As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Tower Semiconductor Ltd. (NASDAQ:TSEM), it is a company that has been able to sustain great financial health, trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Tower Semiconductor here.
Flawless balance sheet and good value
TSEM is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that TSEM manages its cash and cost levels well, which is a key determinant of the company’s health. TSEM's has produced operating cash levels of 0.96x total debt over the past year, which implies that TSEM's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. TSEM's share price is trading below its true value according to its price-to-earnings ratio of 17.2x compared to its industry as well as the wider stock market, which means it is relatively cheaper than its peers.
For Tower Semiconductor, I've compiled three fundamental aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for TSEM’s future growth? Take a look at our free research report of analyst consensus for TSEM’s outlook.
- Historical Performance: What has TSEM's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TSEM? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.