Tower Semiconductor Stock Analysis, Valuation (NASDAQ:TSEM)

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$29.9 $0.24 (0.81%) TSEM stock closing price Sep 22, 2017 (Closing)
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Tower Semiconductor
Updated on : Sep 22, 2017
previous close
TSEM 29.9 (0%)
NASDAQ 6426.9 (0%)
Closing Price On: Sep 22, 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:
5.8%
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 :
2.1
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
30.3%
Return on Equity:
28.4%
Free Cash Flow Margin:
12.5%
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Tower Semiconductor Stock Analysis

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

Tower Semiconductor Ltd. (USA) Stock Rating 3.9/5

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?

  • The Year Over Year (YoY) revenue growth for Tower Semiconductor was 13.1% in 2017 Q2.
  • Tower Semiconductor's average operating margin of 16% was exceptional.
  • 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. We see this as a positive signal.
  • The price to earnings multiple of 14.7 is attractive when compared with the industry average PE ratio of 26.
  • TSEM stock is trading at a favorable price to sales multiple of 2.1 as against the Electronics-Semiconductors industry average multiple of 2.7.
  • Tower Semiconductor generates a high return on invested capital of 30.3%.
  • 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 healthy free cash flow 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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