Tower Semiconductor Ltd TSEM

What the company does

Tower Semiconductor Ltd is a large-cap company in the Technology sector (Semiconductors), with a market value of $25.9B, based in the USA.

Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms for integrated circuits in the United States, Japan, rest of Asia, and Europe. It provides customizable process technologies, including SiGe, SiPho, mixed signal CMOS, RF CMOS, CMOS image sensors, non-imaging sensors, wafers, and integrated power management. The company also offers a design enablement platform for a design cycle, as well as transfer optimization and development process services to integrated device manufacturers and fabless companies.

Cheap or expensive? relatively expensive

Its price-to-earnings (P/E) is 90.4 versus 43.5 for the median of the Technology sector in our universe (65 companies) — relatively expensive.

Revenue is growing 24% a year — the market is paying ahead for that growth. If it slows, the high multiple becomes the risk.

On analysts' next-year forecasts the multiple drops to 38.5 — they expect higher earnings.

The average analyst price target is 312.93, 37% above the current price (their view, not ours).

The stock sits at 63% of its one-year range (0% = the low, 100% = the high).

The risks

• • More cash leaves than comes in (negative free cash flow).
• • The stock is more volatile than average (beta 0.9) — big daily moves both ways.

Strengths

• ✅ Profitable — 20 of every 100 dollars of revenue stays as profit.
• ✅ More cash than debt.
• ✅ Most analysts rate it buy (8 vs 0).
• ✅ Revenue is growing 24% a year.

What changed this week

Over the past week the stock fell 5.0% (for comparison: S&P 500 +1.2%, sector ETF XLK -0.5%).

No notable news about the company was found in the past week.

What changed since last week

This is the first summary for this stock; from next week this section shows what changed.