Tower Semiconductor Ltd. (TSEM) 10-Year Financial Performance & Capital Metrics

TSEM • • Industrial / General

TechnologySemiconductorsSemiconductor Foundry & Packaging ServicesFoundry Services

AboutTower Semiconductor Ltd., an independent semiconductor foundry, manufactures and markets analog intensive mixed-signal semiconductor devices in the United States, Japan, other Asia countries, and Europe. It provides various customizable process technologies, including SiGe, BiCMOS, mixed signal/CMOS, RF CMOS, CMOS image sensor, integrated power management, and MEMS. The company also offers wafer fabrication services and design enablement platform for design cycle, as well as transfer optimization and development process services to integrated device manufacturers and fabless companies. It serves various markets, such as consumer electronics, personal computers, communications, automotive, industrial, aerospace, military, and medical device products. The company was incorporated in 1993 and is headquartered in Migdal Haemek, Israel.Show more

Revenue $1.44B +0.9%
EBITDA $458M -43.2%
Net Income $208M -59.9%
EPS (Diluted) 1.85 -60.3%
Gross Margin 23.64% -4.9%
EBITDA Margin 31.86% -43.7%
Operating Margin 13.32% -65.4%
Net Margin 14.47% -60.3%
ROE 8.2% -65.9%
ROIC 5.8% -70.2%
Debt/Equity 0.07 -28.2%
Interest Coverage 32.64 -73.5%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓Strong 5Y profit CAGR of 18.2%
✓Momentum leader: RS Rating 95 (top 5%)
✓High quality earnings: Operating CF exceeds net income
✓Good 3Y average ROE of 15.8%
✓Healthy 5Y average net margin of 16.6%

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y5.66%

5Y3.08%

3Y-1.62%

TTM8.03%

Profit (Net Income) CAGR

10Y47.5%

5Y18.21%

3Y11.49%

TTM-5.37%

EPS CAGR

10Y38.74%

5Y17.11%

3Y10.53%

TTM-7.03%

ROCE

10Y Avg12.31%

5Y Avg11.8%

3Y Avg14.99%

Latest7.04%

Peer Comparison

Foundry Services

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
TSEMTower Semiconductor Ltd.	13.94B	124.00	67.03	0.94%	12.92%	6.9%	0.09%	0.07
TSMTaiwan Semiconductor Manufacturing Company Limited	1.77T	341.64	1.53	33.89%	43.29%	31.22%	49.11%	0.24
UMCUnited Microelectronics Corporation	22.08B	8.77	0.47	4.39%	17.01%	11.12%	24.13%	0.19
GFSGLOBALFOUNDRIES Inc.	23.08B	41.53	-86.52	-8.69%	-0.65%	-0.37%	4.75%	0.21
SKYTSkyWater Technology, Inc.	1.55B	32.03	-228.79	19.39%	36.36%	63.09%	0.46%	1.21

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	960.56M	1.25B	1.39B	1.3B	1.23B	1.27B	1.51B	1.68B	1.42B	1.44B
Revenue Growth %	0.16%	0.3%	0.11%	-0.06%	-0.05%	0.03%	0.19%	0.11%	-0.15%	0.01%
Cost of Goods Sold+	755.2M	946.53M	1.03B	1.01B	1B	1.03B	1.18B	1.21B	1.07B	1.1B
COGS % of Revenue	0.79%	0.76%	0.74%	0.78%	0.81%	0.82%	0.78%	0.72%	0.75%	0.76%
Gross Profit+	205.37M	303.1M	354.31M	292.95M	229.67M	233.32M	329.12M	466.31M	353.52M	339.44M
Gross Margin %	0.21%	0.24%	0.26%	0.22%	0.19%	0.18%	0.22%	0.28%	0.25%	0.24%
Gross Profit Growth %	2.22%	0.48%	0.17%	-0.17%	-0.22%	0.02%	0.41%	0.42%	-0.24%	-0.04%
Operating Expenses+	124.46M	128.57M	134.46M	138M	142.96M	142.28M	162.61M	154.63M	-193.75M	148.13M
OpEx % of Revenue	0.13%	0.1%	0.1%	0.11%	0.12%	0.11%	0.11%	0.09%	-0.14%	0.1%
Selling, General & Admin	62.79M	65.44M	66.8M	64.95M	67.38M	63.97M	77.22M	80.28M	72.45M	74.96M
SG&A % of Revenue	0.07%	0.05%	0.05%	0.05%	0.05%	0.05%	0.05%	0.05%	0.05%	0.05%
Research & Development	61.67M	63.13M	67.66M	73.05M	75.58M	78.32M	85.39M	83.91M	79.81M	20.62M
R&D % of Revenue	0.06%	0.05%	0.05%	0.06%	0.06%	0.06%	0.06%	0.05%	0.06%	0.01%
Other Operating Expenses	-190K	0	0	0	0	0	0	-9.56M	-346.01M	52.54M
Operating Income+	81.89M	175.15M	219.84M	154.94M	86.72M	91.03M	166.51M	311.67M	547.26M	191.31M
Operating Margin %	0.09%	0.14%	0.16%	0.12%	0.07%	0.07%	0.11%	0.19%	0.38%	0.13%
Operating Income Growth %	1.79%	1.14%	0.26%	-0.3%	-0.44%	0.05%	0.83%	0.87%	0.76%	-0.65%
EBITDA+	249.93M	372.76M	428.25M	369.33M	301.19M	331.56M	437.22M	604.31M	805.28M	457.59M
EBITDA Margin %	0.26%	0.3%	0.31%	0.28%	0.24%	0.26%	0.29%	0.36%	0.57%	0.32%
EBITDA Growth %	0.79%	0.49%	0.15%	-0.14%	-0.18%	0.1%	0.32%	0.38%	0.33%	-0.43%
D&A (Non-Cash Add-back)	168.03M	197.61M	208.41M	214.39M	214.47M	240.53M	270.71M	292.64M	258.02M	266.28M
EBIT	80.9M	223.74M	214.39M	154.94M	97.84M	95.44M	162.41M	297.66M	589.29M	185.04M
Net Interest Income+	-14.97M	-17.33M	-8.47M	-12.12M	980K	-7.57M	-6.32M	7.91M	35.54M	49.63M
Interest Income	0	0	4.15M	10.76M	12.95M	8.48M	5.37M	13.6M	39.99M	55.49M
Interest Expense	14.97M	17.33M	12.62M	22.88M	11.97M	16.06M	11.69M	5.69M	4.44M	5.86M
Other Income/Expense	-123.3M	35.44M	-18.07M	-15.63M	4.3M	-2.35M	-11.41M	-19.7M	37.58M	26.11M
Pretax Income+	-41.41M	210.6M	201.77M	139.32M	91.02M	88.69M	155.1M	291.97M	584.84M	217.43M
Pretax Margin %	-0.04%	0.17%	0.15%	0.11%	0.07%	0.07%	0.1%	0.17%	0.41%	0.15%
Income Tax+	-12.28M	1.43M	-99.89M	5.94M	2.95M	5.4M	1.02M	25.5M	65.31M	10.21M
Effective Tax Rate %	0.72%	0.97%	1.48%	0.97%	0.99%	0.93%	0.97%	0.91%	0.89%	0.96%
Net Income+	-29.65M	203.92M	298.01M	135.58M	90.05M	82.3M	150.01M	264.57M	518.49M	207.86M
Net Margin %	-0.03%	0.16%	0.21%	0.1%	0.07%	0.07%	0.1%	0.16%	0.36%	0.14%
Net Income Growth %	-7.95%	7.88%	0.46%	-0.55%	-0.34%	-0.09%	0.82%	0.76%	0.96%	-0.6%
Net Income (Continuing)	-29.13M	209.17M	301.66M	133.38M	88.07M	83.29M	154.07M	266.47M	519.53M	207.22M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	-11.76M	-7.42M	-6.35M	-6.76M	-7.82M	-2.91M	-6.62M	-2.64M	-5.46M	-13.14M
EPS (Diluted)+	-0.40	2.09	2.90	1.32	0.84	0.76	1.37	2.39	4.66	1.85
EPS Growth %	-6.71%	6.22%	0.39%	-0.54%	-0.36%	-0.1%	0.8%	0.74%	0.95%	-0.6%
EPS (Basic)	-0.40	2.33	3.08	1.35	0.85	0.77	1.39	2.42	4.70	1.87
Diluted Shares Outstanding	74.37M	101.3M	105.95M	102.52M	107.44M	108.48M	109.8M	110.75M	111.22M	112.34M
Basic Shares Outstanding	74.37M	87.48M	96.65M	100.4M	106.26M	107.25M	108.28M	109.35M	110.29M	111.15M
Dividend Payout Ratio	-	0.01%	0.01%	-	-	-	-	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	446.73M	698M	874.33M	987.96M	1.09B	1.1B	1.2B	1.5B	1.71B	1.76B
Cash & Short-Term Investments	205.57M	389.38M	559.84M	641.02M	747.24M	710.1M	763.87M	1.01B	1.24B	1.22B
Cash Only	175.57M	355.28M	445.96M	385.09M	355.56M	211.68M	210.93M	340.76M	260.66M	271.89M
Short-Term Investments	30M	34.09M	113.87M	255.93M	391.68M	498.42M	552.94M	665.05M	974.53M	946.35M
Accounts Receivable	117.44M	155.67M	149.67M	157.41M	140.72M	186.7M	161.03M	177.47M	180.18M	240.76M
Days Sales Outstanding	44.63	45.47	39.38	44.06	41.62	53.84	38.97	38.61	46.23	61.19
Inventory	105.68M	137.53M	143.31M	170.78M	192.26M	199.13M	234.51M	302.11M	282.69M	268.3M
Days Inventory Outstanding	51.08	53.03	50.64	61.65	69.87	70.4	72.6	91.03	96.51	89.29
Other Current Assets	7.92M	8.81M	9.88M	8.58M	0	0	0	0	0	0
Total Non-Current Assets+	519.5M	681.89M	799.31M	802.02M	844.35M	991.23M	1.04B	1.05B	1.21B	1.32B
Property, Plant & Equipment	459.53M	616.69M	635.12M	657.23M	699.77M	858.16M	890.8M	972.61M	1.17B	1.29B
Fixed Asset Turnover	2.09x	2.03x	2.18x	1.98x	1.76x	1.47x	1.69x	1.72x	1.22x	1.11x
Goodwill	7M	7M	7M	7M	7M	7M	7M	7M	7M	7M
Intangible Assets	38.13M	31.67M	19.84M	16.73M	13.46M	10.96M	11.82M	9.84M	5.12M	5.77M
Long-Term Investments	11.74M	25.62M	26.07M	35.95M	40.09M	40.89M	32.03M	6.72M	6.78M	6.78M
Other Non-Current Assets	1.17M	-33.44M	0	11.65M	17.68M	16.42M	39.87M	23.47M	22.96M	4.38M
Total Assets+	966.22M	1.38B	1.67B	1.79B	1.93B	2.09B	2.23B	2.55B	2.92B	3.08B
Asset Turnover	0.99x	0.91x	0.83x	0.73x	0.64x	0.60x	0.68x	0.66x	0.49x	0.47x
Asset Growth %	0.09%	0.43%	0.21%	0.07%	0.08%	0.08%	0.07%	0.14%	0.15%	0.06%
Total Current Liabilities+	211.12M	247.12M	302.37M	203.72M	253.06M	272.91M	276.33M	387.39M	276.84M	285.06M
Accounts Payable	91.77M	99.26M	115.35M	104.33M	119.2M	96.94M	78.71M	150.93M	139.13M	130.62M
Days Payables Outstanding	44.36	38.28	40.76	37.66	43.32	34.27	24.37	45.48	47.5	43.47
Short-Term Debt	33.26M	48.08M	105.96M	10.81M	65.93M	106.51M	83.87M	62.27M	58.95M	48.38M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	17.98M	13.74M	7.32M	43.97M	7.02M	2.97M	5.74M	120.12M	1.89M	66.91M
Current Ratio	2.12x	2.82x	2.89x	4.85x	4.30x	4.04x	4.33x	3.86x	6.17x	6.18x
Quick Ratio	1.62x	2.27x	2.42x	4.01x	3.54x	3.31x	3.48x	3.08x	5.15x	5.23x
Cash Conversion Cycle	51.35	60.23	49.26	68.05	68.17	89.97	87.2	84.17	95.24	107.01
Total Non-Current Liabilities+	369.52M	450.15M	341.56M	350.05M	333.05M	366.33M	339.52M	271.68M	214.64M	155.24M
Long-Term Debt	211.05M	296.14M	215.9M	209.47M	195.92M	146.54M	118.62M	210.07M	88.36M	132.44M
Capital Lease Obligations	0	0	12.82M	36.38M	49.9M	137.23M	112.36M	0	84.25M	0
Deferred Tax Liabilities	69.74M	95.23M	63.92M	50.4M	45.24M	41.29M	23.96M	13.01M	10.22M	10.13M
Other Non-Current Liabilities	88.73M	16.9M	29.83M	25.66M	13.8M	15.83M	14.62M	7.71M	6.1M	4.99M
Total Liabilities	580.64M	697.27M	643.93M	553.77M	586.11M	639.25M	615.85M	659.07M	491.48M	440.31M
Total Debt+	290.13M	344.23M	334.68M	267.48M	311.75M	390.28M	314.84M	272.34M	231.56M	180.81M
Net Debt	114.56M	-11.06M	-111.28M	-117.61M	-43.81M	178.59M	103.91M	-68.42M	-29.1M	-91.08M
Debt / Equity	0.75x	0.50x	0.33x	0.22x	0.23x	0.27x	0.19x	0.14x	0.10x	0.07x
Debt / EBITDA	1.16x	0.92x	0.78x	0.72x	1.04x	1.18x	0.72x	0.45x	0.29x	0.40x
Net Debt / EBITDA	0.46x	-0.03x	-0.26x	-0.32x	-0.15x	0.54x	0.24x	-0.11x	-0.04x	-0.20x
Interest Coverage	5.47x	10.11x	17.42x	6.77x	7.25x	5.67x	14.24x	54.80x	123.15x	32.64x
Total Equity+	385.59M	682.61M	1.03B	1.24B	1.35B	1.45B	1.62B	1.89B	2.43B	2.64B
Equity Growth %	0.97%	0.77%	0.51%	0.2%	0.09%	0.08%	0.11%	0.17%	0.29%	0.09%
Book Value per Share	5.18	6.74	9.72	12.06	12.53	13.41	14.71	17.05	21.82	23.50
Total Shareholders' Equity	397.34M	690.03M	1.04B	1.24B	1.35B	1.46B	1.62B	1.89B	2.43B	2.65B
Common Stock	326.57M	369.06M	391.73M	418.49M	426.11M	431M	435.45M	440.15M	443.63M	446.56M
Retained Earnings	-1.27B	-1.07B	-773.02M	-637.45M	-547.4M	-465.46M	-315.45M	-50.88M	467.62M	675.48M
Treasury Stock	-9.07M	-9.07M	-9.07M	-9.07M	-9.07M	-9.07M	-9.07M	-9.07M	-9.07M	-9.07M
Accumulated OCI	-26.81M	-27.83M	-22.76M	-23.39M	-18.24M	108.25M	122.02M	-47.54M	149.41M	-74.19M
Minority Interest	-11.76M	-7.42M	-6.35M	-6.76M	-7.82M	-2.91M	-6.62M	-2.64M	-5.46M	-13.14M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	170.31M	327.47M	355.63M	312.9M	291.32M	276.56M	421.29M	529.82M	676.56M	448.68M
Operating CF Margin %	0.18%	0.26%	0.26%	0.24%	0.24%	0.22%	0.28%	0.32%	0.48%	0.31%
Operating CF Growth %	0.74%	0.92%	0.09%	-0.12%	-0.07%	-0.05%	0.52%	0.26%	0.28%	-0.34%
Net Income	-29.13M	209.17M	301.66M	133.38M	88.07M	82.3M	150.01M	264.57M	519.53M	207.22M
Depreciation & Amortization	168.03M	197.61M	208.41M	214.39M	214.47M	240.53M	270.71M	292.64M	258.02M	266.28M
Stock-Based Compensation	7.54M	9.41M	11.65M	12.66M	14.55M	0	0	0	0	0
Deferred Taxes	-4.17M	-4.56M	-108.46M	-5.35M	-14.55M	0	0	0	0	0
Other Non-Cash Items	88.16M	-9.17M	2.63M	2.44M	6M	12.85M	3.74M	19.2M	-8.68M	24.85M
Working Capital Changes	-72.84M	-27.95M	-169.92M	-27.52M	-17.23M	-59.12M	-3.17M	-46.59M	-92.31M	-49.67M
Change in Receivables	-11.12M	-30.1M	-6.56M	-3.1M	27.32M	-33.09M	14.34M	-15.23M	-3.16M	-60.17M
Change in Inventory	-17.91M	-22.07M	-4.28M	-26.34M	-21.02M	-2.89M	-44.19M	-77.89M	8.68M	4.78M
Change in Payables	-26.16M	5.55M	-8.65M	-3.56M	-339K	-18.58M	-25M	-20.89M	-8.25M	35.78M
Cash from Investing+	-195.49M	-226.72M	-245.36M	-328.22M	-305.09M	-363.61M	-338.94M	-329.45M	-720.85M	-400.24M
Capital Expenditures	-165.37M	-217.5M	-187.68M	-210.19M	-191.4M	-315.11M	-315.6M	-367.44M	-444.5M	-436.15M
CapEx % of Revenue	0.17%	0.17%	0.14%	0.16%	0.16%	0.25%	0.21%	0.22%	0.31%	0.3%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-119K	-9.23M	22.96M	25.91M	18.82M	0	0	0	11.71M	3.97M
Cash from Financing+	13.76M	73.33M	-23.32M	-48.13M	-17.56M	-61.19M	-76.86M	-66.65M	-30.41M	-32.45M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-1.57M	-2.56M	-4.38M	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	14.42M	38.8M	31.32M	714K	0	-25.36M	-35.39M	-26.85M	1.93M	0
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	4.94M	109.97M	167.96M	102.7M	99.92M	-37.09M	107.48M	163.42M	232.06M	12.53M
FCF Margin %	0.01%	0.09%	0.12%	0.08%	0.08%	-0.03%	0.07%	0.1%	0.16%	0.01%
FCF Growth %	-0.9%	21.28%	0.53%	-0.39%	-0.03%	-1.37%	3.9%	0.52%	0.42%	-0.95%
FCF per Share	0.07	1.09	1.59	1.00	0.93	-0.34	0.98	1.48	2.09	0.11
FCF Conversion (FCF/Net Income)	-5.74x	1.61x	1.19x	2.31x	3.24x	3.36x	2.81x	2.00x	1.30x	2.16x
Interest Paid	12.37M	10.54M	14.07M	11.84M	7.46M	0	0	0	4.52M	4.25M
Taxes Paid	3.47M	3.48M	17.67M	5.77M	13.03M	0	0	0	12.38M	23.49M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	-10.2%	38.18%	34.81%	11.97%	6.97%	5.88%	9.77%	15.1%	24.03%	8.2%
Return on Invested Capital (ROIC)	13.71%	22.42%	20.74%	11.41%	5.37%	4.65%	7.45%	13.21%	19.46%	5.8%
Gross Margin	21.38%	24.26%	25.54%	22.46%	18.61%	18.43%	21.82%	27.8%	24.85%	23.64%
Net Margin	-3.09%	16.32%	21.48%	10.4%	7.3%	6.5%	9.95%	15.77%	36.44%	14.47%
Debt / Equity	0.75x	0.50x	0.33x	0.22x	0.23x	0.27x	0.19x	0.14x	0.10x	0.07x
Interest Coverage	5.47x	10.11x	17.42x	6.77x	7.25x	5.67x	14.24x	54.80x	123.15x	32.64x
FCF Conversion	-5.74x	1.61x	1.19x	2.31x	3.24x	3.36x	2.81x	2.00x	1.30x	2.16x
Revenue Growth	16.01%	30.09%	11.02%	-6%	-5.37%	2.57%	19.16%	11.24%	-15.2%	0.94%

Frequently Asked Questions

Valuation & Price

Tower Semiconductor Ltd. (TSEM) has a price-to-earnings (P/E) ratio of 67.0x. This suggests investors expect higher future growth.

Growth & Financials

Tower Semiconductor Ltd. (TSEM) reported $1.51B in revenue for fiscal year 2024. This represents a 148% increase from $611.0M in 2011.

Tower Semiconductor Ltd. (TSEM) grew revenue by 0.9% over the past year. Growth has been modest.

Yes, Tower Semiconductor Ltd. (TSEM) is profitable, generating $195.5M in net income for fiscal year 2024 (14.5% net margin).

Dividend & Returns

Tower Semiconductor Ltd. (TSEM) has a return on equity (ROE) of 8.2%. This is below average, suggesting room for improvement.

Tower Semiconductor Ltd. (TSEM) generated $33.3M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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