Tower Semiconductor
Market Cap
US$3.3b
Last Updated
2021/01/24 00:42 UTC
Data Sources
Company Financials +
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
Snowflake Analysis
Flawless balance sheet with moderate growth potential.
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 +/- 5% a week.
Volatility Over Time: TSEM's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
6.3%
TSEM
3.2%
US Semiconductor
2.3%
US Market
1 Year Return
21.7%
TSEM
52.9%
US Semiconductor
23.8%
US Market
Return vs Industry: TSEM underperformed the US Semiconductor industry which returned 52.9% over the past year.
Return vs Market: TSEM underperformed the US Market which returned 23.8% over the past year.
Shareholder returns
| TSEM | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.3% | 3.2% | 2.3% |
| 30 Day | 19.1% | 10.9% | 4.8% |
| 90 Day | 51.5% | 24.8% | 14.5% |
| 1 Year | 21.7%21.7% | 55.6%52.9% | 26.6%23.8% |
| 3 Year | -13.1%-13.1% | 106.8%96.1% | 45.0%35.4% |
| 5 Year | 140.5%140.5% | 358.1%314.1% | 126.2%101.0% |
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
1 week ago | Simply Wall St
A Look At The Intrinsic Value Of Tower Semiconductor Ltd. (NASDAQ:TSEM)3 weeks ago | Simply Wall St
Does Tower Semiconductor's (NASDAQ:TSEM) Share Price Gain of 91% Match Its Business Performance?1 month ago | Simply Wall St
We Think Tower Semiconductor (NASDAQ:TSEM) Can Stay On Top Of Its DebtValuation
Is Tower Semiconductor undervalued compared to its fair value and its price relative to the market?
44.94x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TSEM ($30.23) is trading above our estimate of fair value ($29.08)
Significantly Below Fair Value: TSEM is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TSEM is good value based on its PE Ratio (44.9x) compared to the US Semiconductor industry average (46.1x).
PE vs Market: TSEM is poor value based on its PE Ratio (44.9x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: TSEM is poor value based on its PEG Ratio (1.1x)
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 (4.6x).
Next Steps
Future Growth
How is Tower Semiconductor forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
41.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TSEM's forecast earnings growth (41.6% per year) is above the savings rate (2%).
Earnings vs Market: TSEM's earnings (41.6% per year) are forecast to grow faster than the US market (21.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TSEM's revenue (8.6% per year) is forecast to grow slower than the US market (10.6% per year).
High Growth Revenue: TSEM's revenue (8.6% 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 TSEM's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Tower Semiconductor performed over the past 5 years?
1.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TSEM has high quality earnings.
Growing Profit Margin: TSEM's current net profit margins (5.9%) are lower than last year (8.5%).
Past Earnings Growth Analysis
Earnings Trend: TSEM has become profitable over the past 5 years, growing earnings by 1.6% 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 (-32.9%) over the past year, making it difficult to compare to the Semiconductor industry average (20.8%).
Return on Equity
High ROE: TSEM's Return on Equity (5.2%) 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 ($258.8M).
Long Term Liabilities: TSEM's short term assets ($1.1B) exceed its long term liabilities ($312.3M).
Debt to Equity History and Analysis
Debt Level: TSEM's debt to equity ratio (16.8%) is considered satisfactory.
Reducing Debt: TSEM's debt to equity ratio has reduced from 78.8% to 16.8% over the past 5 years.
Debt Coverage: TSEM's debt is well covered by operating cash flow (115.7%).
Interest Coverage: TSEM earns more interest than it pays, so coverage of interest payments is not a concern.
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?
12.3yrs
Average management tenure
CEO
Russell C. Ellwanger (65 yo)
15.67yrs
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 15.67yrs | no data | no data | |
| CFO & Senior VP of Finance | 16.17yrs | no data | no data | |
| Chief Operating Officer | 6.42yrs | no data | no data | |
| Senior Vice President of Investor Relations & Corporate Communications | no data | no data | no data | |
| Senior VP | 12.33yrs | no data | no data | |
| Chief Marketing | no data | no data | no data | |
| Senior Vice President of Human Resources & Information Technology | no data | no data | no data | |
| President Emeritus | 12.33yrs | no data | no data | |
| Senior Vice President of Corporate Planning | 8.5yrs | no data | no data | |
| SVP & GM of Analog Business Unit and Newport Beach Site Manager | 8.58yrs | no data | no data | |
| Senior VP and GM of Sensors & Displays Business Unit | 16yrs | no data | no data | |
| Senior Vice President of Excellence | 0.92yr | no data | no data |
12.3yrs
Average Tenure
56yo
Average Age
Experienced Management: TSEM's management team is seasoned and experienced (12.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 15.67yrs | no data | no data | |
| Director | 0.33yr | no data | no data | |
| Independent Director | 4.75yrs | no data | no data | |
| Chairman of the Board | 12yrs | no data | no data | |
| Independent Director | 12.17yrs | no data | no data | |
| Independent Director | 11.92yrs | no data | no data | |
| Independent Director | 15.42yrs | no data | no data | |
| Independent Director | 11.75yrs | no data | no data | |
| Independent Director | no data | no data | no data | |
| Director | 0.33yr | no data | no 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$3.263b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TSEM | NasdaqGS (Nasdaq Global Select) | Yes | Ordinary Shares | US | USD | Oct 1994 |
| TOW | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Oct 1994 |
| TSEM | TASE (The Tel-Aviv Stock Exchange) | Yes | Ordinary Shares | IL | ILS | Oct 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/24 00:42 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.