ScoreWhy is Tower Semiconductor Ltd. ?
1
Poor Management Efficiency with a low ROE of 9.15%
- The company has been able to generate a Return on Equity (avg) of 9.15% signifying low profitability per unit of shareholders funds
2
Company has a low Debt to Equity ratio (avg) at times
3
Positive results in Dec 25
- RAW MATERIAL COST(Y) Fallen by -20.02% (YoY)
- INVENTORY TURNOVER RATIO(HY) Highest at 4.58 times
- NET SALES(Q) Highest at USD 440.21 MM
4
With ROE of 7.54%, it has a expensive valuation with a 5.33 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 328.80%, its profits have risen by 8.6% ; the PEG ratio of the company is 8.9
5
High Institutional Holdings at 70.9%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Market Beating performance in long term as well as near term
- Along with generating 328.80% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Tower Semiconductor Ltd. should be less than 10%
- Overall Portfolio exposure to Other Electrical Equipment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Tower Semiconductor Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Tower Semiconductor Ltd.
328.8%
5.32
61.11%
S&P 500
14.9%
0.77
19.29%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.35%
EBIT Growth (5y)
16.36%
EBIT to Interest (avg)
84.87
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.38
Sales to Capital Employed (avg)
0.52
Tax Ratio
8.55%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
70.90%
ROCE (avg)
14.73%
ROE (avg)
9.15%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
71
Industry P/E
Price to Book Value
5.33
EV to EBIT
74.66
EV to EBITDA
31.77
EV to Capital Employed
7.57
EV to Sales
9.26
PEG Ratio
8.92
Dividend Yield
NA
ROCE (Latest)
10.14%
ROE (Latest)
7.54%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Bullish
Bullish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -20.02% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 4.58 times
NET SALES(Q)
Highest at USD 440.21 MM
PRE-TAX PROFIT(Q)
Highest at USD 81.56 MM
NET PROFIT(Q)
Highest at USD 80.13 MM
EPS(Q)
Highest at USD 0.7
-3What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at -34.1 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.76 times
OPERATING PROFIT MARGIN(Q)
Lowest at 24.46 %
Here's what is working for Tower Semiconductor Ltd.
Net Sales
Highest at USD 440.21 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Pre-Tax Profit
Highest at USD 81.56 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 81.56 MM has Grown at 52.78%
over average net sales of the previous four periods of USD 53.39 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 80.13 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD 80.13 MM has Grown at 63.97%
over average net sales of the previous four periods of USD 48.87 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.7
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Inventory Turnover Ratio
Highest at 4.58 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -20.02% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Tower Semiconductor Ltd.
Operating Profit Margin
Lowest at 24.46 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debt-Equity Ratio
Highest at -34.1 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 6.76 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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