NasdaqGS:TSEM

Stock Analysis Report

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.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Risks

  • Tower Semiconductor has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

3.7%

NasdaqGS:TSEM

0.8%

US Semiconductor

1.1%

US Market


1 Year Return

-6.4%

NasdaqGS:TSEM

11.3%

US Semiconductor

2.1%

US Market

TSEM underperformed the Semiconductor industry which returned 11.1% over the past year.

TSEM underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

TSEMIndustryMarket
7 Day3.7%0.8%1.1%
30 Day6.7%7.7%3.7%
90 Day32.9%12.3%2.3%
1 Year-6.4%-6.4%13.3%11.3%4.4%2.1%
3 Year35.6%35.6%83.6%72.9%47.0%37.4%
5 Year94.3%94.3%123.2%100.4%61.6%43.8%

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 based on future cash flows and its price relative to the stock market?

17.81x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Tower Semiconductor's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Tower Semiconductor's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Tower Semiconductor is good value based on earnings compared to the US Semiconductor industry average.

Tower Semiconductor is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Tower Semiconductor is good value based on expected growth next year.


Price Based on Value of Assets

Tower Semiconductor is good value based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

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

22.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Tower Semiconductor's revenue is expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).

Tower Semiconductor's earnings are expected to grow significantly at over 20% yearly.

Tower Semiconductor's revenue growth is positive but not above the United States of America market average.

Tower Semiconductor's earnings growth is expected to exceed the United States of America market average.

Tower Semiconductor's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Tower Semiconductor will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Tower Semiconductor performed over the past 5 years?

43.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Tower Semiconductor has delivered over 20% year on year earnings growth in the past 5 years.

Tower Semiconductor's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Tower Semiconductor's 1-year earnings growth is negative, it can't be compared to the US Semiconductor industry average.


Return on Equity

Tower Semiconductor has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Tower Semiconductor used its assets less efficiently than the US Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

Tower Semiconductor's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Tower Semiconductor's financial position?


Financial Position Analysis

Tower Semiconductor is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Tower Semiconductor's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Tower Semiconductor's level of debt (22%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (227.5% vs 22% today).

Debt is well covered by operating cash flow (108%, greater than 20% of total debt).

Tower Semiconductor earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.6x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Tower Semiconductor's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Tower Semiconductor's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Tower Semiconductor has not reported any payouts.

Unable to verify if Tower Semiconductor's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Tower Semiconductor has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Tower Semiconductor's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Tower Semiconductor's salary, the management and board of directors tenure and is there insider trading?

7.8yrs

Average management tenure


CEO

Russell Ellwanger (64yo)

14.3yrs

Tenure

0

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 ...


Management Age and Tenure

7.8yrs

Average Tenure

55yo

Average Age

The average tenure for the Tower Semiconductor management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

10.6yrs

Average Tenure

64yo

Average Age

The average tenure for the Tower Semiconductor board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Avi Strum (57yo)

    Senior VP & General Manager of Sensors Business Unit

    • Tenure: 14.7yrs
  • Itzhak Edrei (60yo)

    President

    • Tenure: 7.8yrs
  • Rafi Mor (55yo)

    Chief Operating Officer

    • Tenure: 5.1yrs
  • Oren Shirazi (49yo)

    CFO & Senior VP of Finance

    • Tenure: 14.8yrs
  • Russell Ellwanger (64yo)

    CEO & Director

    • Tenure: 14.3yrs
  • Nati Somekh (44yo)

    Senior VP

    • Tenure: 11yrs
  • Marco Racanelli (52yo)

    SVP & GM of Analog IC Business Unit and Newport Beach Site Manager

    • Tenure: 7.3yrs
  • Ilan Rabinovich (62yo)

    Senior VP of Quality & Reliability and Fab 1 Manager

    • Tenure: 4.7yrs
  • Yossi Netzer (55yo)

    Senior Vice President of Corporate Planning

    • Tenure: 7.2yrs
  • Noit Levi-Karoubi (35yo)

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 0yrs

Board Members

  • Jerry Neal (74yo)

    Director

    • Tenure: 1.2yrs
  • Yoav Chelouche (64yo)

    Independent Director

    • Tenure: 3.4yrs
  • Amir Elstein (63yo)

    Independent Chairman of the Board

    • Tenure: 10.7yrs
  • Dana Gross (52yo)

    Independent Director

    • Tenure: 10.8yrs
  • Rami Guzman (80yo)

    Independent Director

    • Tenure: 10.6yrs
  • Russell Ellwanger (64yo)

    CEO & Director

    • Tenure: 14.3yrs
  • Kalman Kaufman (74yo)

    Independent Director

    • Tenure: 14.1yrs
  • Alex Kornhauser (73yo)

    Director

    • Tenure: 11.1yrs
  • Ilan Flato (63yo)

    Director

    • Tenure: 10.4yrs
  • Iris Avner (54yo)

    Director

    • Tenure: 0yrs

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$2.167b
  • Shares outstanding: 106.43m
  • Website: https://www.towerjazz.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 Analysis2019/09/16 23:44
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.