Tower Semiconductor Intrinsic Value – TOWER SEMICONDUCTOR Reports 16.2% Decrease in Total Revenue for Q2 2023
August 28, 2023
🌥️Earnings Overview
TOWER SEMICONDUCTOR ($NASDAQ:TSEM) reported its total revenue for the quarter ending June 30, 2023 as USD 357.2 million, a 16.2% decrease from the same period in the prior year. Net income for the quarter was also down 11.9% year over year, at USD 51.2 million.
Analysis – Tower Semiconductor Intrinsic Value
GoodWhale conducted an extensive analysis of TOWER SEMICONDUCTOR‘s wellbeing. Our proprietary Valuation Line found that the intrinsic value of TOWER SEMICONDUCTOR share is around $36.2. This is an indication that the stock market is accurately assessing the value of the company, as the current market price of TOWER SEMICONDUCTOR stock is traded at $36.7, a fair price that is slightly overvalued by 1.4%. Therefore, our assessment is that current investors of TOWER SEMICONDUCTOR may be getting a reasonable return on their investment. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Tower Semiconductor. More…
| Total Revenues | Net Income | Net Margin |
| 1.54k | 275.05 | 16.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Tower Semiconductor. More…
| Operations | Investing | Financing |
| 467.22 | -261.75 | -68.53 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Tower Semiconductor. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.53k | 522.97 | 17.17 |
Key Ratios Snapshot
Some of the financial key ratios for Tower Semiconductor are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.9% | 51.0% | 17.6% |
| FCF Margin | ROE | ROA |
| 3.9% | 9.0% | 6.7% |
Peers
The semiconductor industry is highly competitive, with companies vying for market share in a constantly evolving marketplace. Tower Semiconductor Ltd is no exception, and competes against a number of other companies in the space, including RDC Semiconductor Co Ltd, X-FAB Silicon Foundries SE, and Etrend Hightech Corp. While each company has its own strengths and weaknesses, Tower has been able to compete effectively by offering a broad range of products and services, and a commitment to customer satisfaction.
– RDC Semiconductor Co Ltd ($TPEX:3228)
RDC Semiconductor Co Ltd is a Chinese semiconductor company with a market cap of 12.41B as of 2022. The company has a Return on Equity of 8.98%. RDC Semiconductor Co Ltd is a leading provider of semiconductor solutions for the automotive, industrial, and consumer markets. The company’s products include power management ICs, LED drivers, MOSFETs, and diodes. RDC Semiconductor Co Ltd is headquartered in Shenzhen, China.
– X-FAB Silicon Foundries SE ($OTCPK:XFABF)
As of 2022, X-FAB Silicon Foundries SE has a market cap of 885.71M. The company has a Return on Equity of 4.97%.
X-FAB is a leading analog/mixed-signal and specialty foundry group manufacturing silicon wafers for the semiconductor industry. The company provides foundry services to customers worldwide who design, develop and produce analog-intensive, mixed-signal integrated circuits (ICs) inleading-edge technologies.
– Etrend Hightech Corp ($TPEX:3567)
Etrend Hightech Corp is a leading provider of high-tech products and services. It has a market cap of 831.87 million as of 2022 and a return on equity of 13.69%. The company provides innovative products and services that enable its customers to stay ahead of the competition. Its products and services include high-speed Internet, VoIP, video conferencing, and more.
Summary
TOWER SEMICONDUCTOR reported total revenue of USD 357.2 million and net income of USD 51.2 million for the second quarter of 2023, both showing a year-over-year decline of 16.2% and 11.9%, respectively. Despite this weaker result, investor sentiment was positive, as the stock price moved up on the day of the earnings announcement. Investors appear to be encouraged by the company’s ability to contain costs, with strong cash flow management and cost controls allowing TOWER SEMICONDUCTOR to improve profitability despite the revenue decline. Going forward, investors will be watching to see if the company can sustain profitability as demand for its products recovers.
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