NasdaqGS:TSEM

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Executive Summary

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

Rewards

Trading at 42.5% below our estimate of its fair value

Earnings are forecast to grow 29.08% per year

Risk Analysis

No risks detected for TSEM from our risk checks.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Tower Semiconductor's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TSEM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TSEM's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-3.2%

TSEM

-0.3%

US Semiconductor

-1.4%

US Market


1 Year Return

56.7%

TSEM

71.4%

US Semiconductor

37.1%

US Market

Return vs Industry: TSEM underperformed the US Semiconductor industry which returned 66.6% over the past year.

Return vs Market: TSEM exceeded the US Market which returned 34.1% over the past year.


Shareholder returns

TSEMIndustryMarket
7 Day-3.2%-0.3%-1.4%
30 Day5.6%3.3%1.6%
90 Day31.1%20.1%7.3%
1 Year56.7%56.7%74.4%71.4%40.2%37.1%
3 Year9.0%9.0%117.6%106.5%62.5%52.1%
5 Year131.9%131.9%352.4%309.1%133.9%108.0%

Long-Term Price Volatility Vs. Market

How volatile is Tower Semiconductor's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

42.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TSEM ($31.63) is trading below our estimate of fair value ($54.98)

Significantly Below Fair Value: TSEM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TSEM is poor value based on its PE Ratio (41.2x) compared to the US Semiconductor industry average (40.5x).

PE vs Market: TSEM is poor value based on its PE Ratio (41.2x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: TSEM is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: TSEM is good value based on its PB Ratio (2.3x) compared to the US Semiconductor industry average (4.9x).


Next Steps

Future Growth

How is Tower Semiconductor forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

29.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TSEM's forecast earnings growth (29.1% per year) is above the savings rate (2%).

Earnings vs Market: TSEM's earnings (29.1% per year) are forecast to grow faster than the US market (20.4% per year).

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

Revenue vs Market: TSEM's revenue (8.3% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: TSEM's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TSEM's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has Tower Semiconductor performed over the past 5 years?

-7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TSEM has high quality earnings.

Growing Profit Margin: TSEM's current net profit margins (6.5%) are lower than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: TSEM has become profitable over the past 5 years, growing earnings by -7.8% per year.

Accelerating Growth: TSEM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TSEM had negative earnings growth (-8.5%) over the past year, making it difficult to compare to the Semiconductor industry average (18.2%).


Return on Equity

High ROE: TSEM's Return on Equity (5.7%) is considered low.


Next Steps

Financial Health

How is Tower Semiconductor's financial position?


Financial Position Analysis

Short Term Liabilities: TSEM's short term assets ($1.1B) exceed its short term liabilities ($272.9M).

Long Term Liabilities: TSEM's short term assets ($1.1B) exceed its long term liabilities ($366.3M).


Debt to Equity History and Analysis

Debt Level: TSEM's debt to equity ratio (21.5%) is considered satisfactory.

Reducing Debt: TSEM's debt to equity ratio has reduced from 74.6% to 21.5% over the past 5 years.

Debt Coverage: TSEM's debt is well covered by operating cash flow (88.6%).

Interest Coverage: TSEM's interest payments on its debt are well covered by EBIT (38.8x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate TSEM'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 TSEM's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TSEM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

12.4yrs

Average management tenure


CEO

Russell C. Ellwanger (65 yo)

15.75yrs

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

NamePositionTenureCompensationOwnership
Russell C. Ellwanger
CEO & Director15.75yrsno datano data
Oren Shirazi
CFO & Senior VP of Finance16.25yrsno datano data
Rafi Mor
Chief Operating Officer6.5yrsno datano data
Noit Levy-Karoubi
Senior Vice President of Investor Relations & Corporate Communicationsno datano datano data
Nati Somekh
Senior VP12.42yrsno datano data
Guy Eristoff
Chief Marketingno datano datano data
Dalit Dahan
Senior Vice President of Human Resources & Information Technologyno datano datano data
Itzhak Edrei
President Emeritus12.42yrsno datano data
Yossi Netzer
Senior Vice President of Corporate Planning8.58yrsno datano data
Marco Racanelli
SVP & GM of Analog Business Unit and Newport Beach Site Manager8.67yrsno datano data
Avi Strum
Senior VP and GM of Sensors & Displays Business Unit16.08yrsno datano data
Dani Ashkenazi
Senior Vice President of Excellence1yrno datano data

12.4yrs

Average Tenure

56yo

Average Age

Experienced Management: TSEM's management team is seasoned and experienced (12.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Russell C. Ellwanger
CEO & Director15.75yrsno datano data
Avi Hasson
Director0.42yrno datano data
Yoav Chelouche
Independent Director4.83yrsno datano data
Amir Elstein
Chairman of the Board12.08yrsno datano data
Dana Gross
Independent Director12.25yrsno datano data
Rami Guzman
Independent Director12yrsno datano data
Kalman Kaufman
Independent Director15.5yrsno datano data
Ilan Flato
Independent Director11.83yrsno datano data
Iris Avner
Independent Directorno datano datano data
Michal Wolkin
Director0.42yrno datano data

11.8yrs

Average Tenure

64.5yo

Average Age

Experienced Board: TSEM's board of directors are seasoned and experienced ( 11.8 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tower Semiconductor Ltd.
  • Ticker: TSEM
  • Exchange: NasdaqGS
  • Founded: 1993
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$3.414b
  • Shares outstanding: 107.92m
  • Website: https://towersemi.com

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TSEMNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDOct 1994
TOWDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1994
TSEMTASE (The Tel-Aviv Stock Exchange)YesOrdinary SharesILILSOct 1994

Biography

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 vario...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/24 23:32
End of Day Share Price2021/02/24 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.