TOWER SEMICONDUCTOR LTD (TSEM) Stock Fundamental Analysis
NASDAQ:TSEM • IL0010823792
127.78 USD
-0.96 (-0.75%)
At close: Feb 17, 2026
127 USD
-0.78 (-0.61%)
After Hours: 2/17/2026, 5:49:49 PM
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. Both the profitability and the financial health of TSEM get a neutral evaluation. Nothing too spectacular is happening here. TSEM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year TSEM was profitable.
- In the past year TSEM had a positive cash flow from operations.
- In the past 5 years TSEM has always been profitable.
- In the past 5 years TSEM always reported a positive cash flow from operatings.
1.2 Ratios
- TSEM's Return On Assets of 6.64% is fine compared to the rest of the industry. TSEM outperforms 70.80% of its industry peers.
- The Return On Equity of TSEM (7.59%) is better than 64.60% of its industry peers.
- The Return On Invested Capital of TSEM (5.02%) is better than 64.60% 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 Rank | Sector 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%
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.
- With a decent Operating Margin value of 12.40%, TSEM is doing good in the industry, outperforming 68.14% of the companies in the same industry.
- TSEM's Operating Margin has improved in the last couple of years.
- TSEM has a worse Gross Margin (23.23%) than 78.76% of its industry peers.
- In the last couple of years the Gross Margin of TSEM has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TSEM is destroying value.
- TSEM has more shares outstanding than it did 1 year ago.
- TSEM has more shares outstanding than it did 5 years ago.
- TSEM has a better debt/assets ratio than last year.
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.
- TSEM has a better Debt to Equity ratio (0.05) than 62.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.41
WACC12.34%
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 has a Current ratio of 6.48. This is amongst the best in the industry. TSEM outperforms 83.19% of its industry peers.
- A Quick Ratio of 5.51 indicates that TSEM has no problem at all paying 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.48 | ||
| Quick Ratio | 5.51 |
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%.
- Measured over the past years, TSEM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.39% on average per year.
- 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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- TSEM is valuated quite expensively with a Price/Earnings ratio of 56.04.
- Based on the Price/Earnings ratio, TSEM is valued a bit cheaper than the industry average as 60.18% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.16, TSEM is valued quite expensively.
- A Price/Forward Earnings ratio of 43.59 indicates a quite expensive valuation of TSEM.
- TSEM's Price/Forward Earnings is on the same level as the industry average.
- TSEM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.04 | ||
| Fwd PE | 43.59 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.12 |
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 14.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.96
PEG (5Y)2.89
EPS Next 2Y41.17%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
- No dividends for TSEM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
127.78
-0.96 (-0.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-11 2026-02-11/bmo
Earnings (Next)05-12 2026-05-12
Inst Owners74.07%
Inst Owner Change-1.17%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap14.29B
Revenue(TTM)1.57B
Net Income(TTM)220.47M
Analysts80
Price Target126.96 (-0.64%)
Short Float %1.79%
Short Ratio1.08
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.04 | ||
| Fwd PE | 43.59 | ||
| P/S | 9.13 | ||
| P/FCF | N/A | ||
| P/OCF | 36.14 | ||
| P/B | 4.92 | ||
| P/tB | 4.92 | ||
| EV/EBITDA | 25.12 |
EPS(TTM)2.28
EY1.78%
EPS(NY)2.93
Fwd EY2.29%
FCF(TTM)-0.37
FCFYN/A
OCF(TTM)3.54
OCFY2.77%
SpS14
BVpS25.97
TBVpS25.97
PEG (NY)1.96
PEG (5Y)2.89
Graham Number36.5
Profitability
| Industry Rank | Sector 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 Rank | Sector 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%.