Tower Semiconductor Ltd. (TSEM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Cirrus Logic, Inc.

Amkor Technology, Inc.

Tower Semiconductor Ltd.

Silicon Laboratories, Inc.

Diodes, Inc.

IPG Photonics Corp.

Shoals Technologies Group, Inc.

Power Integrations, Inc.

Synaptics, Inc.

Wolfspeed, Inc.

Array Technologies, Inc.

Why is Tower Semiconductor Ltd. ?

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

The company is Net-Debt Free

With a growth in Operating Profit of 32.61%, the company declared Very Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at USD 835.5 MM
NET PROFIT(HY) At USD 145.16 MM has Grown at 52.36%
INVENTORY TURNOVER RATIO(HY) Highest at 4.6 times

With ROE of 7.50%, it has a fair valuation with a 6.59 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 619.01%, its profits have risen by 8.6% ; the PEG ratio of the company is 11.1

High Institutional Holdings at 73.59%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 2.69% over the previous quarter.

Market Beating performance in long term as well as near term

Along with generating 619.01% 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 Report

Verdict Report

How 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.

619.01%

9.33

69.12%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.35%

EBIT Growth (5y)

16.36%

EBIT to Interest (avg)

84.87

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

0.52

Tax Ratio

8.55%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

73.59%

ROCE (avg)

14.73%

ROE (avg)

9.15%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.59

EV to EBIT

93.72

EV to EBITDA

39.88

EV to Capital Employed

9.64

EV to Sales

11.62

PEG Ratio

11.14

Dividend Yield

ROCE (Latest)

10.28%

ROE (Latest)

7.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 835.5 MM

NET PROFIT(HY)

At USD 145.16 MM has Grown at 52.36%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.6 times

RAW MATERIAL COST(Y)

Fallen by -32.89% (YoY

CASH AND EQV(HY)

Highest at USD 2,650.46 MM

DEBT-EQUITY RATIO (HY)

Lowest at -45.15 %

OPERATING PROFIT(Q)

Highest at USD 147.49 MM

OPERATING PROFIT MARGIN(Q)

Highest at 35.66 %

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Tower Semiconductor Ltd.

Net Profit

At USD 145.16 MM has Grown at 52.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Inventory Turnover Ratio

Highest at 4.6 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Cash Flow

Highest at USD 835.5 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Operating Profit

Highest at USD 147.49 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 35.66 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at USD 2,650.46 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -45.15 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -32.89% (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

Depreciation

Highest at USD 82.93 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Depreciation

At USD 82.93 MM has Grown at 125.14%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)