TOWER SEMICONDUCTOR LTD (TSEM) Fundamental Analysis & Valuation

NASDAQ:TSEM • IL0010823792

Current stock price

171.36 USD
-3.32 (-1.9%)
Last:

This TSEM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. TSEM Profitability Analysis

1.1 Basic Checks

  • In the past year TSEM was profitable.
  • In the past year TSEM had a positive cash flow from operations.
  • Each year in the past 5 years TSEM has been profitable.
  • Each year in the past 5 years TSEM had a positive operating cash flow.
TSEM Yearly Net Income VS EBIT VS OCF VS FCFTSEM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 6.64%, TSEM is in the better half of the industry, outperforming 73.04% of the companies in the same industry.
  • TSEM's Return On Equity of 7.59% is fine compared to the rest of the industry. TSEM outperforms 66.09% of its industry peers.
  • TSEM's Return On Invested Capital of 5.02% is fine compared to the rest of the industry. TSEM outperforms 64.35% of its industry peers.
  • TSEM had an Average Return On Invested Capital over the past 3 years of 5.42%. This is significantly below the industry average of 10.70%.
Industry RankSector Rank
ROA 6.64%
ROE 7.59%
ROIC 5.02%
ROA(3y)10.38%
ROA(5y)9.65%
ROE(3y)12.25%
ROE(5y)12%
ROIC(3y)5.42%
ROIC(5y)6.81%
TSEM Yearly ROA, ROE, ROICTSEM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • Looking at the Profit Margin, with a value of 14.08%, TSEM is in the better half of the industry, outperforming 73.04% of the companies in the same industry.
  • TSEM's Profit Margin has improved in the last couple of years.
  • TSEM has a better Operating Margin (12.40%) than 69.57% of its industry peers.
  • In the last couple of years the Operating Margin of TSEM has grown nicely.
  • Looking at the Gross Margin, with a value of 23.23%, TSEM is doing worse than 75.65% of the companies in the same industry.
  • TSEM's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 12.4%
PM (TTM) 14.08%
GM 23.23%
OM growth 3Y-11.7%
OM growth 5Y11.51%
PM growth 3Y-3.72%
PM growth 5Y16.71%
GM growth 3Y-5.8%
GM growth 5Y4.74%
TSEM Yearly Profit, Operating, Gross MarginsTSEM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. TSEM Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TSEM is destroying value.
  • The number of shares outstanding for TSEM has been increased compared to 1 year ago.
  • TSEM has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, TSEM has an improved debt to assets ratio.
TSEM Yearly Shares OutstandingTSEM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
TSEM Yearly Total Debt VS Total AssetsTSEM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • TSEM has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
  • With a decent Debt to Equity ratio value of 0.05, TSEM is doing good in the industry, outperforming 60.87% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF N/A
Altman-Z N/A
ROIC/WACC0.41
WACC12.17%
TSEM Yearly LT Debt VS Equity VS FCFTSEM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • TSEM has a Current Ratio of 6.48. This indicates that TSEM is financially healthy and has no problem in meeting its short term obligations.
  • TSEM's Current ratio of 6.48 is amongst the best of the industry. TSEM outperforms 80.87% of its industry peers.
  • TSEM has a Quick Ratio of 5.51. This indicates that TSEM is financially healthy and has no problem in meeting its short term obligations.
  • TSEM's Quick ratio of 5.51 is amongst the best of the industry. TSEM outperforms 82.61% of its industry peers.
Industry RankSector Rank
Current Ratio 6.48
Quick Ratio 5.51
TSEM Yearly Current Assets VS Current LiabilitesTSEM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. TSEM Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 6.05% over the past year.
  • The Earnings Per Share has been growing by 19.39% on average over the past years. This is quite good.
  • The Revenue has grown by 9.05% in the past year. This is quite good.
  • Measured over the past years, TSEM shows a small growth in Revenue. The Revenue has been growing by 4.35% on average per year.
EPS 1Y (TTM)6.05%
EPS 3Y-3.66%
EPS 5Y19.39%
EPS Q2Q%32.2%
Revenue 1Y (TTM)9.05%
Revenue growth 3Y-2.27%
Revenue growth 5Y4.35%
Sales Q2Q%13.69%

3.2 Future

  • TSEM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.98% yearly.
  • Based on estimates for the next years, TSEM will show a very strong growth in Revenue. The Revenue will grow by 21.45% on average per year.
EPS Next Y32.51%
EPS Next 2Y47.6%
EPS Next 3Y41.85%
EPS Next 5Y13.98%
Revenue Next Year16.22%
Revenue Next 2Y22.44%
Revenue Next 3Y21.45%
Revenue Next 5YN/A

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
TSEM Yearly Revenue VS EstimatesTSEM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B 2B 2.5B
TSEM Yearly EPS VS EstimatesTSEM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6

More info and screens

Find the best growth stocksShow best growing peers

2

4. TSEM Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 75.16 indicates a quite expensive valuation of TSEM.
  • TSEM's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 25.23. TSEM is valued rather expensively when compared to this.
  • With a Price/Forward Earnings ratio of 56.72, TSEM can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TSEM is on the same level as its industry peers.
  • TSEM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.51.
Industry RankSector Rank
PE 75.16
Fwd PE 56.72
TSEM Price Earnings VS Forward Price EarningsTSEM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • 65.22% of the companies in the same industry are more expensive than TSEM, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 35.69
TSEM Per share dataTSEM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20 25

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • TSEM has a very decent profitability rating, which may justify a higher PE ratio.
  • TSEM's earnings are expected to grow with 41.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.31
PEG (5Y)3.88
EPS Next 2Y47.6%
EPS Next 3Y41.85%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. TSEM Dividend Analysis

5.1 Amount

  • No dividends for TSEM!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

TSEM Fundamentals: All Metrics, Ratios and Statistics

TOWER SEMICONDUCTOR LTD

NASDAQ:TSEM (3/27/2026, 1:21:53 PM)

171.36

-3.32 (-1.9%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-11
Earnings (Next)05-12
Inst Owners74.01%
Inst Owner Change1.39%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap19.28B
Revenue(TTM)1.57B
Net Income(TTM)220.47M
Analysts80
Price Target143.96 (-15.99%)
Short Float %1.58%
Short Ratio0.85
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.01%
Min EPS beat(2)0.23%
Max EPS beat(2)11.8%
EPS beat(4)4
Avg EPS beat(4)9.3%
Min EPS beat(4)0.23%
Max EPS beat(4)16.71%
EPS beat(8)8
Avg EPS beat(8)10.41%
EPS beat(12)10
Avg EPS beat(12)5.03%
EPS beat(16)14
Avg EPS beat(16)6.48%
Revenue beat(2)0
Avg Revenue beat(2)-1.71%
Min Revenue beat(2)-1.87%
Max Revenue beat(2)-1.54%
Revenue beat(4)0
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)-1.54%
Revenue beat(8)0
Avg Revenue beat(8)-1.73%
Revenue beat(12)0
Avg Revenue beat(12)-1.64%
Revenue beat(16)1
Avg Revenue beat(16)-1.52%
PT rev (1m)13.39%
PT rev (3m)40.34%
EPS NQ rev (1m)3.69%
EPS NQ rev (3m)3.69%
EPS NY rev (1m)3.06%
EPS NY rev (3m)3.49%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)0.54%
Valuation
Industry RankSector Rank
PE 75.16
Fwd PE 56.72
P/S 12.31
P/FCF N/A
P/OCF 48.76
P/B 6.64
P/tB 6.64
EV/EBITDA 35.69
EPS(TTM)2.28
EY1.33%
EPS(NY)3.02
Fwd EY1.76%
FCF(TTM)-0.37
FCFYN/A
OCF(TTM)3.51
OCFY2.05%
SpS13.92
BVpS25.81
TBVpS25.81
PEG (NY)2.31
PEG (5Y)3.88
Graham Number36.39
Profitability
Industry RankSector Rank
ROA 6.64%
ROE 7.59%
ROCE 6.35%
ROIC 5.02%
ROICexc 8.05%
ROICexgc 8.05%
OM 12.4%
PM (TTM) 14.08%
GM 23.23%
FCFM N/A
ROA(3y)10.38%
ROA(5y)9.65%
ROE(3y)12.25%
ROE(5y)12%
ROIC(3y)5.42%
ROIC(5y)6.81%
ROICexc(3y)9.54%
ROICexc(5y)12.07%
ROICexgc(3y)9.6%
ROICexgc(5y)12.19%
ROCE(3y)6.86%
ROCE(5y)8.62%
ROICexgc growth 3Y-27.29%
ROICexgc growth 5Y4.1%
ROICexc growth 3Y-26.99%
ROICexc growth 5Y4.44%
OM growth 3Y-11.7%
OM growth 5Y11.51%
PM growth 3Y-3.72%
PM growth 5Y16.71%
GM growth 3Y-5.8%
GM growth 5Y4.74%
F-Score6
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF N/A
Debt/EBITDA 0.27
Cap/Depr 144.03%
Cap/Sales 27.88%
Interest Coverage 250
Cash Conversion 79.53%
Profit Quality N/A
Current Ratio 6.48
Quick Ratio 5.51
Altman-Z N/A
F-Score6
WACC12.17%
ROIC/WACC0.41
Cap/Depr(3y)160.03%
Cap/Depr(5y)144.25%
Cap/Sales(3y)29.83%
Cap/Sales(5y)26.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.05%
EPS 3Y-3.66%
EPS 5Y19.39%
EPS Q2Q%32.2%
EPS Next Y32.51%
EPS Next 2Y47.6%
EPS Next 3Y41.85%
EPS Next 5Y13.98%
Revenue 1Y (TTM)9.05%
Revenue growth 3Y-2.27%
Revenue growth 5Y4.35%
Sales Q2Q%13.69%
Revenue Next Year16.22%
Revenue Next 2Y22.44%
Revenue Next 3Y21.45%
Revenue Next 5YN/A
EBIT growth 1Y4.93%
EBIT growth 3Y-13.7%
EBIT growth 5Y16.37%
EBIT Next Year195.71%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-427.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-11.86%
OCF growth 3Y-9.29%
OCF growth 5Y7.41%

TOWER SEMICONDUCTOR LTD / TSEM Fundamental Analysis FAQ

What is the ChartMill fundamental rating of TOWER SEMICONDUCTOR LTD (TSEM) stock?

ChartMill assigns a fundamental rating of 5 / 10 to TSEM.


Can you provide the valuation status for TOWER SEMICONDUCTOR LTD?

ChartMill assigns a valuation rating of 2 / 10 to TOWER SEMICONDUCTOR LTD (TSEM). This can be considered as Overvalued.


How profitable is TOWER SEMICONDUCTOR LTD (TSEM) stock?

TOWER SEMICONDUCTOR LTD (TSEM) has a profitability rating of 6 / 10.


What is the earnings growth outlook for TOWER SEMICONDUCTOR LTD?

The Earnings per Share (EPS) of TOWER SEMICONDUCTOR LTD (TSEM) is expected to grow by 32.51% in the next year.


Is the dividend of TOWER SEMICONDUCTOR LTD sustainable?

The dividend rating of TOWER SEMICONDUCTOR LTD (TSEM) is 0 / 10 and the dividend payout ratio is 0%.