TOWER SEMICONDUCTOR LTD (TSEM) Fundamental Analysis & Valuation

NASDAQ:TSEM • IL0010823792

Current stock price

171.92 USD
-2.76 (-1.58%)
At close:
170.25 USD
-1.67 (-0.97%)
After Hours:

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.
  • TSEM had a positive operating cash flow in the past year.
  • In the past 5 years TSEM has always been profitable.
  • In the past 5 years TSEM always reported a positive cash flow from operatings.
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

  • TSEM has a Return On Assets of 6.64%. This is in the better half of the industry: TSEM outperforms 73.04% of its industry peers.
  • TSEM has a Return On Equity of 7.59%. This is in the better half of the industry: TSEM outperforms 66.09% of its industry peers.
  • With a decent Return On Invested Capital value of 5.02%, TSEM is doing good in the industry, outperforming 64.35% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for TSEM 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's Operating Margin of 12.40% is fine compared to the rest of the industry. TSEM outperforms 69.57% of its industry peers.
  • In the last couple of years the Operating Margin of TSEM has grown nicely.
  • TSEM has a worse Gross Margin (23.23%) than 75.65% of its industry peers.
  • 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

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5

2. TSEM Health Analysis

2.1 Basic Checks

  • TSEM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • TSEM has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for TSEM has been increased compared to 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

  • A Debt/Equity ratio of 0.05 indicates that TSEM is not too dependend on debt financing.
  • TSEM has a better Debt to Equity ratio (0.05) than 60.87% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF N/A
Altman-Z N/A
ROIC/WACC0.41
WACC12.16%
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

  • A Current Ratio of 6.48 indicates that TSEM has no problem at all paying 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.
  • With an excellent Quick ratio value of 5.51, TSEM belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
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

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6

3. TSEM Growth Analysis

3.1 Past

  • TSEM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.05%.
  • The Earnings Per Share has been growing by 19.39% on average over the past years. This is quite good.
  • Looking at the last year, TSEM shows a quite strong growth in Revenue. The Revenue has grown by 9.05% in the last year.
  • The Revenue has been growing slightly by 4.35% on average over the past years.
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

  • Based on estimates for the next years, TSEM will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.98% on average per year.
  • TSEM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.45% yearly.
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

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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

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2

4. TSEM Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 75.40 indicates a quite expensive valuation of TSEM.
  • Compared to the rest of the industry, the Price/Earnings ratio of TSEM is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 24.88. TSEM is valued rather expensively when compared to this.
  • The Price/Forward Earnings ratio is 56.90, which means the current valuation is very expensive for TSEM.
  • TSEM's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, TSEM is valued quite expensively.
Industry RankSector Rank
PE 75.4
Fwd PE 56.9
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TSEM indicates a somewhat cheap valuation: TSEM is cheaper than 65.22% of the companies listed in the same industry.
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 TSEM does not grow enough to justify the current Price/Earnings ratio.
  • 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)2.32
PEG (5Y)3.89
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

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TSEM Fundamentals: All Metrics, Ratios and Statistics

TOWER SEMICONDUCTOR LTD

NASDAQ:TSEM (3/27/2026, 8:00:01 PM)

After market: 170.25 -1.67 (-0.97%)

171.92

-2.76 (-1.58%)

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 Cap19.35B
Revenue(TTM)1.57B
Net Income(TTM)220.47M
Analysts80
Price Target143.96 (-16.26%)
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 75.4
Fwd PE 56.9
P/S 12.35
P/FCF N/A
P/OCF 48.92
P/B 6.66
P/tB 6.66
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
OCFY2.04%
SpS13.92
BVpS25.81
TBVpS25.81
PEG (NY)2.32
PEG (5Y)3.89
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
WACC12.16%
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%.