Simple Concepts Research Group

Tech Bargains Worth Watching: Tower Semiconductor (TSEM)

by | Oct 1, 2021 | Stock Picks

Tower Semiconductor (TSEM)

Company Overview & Stock Price Forecast

This article provides a brief analysis and stock rating for Tower Semiconductor (TSEM) including an updated stock price target. Additional data on the company’s earnings yield, price/earnings ratio, return on invested capital and YTD performance are discussed as well.

Tower Semiconductor Fundamentals

Tower Semiconductor Stock Rating

Stock Price Target: $41.02

In the sections below, we discuss the earnings yield, price-to-earnings ratio, price-to-sales ratio, return on invested capital and other important metrics that make Tower Semiconductor a company worth keeping an eye on.

Tower Semiconductor is a Mid-Cap company with a Market Cap of 3.2B.

Earnings Yield

TSEMSemiconductor Ind.S&P 500T-Bill (10Y)

The current earnings yield for Tower Semiconductor is 14.34%, in comparison to 2.98% for the S&P 500 and 1.48% for the 10-year treasury bond. The median earnings yield for the Semiconductor industry is 4.99%.

P/E Ratio

TSEMSemiconductor Ind.S&P 500

Tower Semiconductor is currently trading at a P/E of 30.96. The P/E for the Semiconductor industry is 30.33. The P/E for the S&P 500 is 33.60.


TSEMSemiconductor Ind.S&P 500

Tower Semiconductor is currently trading at a P/S of 2.42. The P/S for the Semiconductor industry is 6.71. The P/S for the S&P 500 is 3.09.


TSEMSemiconductor Ind.S&P 500

Tower Semiconductor is trading at a P/B of 2.24. The P/B for the Semiconductor industry is 6.87. The P/B for the S&P 500 is 4.59.

Return on Invested Capital (ROIC)

TSEMSemiconductor Ind.S&P 500

Tower Semiconductor’s ROIC is 6.17% in comparison to 22.92% for the Semiconductor industry and 8.6% for the S&P 500.

YTD Performance

TSEMSemiconductor Ind.S&P 500

The YTD performance for Tower Semiconductor is 64.71%. The Semiconductor industry has a YTD performance of 18.39% in comparison to the YTD S&P 500 performance of 14.68%.

News & Financial Reporting

  • Q2 2021 revenue of $362 million (record revenue for the company), YoY 26% organic growth and 17% total growth
  • Significant YoY increases in gross profit, operating profit, and net profit
  • Q3 2021 projection of of $385 million in revenue
  • Increasing expansion plan capacity by $100 million to support an increase in customers’ demand for highly differentiated 200mm platforms
  • Established partnership with ST Microelectronics

Stock Price Target: $41.02

Company Overview

Tower Semiconductor Stock Rating

Tower Semiconductor is an independent semiconductor company that manufactures and markets analog intensive mixed-signal semiconductor devices in the US, Japan, Asia and Europe. The company offers various customizable process technologies, including SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, integrated power management and MEMS.

Tower also provides wafer fabrication services, a design platform and transfer optimization and development process services to device manufacturers. It serves consumers in a variety of markets, such as consumer electronics, personal computers, communications, automotive, industrial and medical device products.

The company was incorporated in 1993 and is headquartered in Israel. The current CEO is Russell Ellwanger.

Additional Financials

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This material is provided for informational purposes only and is not financial advice. The information contained herein should not solely be used for the formation of an investment decision, whether you are a long term or short term investor.