Tower Semiconductor Stock Analysis, Valuation (NASDAQ:TSEM)

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$25.02 $0.04 (0.16%) TSEM stock closing price Aug 18, 2017 (Closing)
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Tower Semiconductor
Updated on : Aug 18, 2017
previous close
TSEM 25 (0%)
NASDAQ 6216.5 (0%)
Closing Price On: Aug 18, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Electronics-Semiconductors
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q2
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
16%
Sector Average:
5.9%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
352.9M
Debt/Equity Ratio:
 0.43
Compared to the industry
Cash Flow
Operating cash flow:
$84.3M
Net Income:
$50M
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
TSEM PS :
1.8
Industry PS :
2.6
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
30.8%
Return on Equity:
28.4%
Free Cash Flow Margin:
12.5%
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Tower Semiconductor Analysis Video

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View Tower Semiconductor stock analysis video. This is our TSEM analyst opinion covering the buy and sell arguments for TSEM stock.

Tower Semiconductor Ltd. (USA) Stock Rating (4/5)

Our Tower Semiconductor stock opinion is based on fundamentals of the company. This Tower Semiconductor stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy TSEM stock?

  • Tower Semiconductor's revenue growth came in at 13.1% in 2017 Q2.
  • The TTM operating margin was good at 16% for Tower Semiconductor.
  • LTM Net margins were good at 14.5% for Tower Semiconductor.
  • The company has an operating cash flow which is 1.7 times the net income.
  • TSEM stock is trading at an earnings multiple of 12.3 which is better than the industry average of 24.6.
  • The lower PS ratio 1.8 for TSEM stock versus Electronics-Semiconductors industry average of 2.6 is a positive for the company.
  • Tower Semiconductor has an attractive ROIC (Return on Invested Capital) of 30.8%
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Tower Semiconductor at 28.4%.
  • The company has a good Free Cash Flow (FCF) margin of 12.5%.

Should you sell TSEM stock?

  • With a debt/equity ratio of  0.43, Tower Semiconductor is highly leveraged in comparison to Computer and Technology peers.

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