TSEM Stock Analysis: Tower Semiconductor | NASDAQ
Semiconductors | NASDAQ, USA | Market Cap: 26.065m USD | 12M Return: 385.3% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 455M
EPS Trend: -2.5%
Qual. Beats: 2
Rev. Trend: 51.9%
Qual. Beats: 1
Warnings
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Tower Semiconductor Ltd. (NASDAQ: TSEM) is an independent semiconductor foundry headquartered in Migdal Haemek, Israel, founded in 1993 and listed on NASDAQ since 1994. As a pure-play foundry, it manufactures integrated circuits designed by others rather than selling its own branded chips, serving both fabless companies (which design chips but outsource manufacturing) and integrated device manufacturers (IDMs) across the United States, Japan, rest of Asia, and Europe.
The company offers a portfolio of customizable process technologies, including SiGe, silicon photonics (SiPho), mixed-signal CMOS, RF CMOS, CMOS image sensors, non-imaging sensors, and integrated power management, supported by a design enablement platform that helps customers move from design through tape-out. Its end-markets span consumer electronics, PCs, communications infrastructure, mobile handsets and smartphones, automotive, industrial, aerospace, and medical devices. Within the broader foundry sector, Tower competes with players such as Taiwan Semiconductor and GlobalFoundries, typically focusing on specialty and analog-intensive process nodes rather than leading-edge digital logic.
- Intel acquisition collapse leaves Tower pursuing standalone growth strategy
- SiPho and SiGe demand accelerates on data center and 5G buildouts
- Automotive and industrial analog chips lift foundry utilization and margins
| Net Income: 245.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 9.36 > 1.0 |
| NWC/Revenue: 102.9% < 20% (prev 100.8%; Δ 2.10% < -1%) |
| CFO/TA 0.22 > 3% & CFO 819.2m > Net Income 245.4m |
| Net Debt (-1.30b) to EBITDA (581.4m): -2.23 < 3 |
| Current Ratio: 5.63 > 1.5 & < 3 |
| Outstanding Shares: last quarter (114.3m) vs 12m ago 1.05% < -2% |
| Gross Margin: 24.77% > 18% (prev 23.18%; Δ 1.59% > 0.5%) |
| Asset Turnover: 47.63% > 50% (prev 47.19%; Δ 0.44% > 0%) |
| Interest Coverage Ratio: 74.08 > 6 (EBIT TTM 271.0m / Interest Expense TTM 3.66m) |
| A: 0.45 (Total Current Assets 2.03b - Total Current Liabilities 360.4m) / Total Assets 3.70b |
| B: 0.24 (Retained Earnings 895.9m / Total Assets 3.70b) |
| C: 0.08 (EBIT TTM 271.0m / Avg Total Assets 3.40b) |
| D: 4.09 (Book Value of Equity 2.97b / Total Liabilities 726.5m) |
| Altman-Z'' = 8.58 = AAA |
| DSRI: 0.88 (Receivables 213.8m/219.5m, Revenue 1.62b/1.47b) |
| GMI: 0.94 (GM 23.18% / 24.77%) |
| AQI: 3.50 (AQ_t 0.04 / AQ_t-1 0.01) |
| SGI: 1.11 (Revenue 1.62b / 1.47b) |
| TATA: -0.16 (NI 245.4m - CFO 819.2m) / TA 3.70b) |
| Beneish M = -1.64 (Cap -4..+1) = CCC |
As of July 07, 2026, the stock is trading at USD 218.95 with a total of 1,204,210 shares traded. Over the past week, the price has changed by -12.39%, over one month by -9.54%, over three months by +15.12% and over the past year by +385.26%.
Current recommended Stop Loss: 182.90 (which is 16.5% or 1.5 ATR below the current price).
Tower Semiconductor has received a consensus analysts rating of 4.80. Therefore, it is recommended to buy TSEM.
- StrongBuy: 4
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 313.8 | 43.3% |
P/E Trailing = 100.9447
P/E Forward = 64.9351
P/S = 16.0737
P/B = 8.269
P/EG = 6.3107
Revenue TTM = 1.62b USD
EBIT TTM = 271.0m USD
EBITDA TTM = 581.4m USD
Long Term Debt = 130.7m USD (from longTermDebt, last quarter)
Short Term Debt = 25.1m USD (from shortTermDebt, last quarter)
Debt = 203.1m USD (from shortLongTermDebtTotal, last quarter) + Leases 47.2m
Net Debt = -1.30b USD (calculated: Debt 203.1m - CCE 1.50b)
Enterprise Value = 24.8b USD (26.1b + Debt 203.1m - CCE 1.50b)
Interest Coverage Ratio = 74.08 (Ebit TTM 271.0m / Interest Expense TTM 3.66m)
EV/FCF = 75.95x (Enterprise Value 24.8b / FCF TTM 326.1m)
FCF Yield = 1.32% (FCF TTM 326.1m / Enterprise Value 24.8b)
FCF Margin = 20.11% (FCF TTM 326.1m / Revenue TTM 1.62b)
Net Margin = 15.13% (Net Income TTM 245.4m / Revenue TTM 1.62b)
Gross Margin = 24.77% ((Revenue TTM 1.62b - Cost of Revenue TTM 1.22b) / Revenue TTM)
Gross Margin QoQ = 26.82% (prev 26.72%)
Tobins Q-Ratio = 6.69 (Enterprise Value 24.8b / Total Assets 3.70b)
Interest Expense / Debt = 1.80% (Interest Expense 3.66m / Debt 203.1m)
Taxrate = 8.97% (24.3m / 271.0m)
NOPAT = 246.7m (EBIT 271.0m * (1 - 8.97%))
Current Ratio = 5.63 (Total Current Assets 2.03b / Total Current Liabilities 360.4m)
Debt / Equity = 0.07 (Debt 203.1m / totalStockholderEquity, last quarter 2.97b)
Debt / EBITDA = -2.23 (Net Debt -1.30b / EBITDA 581.4m)
Debt / FCF = -3.97 (Net Debt -1.30b / FCF TTM 326.1m)
Total Stockholder Equity = 2.87b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.21% (Net Income 245.4m / Total Assets 3.70b)
RoE = 8.54% (Net Income TTM 245.4m / Total Stockholder Equity 2.87b)
RoCE = 9.03% (EBIT 271.0m / Capital Employed (Equity 2.87b + L.T.Debt 130.7m))
RoIC = 7.51% (NOPAT 246.7m / Invested Capital 3.28b)
WACC = 11.75% (E(26.1b)/V(26.3b) * Re(11.83%) + D(203.1m)/V(26.3b) * Rd(1.80%) * (1-Tc(0.09)))
Discount Rate = 11.83% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 89.44 | Cagr: 1.19%
[DCF] Terminal Value 64.50% ; FCFF base≈326.1m ; Y1≈327.5m ; Y5≈346.9m
[DCF] Fair Price = 41.79 (EV 3.42b - Net Debt -1.30b = Equity 4.71b / Shares 112.8m; r=11.75% [WACC]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: -2.46 | EPS CAGR: -0.20% | SUE: 3.66 | # QB: 2
Revenue Correlation: 51.93 | Revenue CAGR: 2.89% | SUE: 2.57 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.76 | Chg30d=+14.16% | Revisions=+62% | Analysts=5
EPS next Quarter (2026-09-30): EPS=0.89 | Chg30d=+15.57% | Revisions=+62% | Analysts=5
EPS current Year (2026-12-31): EPS=3.34 | Chg30d=+12.93% | Revisions=+62% | GrowthEPS=+45.9% | GrowthRev=+20.6%
EPS next Year (2027-12-31): EPS=5.74 | Chg30d=+19.71% | Revisions=+57% | GrowthEPS=+71.7% | GrowthRev=+34.8%
[Analyst] Revisions Ratio: +86% (up=19, down=0)