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The Futility of Tower Semiconductor Ltd. (NASDAQ:TSEM)’s Fundamentals

Tower Semiconductor Ltd. (NASDAQ:TSEM) previous close was $27.58 while the outstanding shares total 107.94M. The firm has a beta of 1.37, a 12-month trailing P/E ratio of 32.23, and a growth ratio of 2.15. TSEM’s shares traded higher over the last trading session, gaining 0.51% on 06/17/21. The shares fell to a low of $27.23 before closing at $27.72. Intraday shares traded counted 0.56 million, which was -47.06% lower than its 30-day average trading volume of 380.25K. The stock’s Relative Strength Index (RSI) is 52.89, with weekly volatility at 1.92% and ATR at 0.72. The TSEM stock’s 52-week price range has touched low of $17.61 and a $34.45 high.

Investors have identified the Semiconductors company Tower Semiconductor Ltd. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $2.93 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Tower Semiconductor Ltd. (TSEM) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For TSEM, the company has in raw cash 215.58 million on their books with 101.3 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 1.1 billion total, with 273.56 million as their total liabilities.

TSEM were able to record 38.0 million as free cash flow during the 08/05/2021 quarter of the year, this saw their quarterly net cash flow reduce by 3.9 million. In cash movements, the company had a total of 87.41 million as operating cash flow.

Potential earnings growth for Tower Semiconductor Ltd. (TSEM)

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 277.4 million trying to sell their products during the last quarter, with the result yielding a gross income of 69.81 million. This allows shareholders to hold on to 107.94M with the recently reported earning now reading 0.28 cents per share. This is a figure that compared to analyst’s prediction for their 08/05/2021 (0.27 cents a share).

Having a look at the company’s valuation, the company is expected to record 1.56 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on TSEM sounds very interesting.

Is the stock of TSEM attractive?

In the last 6 months, insiders have changed their ownership in shares of company stock by 19.60%.

3 out of 3 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on Tower Semiconductor Ltd.. 0 analysts has assigned a Sell rating on the TSEM stock. The 12-month mean consensus price target for the company’s shares has been set at $36.68.

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