Tower Semiconductor Stock Analysis, Valuation (NASDAQ:TSEM)

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$33.27 $0.09 (0.27%) TSEM stock closing price Feb 16, 2018 (Closing)
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Tower Semiconductor
Updated on : Feb 16, 2018
previous close
TSEM 33.3 (0%)
NASDAQ 7239.5 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Electronics-Semiconductors
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
16.1%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
341.1M
Debt/Equity Ratio:
 0.39
Compared to the industry
Cash Flow
Operating cash flow:
$103.9M
Net Income:
$55.3M
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
TSEM PS :
2.4
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
30.6%
Return on Equity:
26.5%
Free Cash Flow Margin:
17.5%
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Tower Semiconductor Stock Analysis

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Investors can watch the Amigobulls Tower Semiconductor stock analysis video here. Our analyst opinion covering the buy and sell arguments for TSEM stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

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

Amigobulls TSEM stock analysis uses latest quarter 2017 Q3 financial data like Tower Semiconductor revenue growth, profit margins and cash flows. We also use relative valuation metrics like PE ratio and price to sales ratio for Tower Semiconductor valuation analysis. Tower Semiconductor stock rating is our opinion about the business fundamentals of the company.

Should you buy TSEM stock?

  • Tower Semiconductor had a healthy average operating margin of 16.1% over the last 4 quarters.
  • Net margins stood at a healthy 14.5% (average) for Tower Semiconductor in the Trailing Twelve Months.
  • The company has an operating cash flow which is 1.9 times the net income. We see this as a positive signal.
  • TSEM stock is trading at an earnings multiple of 15.5 which is better than the industry average of 25.7.
  • Tower Semiconductor has an attractive ROIC (Return on Invested Capital) of 30.6%
  • Tower Semiconductor has a good Return On Equity (ROE) of 26.5%.
  • The company has a good Free Cash Flow (FCF) margin of 17.5%.

Should you sell TSEM stock?

  • Tower Semiconductor has a debt/equity ratio of  0.39, which is worse than the average in the Computer and Technology sector.

Comments on this video and Tower Semiconductor stock

Investors can use Amigobulls Tower Semiconductor stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamentals of a company give detailed information which helps in making invesment decisions.

Among the financials of the company, Tower Semiconductor revenue growth along with the profit or net income give a clear picture of the financial health. Investors could make use of TSEM technical analysis to check whether the fundamental story is reflected in the market sentiment.