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TOW

Tower Semiconductor DB:TOW Stock Report

Last Price

US$46.40

Market Cap

US$5.0b

7D

5.4%

1Y

95.0%

Updated

02 May, 2022

Data

Company Financials +
TOW fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance3/6
Financial Health6/6
Dividends0/6

TOW Stock Overview

Tower Semiconductor Ltd., an independent semiconductor foundry, manufactures and markets analog intensive mixed-signal semiconductor devices in the United States, Japan, Asia, and Europe.

Tower Semiconductor Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Tower Semiconductor
Historical stock prices
Current Share PriceUS$46.40
52 Week HighUS$46.40
52 Week LowUS$20.60
Beta1.18
1 Month Change7.56%
3 Month Change53.64%
1 Year Change94.96%
3 Year Change187.56%
5 Year Change142.29%
Change since IPO-84.05%

Recent News & Updates

Shareholder Returns

TOWDE SemiconductorDE Market
7D5.4%0.4%0.4%
1Y95.0%-13.9%-10.4%

Return vs Industry: TOW exceeded the German Semiconductor industry which returned -16.5% over the past year.

Return vs Market: TOW exceeded the German Market which returned -10.4% over the past year.

Price Volatility

Is TOW's price volatile compared to industry and market?
TOW volatility
TOW Average Weekly Movement14.2%
Semiconductor Industry Average Movement7.4%
Market Average Movement6.3%
10% most volatile stocks in DE Market10.4%
10% least volatile stocks in DE Market3.4%

Stable Share Price: TOW is more volatile than 90% of German stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: TOW's weekly volatility has increased from 8% to 14% over the past year.

About the Company

FoundedEmployeesCEOWebsite
1993n/aRussell C. Ellwangerhttps://towersemi.com

Tower Semiconductor Ltd., an independent semiconductor foundry, manufactures and markets analog intensive mixed-signal semiconductor devices in the United States, Japan, Asia, and Europe. It provides various customizable process technologies, including SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, integrated power management, and MEMS. The company also offers wafer fabrication services and design enablement platform for design cycle, as well as transfer optimization and development process services to integrated device manufacturers and fabless companies.

Tower Semiconductor Fundamentals Summary

How do Tower Semiconductor's earnings and revenue compare to its market cap?
TOW fundamental statistics
Market CapUS$5.25b
Earnings (TTM)US$150.01m
Revenue (TTM)US$1.51b

35.0x

P/E Ratio

3.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TOW income statement (TTM)
RevenueUS$1.51b
Cost of RevenueUS$1.18b
Gross ProfitUS$329.12m
Other ExpensesUS$179.11m
EarningsUS$150.01m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.38
Gross Margin21.82%
Net Profit Margin9.95%
Debt/Equity Ratio10.0%

How did TOW perform over the long term?

See historical performance and comparison

Valuation

Is Tower Semiconductor undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


8.5%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: TOW (€46.4) is trading below our estimate of fair value (€50.69)

Significantly Below Fair Value: TOW is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TOW is poor value based on its PE Ratio (35x) compared to the German Semiconductor industry average (22x).

PE vs Market: TOW is poor value based on its PE Ratio (35x) compared to the German market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: TOW is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: TOW is overvalued based on its PB Ratio (3.2x) compared to the DE Semiconductor industry average (2.8x).


Future Growth

How is Tower Semiconductor forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


31.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TOW's forecast earnings growth (31.2% per year) is above the savings rate (-0.05%).

Earnings vs Market: TOW's earnings (31.2% per year) are forecast to grow faster than the German market (9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TOW's revenue (9.7% per year) is forecast to grow faster than the German market (5.4% per year).

High Growth Revenue: TOW's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TOW's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Tower Semiconductor performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-20.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TOW has high quality earnings.

Growing Profit Margin: TOW's current net profit margins (9.9%) are higher than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: TOW's earnings have declined by 20.7% per year over the past 5 years.

Accelerating Growth: TOW's earnings growth over the past year (82.3%) exceeds its 5-year average (-20.7% per year).

Earnings vs Industry: TOW earnings growth over the past year (82.3%) underperformed the Semiconductor industry 115.9%.


Return on Equity

High ROE: TOW's Return on Equity (9.5%) is considered low.


Financial Health

How is Tower Semiconductor's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TOW's short term assets ($1.2B) exceed its short term liabilities ($276.3M).

Long Term Liabilities: TOW's short term assets ($1.2B) exceed its long term liabilities ($339.5M).


Debt to Equity History and Analysis

Debt Level: TOW has more cash than its total debt.

Reducing Debt: TOW's debt to equity ratio has reduced from 50.4% to 10% over the past 5 years.

Debt Coverage: TOW's debt is well covered by operating cash flow (260.6%).

Interest Coverage: TOW's interest payments on its debt are well covered by EBIT (44.8x coverage).


Balance Sheet


Dividend

What is Tower Semiconductor current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate TOW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TOW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TOW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TOW's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TOW has not reported any payouts.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

13.5yrs

Average management tenure


CEO

Russell C. Ellwanger (66 yo)

17yrs

Tenure

Mr. Russell C. Ellwanger has been the Chief Executive Officer of Tower Semiconductor Ltd., since May 1, 2005. Mr. Ellwanger has been the Chief Executive Officer at Tower US Holdings Inc. since May 2002. He...


Leadership Team

Experienced Management: TOW's management team is seasoned and experienced (13.5 years average tenure).


Board Members

Experienced Board: TOW's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tower Semiconductor Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Tower Semiconductor Ltd.
  • Ticker: TOW
  • Exchange: DB
  • Founded: 1993
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Implied Market Cap: US$5.255b
  • Listing Market Cap: US$5.002b
  • Shares outstanding: 108.80m
  • Website: https://towersemi.com

Location

  • Tower Semiconductor Ltd.
  • Ramat Gavriel Industrial Park
  • 20 Shaul Amor Avenue
  • Migdal Haemek
  • 2310502
  • Israel

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/02 00:00
End of Day Share Price2022/05/02 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.