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TOWER SEMICONDUCTOR LTD (TSEM) Stock Fundamental Analysis

NASDAQ:TSEM - Nasdaq - IL0010823792 - Common Stock - Currency: USD

50.38  +5.71 (+12.78%)

Fundamental Rating

4

Taking everything into account, TSEM scores 4 out of 10 in our fundamental rating. TSEM was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. TSEM has an average financial health and profitability rating. TSEM is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

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.
TSEM had a positive operating cash flow in each of the past 5 years.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

1.2 Ratios

TSEM's Return On Assets of 6.54% is fine compared to the rest of the industry. TSEM outperforms 71.82% of its industry peers.
Looking at the Return On Equity, with a value of 7.53%, TSEM is in the better half of the industry, outperforming 62.73% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.08%, TSEM is doing good in the industry, outperforming 63.64% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TSEM is below the industry average of 10.79%.
Industry RankSector Rank
ROA 6.54%
ROE 7.53%
ROIC 5.08%
ROA(3y)11.63%
ROA(5y)9.11%
ROE(3y)14.38%
ROE(5y)11.61%
ROIC(3y)7.43%
ROIC(5y)6.59%
TSEM Yearly ROA, ROE, ROICTSEM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

1.3 Margins

Looking at the Profit Margin, with a value of 13.86%, TSEM is in the better half of the industry, outperforming 70.91% of the companies in the same industry.
In the last couple of years the Profit Margin of TSEM has grown nicely.
The Operating Margin of TSEM (12.54%) is better than 68.18% of its industry peers.
In the last couple of years the Operating Margin of TSEM has grown nicely.
TSEM's Gross Margin of 23.18% is on the low side compared to the rest of the industry. TSEM is outperformed by 80.00% of its industry peers.
In the last couple of years the Gross Margin of TSEM has grown nicely.
Industry RankSector Rank
OM 12.54%
PM (TTM) 13.86%
GM 23.18%
OM growth 3Y5.29%
OM growth 5Y12.9%
PM growth 3Y13.32%
PM growth 5Y14.69%
GM growth 3Y2.7%
GM growth 5Y4.89%
TSEM Yearly Profit, Operating, Gross MarginsTSEM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TSEM is destroying value.
The number of shares outstanding for TSEM has been increased compared to 1 year ago.
Compared to 5 years ago, TSEM has more shares outstanding
The debt/assets ratio for TSEM has been reduced compared to a year ago.
TSEM Yearly Shares OutstandingTSEM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
TSEM Yearly Total Debt VS Total AssetsTSEM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

A Debt/Equity ratio of 0.05 indicates that TSEM is not too dependend on debt financing.
The Debt to Equity ratio of TSEM (0.05) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF N/A
Altman-Z N/A
ROIC/WACC0.43
WACC11.79%
TSEM Yearly LT Debt VS Equity VS FCFTSEM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

A Current Ratio of 6.93 indicates that TSEM has no problem at all paying its short term obligations.
TSEM's Current ratio of 6.93 is amongst the best of the industry. TSEM outperforms 89.09% of its industry peers.
TSEM has a Quick Ratio of 5.82. This indicates that TSEM is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TSEM (5.82) is better than 88.18% of its industry peers.
Industry RankSector Rank
Current Ratio 6.93
Quick Ratio 5.82
TSEM Yearly Current Assets VS Current LiabilitesTSEM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 6.84% over the past year.
Measured over the past years, TSEM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.54% on average per year.
Looking at the last year, TSEM shows a small growth in Revenue. The Revenue has grown by 5.21% in the last year.
The Revenue has been growing slightly by 3.08% on average over the past years.
EPS 1Y (TTM)6.84%
EPS 3Y10.12%
EPS 5Y16.54%
EPS Q2Q%-2.17%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y-1.62%
Revenue growth 5Y3.08%
Sales Q2Q%9.45%

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 12.45% yearly.
Based on estimates for the next years, TSEM will show a quite strong growth in Revenue. The Revenue will grow by 9.70% on average per year.
EPS Next Y0.58%
EPS Next 2Y11.83%
EPS Next 3Y11.98%
EPS Next 5Y12.45%
Revenue Next Year8.12%
Revenue Next 2Y9.7%
Revenue Next 3YN/A
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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
TSEM Yearly EPS VS EstimatesTSEM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4

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3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 23.54, TSEM is valued on the expensive side.
TSEM's Price/Earnings ratio is a bit cheaper when compared to the industry. TSEM is cheaper than 77.27% of the companies in the same industry.
TSEM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.82.
With a Price/Forward Earnings ratio of 18.74, TSEM is valued on the expensive side.
76.36% of the companies in the same industry are more expensive than TSEM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, TSEM is valued a bit cheaper.
Industry RankSector Rank
PE 23.54
Fwd PE 18.74
TSEM Price Earnings VS Forward Price EarningsTSEM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TSEM is valued cheaper than 94.55% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 6.51
TSEM Per share dataTSEM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

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.
The decent profitability rating of TSEM may justify a higher PE ratio.
PEG (NY)40.82
PEG (5Y)1.42
EPS Next 2Y11.83%
EPS Next 3Y11.98%

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0

5. Dividend

5.1 Amount

TSEM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TOWER SEMICONDUCTOR LTD

NASDAQ:TSEM (8/4/2025, 1:49:55 PM)

50.38

+5.71 (+12.78%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)05-14 2025-05-14/bmo
Earnings (Next)08-04 2025-08-04/bmo
Inst Owners73.36%
Inst Owner Change-1.7%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.64B
Analysts83.64
Price Target58.38 (15.88%)
Short Float %1.22%
Short Ratio2.13
Dividend
Industry RankSector Rank
Dividend Yield N/A
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)13.71%
Min EPS beat(2)10.7%
Max EPS beat(2)16.71%
EPS beat(4)4
Avg EPS beat(4)12.08%
Min EPS beat(4)5.44%
Max EPS beat(4)16.71%
EPS beat(8)7
Avg EPS beat(8)8.1%
EPS beat(12)10
Avg EPS beat(12)6.37%
EPS beat(16)14
Avg EPS beat(16)6.82%
Revenue beat(2)0
Avg Revenue beat(2)-1.95%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-1.94%
Revenue beat(4)0
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)-1.65%
Revenue beat(8)0
Avg Revenue beat(8)-1.67%
Revenue beat(12)0
Avg Revenue beat(12)-1.68%
Revenue beat(16)1
Avg Revenue beat(16)-1.67%
PT rev (1m)-0.06%
PT rev (3m)0.82%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)4.15%
EPS NY rev (1m)-1.4%
EPS NY rev (3m)3.31%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.63%
Valuation
Industry RankSector Rank
PE 23.54
Fwd PE 18.74
P/S 3.84
P/FCF N/A
P/OCF 13.03
P/B 2.09
P/tB 2.09
EV/EBITDA 6.51
EPS(TTM)2.14
EY4.25%
EPS(NY)2.69
Fwd EY5.34%
FCF(TTM)-0.15
FCFYN/A
OCF(TTM)3.87
OCFY7.68%
SpS13.12
BVpS24.16
TBVpS24.16
PEG (NY)40.82
PEG (5Y)1.42
Profitability
Industry RankSector Rank
ROA 6.54%
ROE 7.53%
ROCE 6.43%
ROIC 5.08%
ROICexc 8.66%
ROICexgc 8.66%
OM 12.54%
PM (TTM) 13.86%
GM 23.18%
FCFM N/A
ROA(3y)11.63%
ROA(5y)9.11%
ROE(3y)14.38%
ROE(5y)11.61%
ROIC(3y)7.43%
ROIC(5y)6.59%
ROICexc(3y)13.75%
ROICexc(5y)11.76%
ROICexgc(3y)13.89%
ROICexgc(5y)11.9%
ROCE(3y)9.41%
ROCE(5y)8.35%
ROICexcg growth 3Y-5.99%
ROICexcg growth 5Y4.5%
ROICexc growth 3Y-5.69%
ROICexc growth 5Y4.76%
OM growth 3Y5.29%
OM growth 5Y12.9%
PM growth 3Y13.32%
PM growth 5Y14.69%
GM growth 3Y2.7%
GM growth 5Y4.89%
F-Score6
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF N/A
Debt/EBITDA 0.29
Cap/Depr 156.24%
Cap/Sales 30.64%
Interest Coverage 250
Cash Conversion 91.71%
Profit Quality N/A
Current Ratio 6.93
Quick Ratio 5.82
Altman-Z N/A
F-Score6
WACC11.79%
ROIC/WACC0.43
Cap/Depr(3y)153.76%
Cap/Depr(5y)141.53%
Cap/Sales(3y)27.82%
Cap/Sales(5y)25.81%
Profit Quality(3y)37.51%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.84%
EPS 3Y10.12%
EPS 5Y16.54%
EPS Q2Q%-2.17%
EPS Next Y0.58%
EPS Next 2Y11.83%
EPS Next 3Y11.98%
EPS Next 5Y12.45%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y-1.62%
Revenue growth 5Y3.08%
Sales Q2Q%9.45%
Revenue Next Year8.12%
Revenue Next 2Y9.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y3.67%
EBIT growth 3Y3.58%
EBIT growth 5Y16.37%
EBIT Next Year136.83%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-122.61%
FCF growth 3Y-51.15%
FCF growth 5Y-33.98%
OCF growth 1Y-7.15%
OCF growth 3Y2.12%
OCF growth 5Y9.02%