.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
Compared to 1 year ago, TSEM has an improved debt to assets ratio.
2.2 Solvency
TSEM has a debt to FCF ratio of 0.76. This is a very positive value and a sign of high solvency as it would only need 0.76 years to pay back of all of its debts.
The Debt to FCF ratio of TSEM (0.76) is better than 74.53% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that TSEM is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.06, TSEM is doing good in the industry, outperforming 62.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | N/A |
ROIC/WACC0.53
WACC11.47%
2.3 Liquidity
TSEM has a Current Ratio of 5.38. This indicates that TSEM is financially healthy and has no problem in meeting its short term obligations.
TSEM has a Current ratio of 5.38. This is amongst the best in the industry. TSEM outperforms 81.13% of its industry peers.
TSEM has a Quick Ratio of 4.46. This indicates that TSEM is financially healthy and has no problem in meeting its short term obligations.
TSEM's Quick ratio of 4.46 is fine compared to the rest of the industry. TSEM outperforms 78.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.38 | ||
| Quick Ratio | 4.46 |
3. Growth
3.1 Past
TSEM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.13%.
TSEM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.74% yearly.
TSEM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.51%.
TSEM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.76% yearly.
EPS 1Y (TTM)-15.13%
EPS 3Y26.5%
EPS 5Y4.74%
EPS growth Q2Q27.78%
Revenue 1Y (TTM)-13.51%
Revenue growth 3Y3.97%
Revenue growth 5Y1.76%
Revenue growth Q2Q-7.98%
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 12.28% on average per year.
Based on estimates for the next years, TSEM will show a small growth in Revenue. The Revenue will grow by 7.82% on average per year.
EPS Next Y1.09%
EPS Next 2Y9.82%
EPS Next 3Y10.83%
EPS Next 5Y12.28%
Revenue Next Year-0.76%
Revenue Next 2Y5.18%
Revenue Next 3Y7.82%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
TSEM is valuated rather expensively with a Price/Earnings ratio of 18.48.
83.96% of the companies in the same industry are more expensive than TSEM, based on the Price/Earnings ratio.
TSEM is valuated rather cheaply when we compare the Price/Earnings ratio to 28.56, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.10, TSEM is valued correctly.
81.13% of the companies in the same industry are more expensive than TSEM, based on the Price/Forward Earnings ratio.
TSEM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.48 | ||
| Fwd PE | 16.1 |
4.2 Price Multiples
TSEM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TSEM is cheaper than 97.17% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TSEM is valued cheaper than 93.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.83 | ||
| EV/EBITDA | 4.7 |
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.
TSEM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)16.97
PEG (5Y)3.9
EPS Next 2Y9.82%
EPS Next 3Y10.83%
5. Dividend
5.1 Amount
No dividends for TSEM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TOWER SEMICONDUCTOR LTD
NASDAQ:TSEM (5/14/2024, 7:05:37 PM)
After market: 35.67 -1.28 (-3.46%)36.95
+0.47 (+1.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.10B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.48 | ||
| Fwd PE | 16.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)16.97
PEG (5Y)3.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.52% | ||
| ROE | 19.97% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.73% | ||
| PM (TTM) | 35.27% | ||
| GM | 23.7% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.38 | ||
| Quick Ratio | 4.46 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-15.13%
EPS 3Y26.5%
EPS 5Y
EPS growth Q2Q
EPS Next Y1.09%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.51%
Revenue growth 3Y3.97%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y