TOWER SEMICONDUCTOR LTD (TSEM) Stock Fundamental Analysis

NASDAQ:TSEM • IL0010823792

125.86 USD
-2.49 (-1.94%)
At close: Feb 19, 2026
125.9 USD
+0.04 (+0.03%)
After Hours: 2/19/2026, 4:10:10 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to TSEM. TSEM was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. TSEM has only an average score on both its financial health and profitability. TSEM is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • TSEM had positive earnings in the past year.
  • TSEM had a positive operating cash flow in the past year.
  • Each year in the past 5 years TSEM has 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M

1.2 Ratios

  • TSEM has a better Return On Assets (6.64%) than 70.80% of its industry peers.
  • TSEM's Return On Equity of 7.59% is fine compared to the rest of the industry. TSEM outperforms 64.60% of its industry peers.
  • The Return On Invested Capital of TSEM (5.02%) is better than 64.60% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years 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 70.80% of the companies in the same industry.
  • In the last couple of years the Profit Margin of TSEM has grown nicely.
  • Looking at the Operating Margin, with a value of 12.40%, TSEM is in the better half of the industry, outperforming 68.14% of the companies in the same industry.
  • TSEM's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 23.23%, TSEM is doing worse than 77.88% 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

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. Health

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.
  • Compared to 5 years ago, TSEM has more shares outstanding
  • 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 Debt to Equity ratio of 0.05. This is in the better half of the industry: TSEM outperforms 62.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF N/A
Altman-Z N/A
ROIC/WACC0.41
WACC12.34%
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.
  • With an excellent Current ratio value of 6.48, TSEM belongs to the best of the industry, outperforming 83.19% of the companies in the same industry.
  • 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.
  • Looking at the Quick ratio, with a value of 5.51, TSEM belongs to the top of the industry, outperforming 84.07% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

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.
  • The Revenue has grown by 9.05% in the past year. This is quite good.
  • TSEM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.35% yearly.
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.
  • The Revenue is expected to grow by 21.45% on average over the next years. This is a very strong growth
EPS Next Y28.57%
EPS Next 2Y41.17%
EPS Next 3Y14.21%
EPS Next 5Y13.98%
Revenue Next Year16.91%
Revenue Next 2Y22.31%
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 1 2 3 4

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 55.20, TSEM can be considered very expensive at the moment.
  • TSEM's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of TSEM to the average of the S&P500 Index (27.27), we can say TSEM is valued expensively.
  • A Price/Forward Earnings ratio of 42.93 indicates a quite expensive valuation of TSEM.
  • TSEM's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of TSEM to the average of the S&P500 Index (28.16), we can say TSEM is valued expensively.
Industry RankSector Rank
PE 55.2
Fwd PE 42.93
TSEM Price Earnings VS Forward Price EarningsTSEM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • TSEM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TSEM is cheaper than 72.57% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 25.03
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.
  • The decent profitability rating of TSEM may justify a higher PE ratio.
  • A more expensive valuation may be justified as TSEM's earnings are expected to grow with 14.21% in the coming years.
PEG (NY)1.93
PEG (5Y)2.85
EPS Next 2Y41.17%
EPS Next 3Y14.21%

More info and screens

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

0

5. Dividend

5.1 Amount

  • TSEM does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

TOWER SEMICONDUCTOR LTD

NASDAQ:TSEM (2/19/2026, 4:10:10 PM)

After market: 125.9 +0.04 (+0.03%)

125.86

-2.49 (-1.94%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-11
Earnings (Next)05-12
Inst Owners74.07%
Inst Owner Change-1.17%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap14.08B
Revenue(TTM)1.57B
Net Income(TTM)220.47M
Analysts80
Price Target126.96 (0.87%)
Short Float %1.79%
Short Ratio1.08
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)17.91%
PT rev (3m)77.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.38%
Valuation
Industry RankSector Rank
PE 55.2
Fwd PE 42.93
P/S 8.99
P/FCF N/A
P/OCF 35.6
P/B 4.85
P/tB 4.85
EV/EBITDA 25.03
EPS(TTM)2.28
EY1.81%
EPS(NY)2.93
Fwd EY2.33%
FCF(TTM)-0.37
FCFYN/A
OCF(TTM)3.54
OCFY2.81%
SpS14
BVpS25.97
TBVpS25.97
PEG (NY)1.93
PEG (5Y)2.85
Graham Number36.5
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
WACC12.34%
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 Y28.57%
EPS Next 2Y41.17%
EPS Next 3Y14.21%
EPS Next 5Y13.98%
Revenue 1Y (TTM)9.05%
Revenue growth 3Y-2.27%
Revenue growth 5Y4.35%
Sales Q2Q%13.69%
Revenue Next Year16.91%
Revenue Next 2Y22.31%
Revenue Next 3Y21.45%
Revenue Next 5YN/A
EBIT growth 1Y4.93%
EBIT growth 3Y-13.7%
EBIT growth 5Y16.37%
EBIT Next Year193.93%
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 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 28.57% 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%.