TSEM Stock Analysis: Tower Semiconductor | NASDAQ
Semiconductors | NASDAQ, USA | Market Cap: 18.510m USD | 12M Return: 50.5% | IL0010823792 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 549M
EPS Trend: 85.2%
Qual. Beats: 4
Rev. Trend: 83.1%
Qual. Beats: 2
Warnings
Tailwinds
Seasonality 11.9 years of data, until 10/2026
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, ≥40 worth a closer look and ≥60 is strong.
Tower Semiconductor Ltd. (NASDAQ: TSEM) is an independent semiconductor foundry headquartered in Migdal Haemek, Israel, with operations in the United States, Japan, rest of Asia, and Europe. The company specializes in customizable process technologies such as SiGe, SiPho, RF CMOS, mixed signal CMOS, CMOS image sensors, and integrated power management, serving integrated device manufacturers and fabless companies. Its end markets span consumer electronics, communications, mobile devices, automotive, industrial, aerospace, and medical applications.
Unlike fabless chip designers, founders like Tower own and operate fabrication plants, producing wafers on contract for clients rather than selling under their own brand. The company is listed on the NASDAQ as a large-cap Information Technology stock with a market capitalization of approximately $27.2 billion USD and has been publicly traded since its 1994 IPO.
- Intel deal collapse forces organic capacity expansion in Japan and US
- RF and SiGe revenue grows on 5G and automotive wireless demand
- Israel fab exposure to Middle East geopolitical tensions remains key risk
| Net Income: 289.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 8.25 > 1.0 |
| NWC/Revenue: 92.52% < 20% (prev 100.5%; Δ -7.95% < -1%) |
| CFO/TA 0.23 > 3% & CFO 873.6m > Net Income 289.6m |
| Net Debt (-1.29b) to EBITDA (627.8m): -2.06 < 3 |
| Current Ratio: 4.91 > 1.5 & < 3 |
| Outstanding Shares: last quarter (114.4m) vs 12m ago 1.01% < -2% |
| Gross Margin: 26.87% > 18% (prev 22.39%; Δ 4.48% > 0.5%) |
| Asset Turnover: 49.02% > 50% (prev 46.45%; Δ 2.57% > 0%) |
| Interest Coverage Ratio: 83.93 > 6 (EBIT TTM 307.0m / Interest Expense TTM 3.66m) |
| A: 0.42 (Total Current Assets 1.99b - Total Current Liabilities 404.2m) / Total Assets 3.77b |
| B: 0.24 (Retained Earnings 895.9m / Total Assets 3.77b) |
| C: 0.09 (EBIT TTM 307.0m / Avg Total Assets 3.49b) |
| D: 4.41 (Book Value of Equity 3.09b / Total Liabilities 700.1m) |
| Altman-Z'' = 8.75 = AAA |
| DSRI: 0.82 (Receivables 202.9m/215.3m, Revenue 1.71b/1.49b) |
| GMI: 0.83 (GM 22.39% / 26.87%) |
| AQI: 3.09 (AQ_t 0.04 / AQ_t-1 0.01) |
| SGI: 1.15 (Revenue 1.71b / 1.49b) |
| TATA: -0.15 (NI 289.6m - CFO 873.6m) / TA 3.77b) |
| Beneish M = -2.00 (Cap -4..+1) = B |
As of November 11, 2026, the stock is trading at USD 147.60 with a total of 2,338,435 shares traded. Over the past week, the price has changed by -9.48%, over one month by -31.82%, over three months by -41.56% and over the past year by +50.46%.
Current recommended Stop Loss: 127.60 (which is 13.6% or 1.3 ATR below the current price).
Tower Semiconductor has received a consensus analysts rating of 4.67. Therefore, it is recommended to buy TSEM.
- StrongBuy: 7
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 298.4 | 102.2% |
P/E Trailing = 52.4309
P/E Forward = 25.9067
P/S = 10.0595
P/B = 5.7107
P/EG = 3.4261
Revenue TTM = 1.71b USD
EBIT TTM = 307.0m USD
EBITDA TTM = 627.8m USD
Long Term Debt = 124.8m USD (from longTermDebt, last quarter)
Short Term Debt = 16.9m USD (from shortTermDebt, last quarter)
Debt = 188.9m USD (from shortLongTermDebtTotal, last quarter) + Leases 47.2m
Net Debt = -1.29b USD (calculated: Debt 188.9m - CCE 1.48b)
Enterprise Value = 17.2b USD (18.5b + Debt 188.9m - CCE 1.48b)
Interest Coverage Ratio = 83.93 (Ebit TTM 307.0m / Interest Expense TTM 3.66m)
EV/FCF = 56.53x (Enterprise Value 17.2b / FCF TTM 304.6m)
FCF Yield = 1.77% (FCF TTM 304.6m / Enterprise Value 17.2b)
FCF Margin = 17.82% (FCF TTM 304.6m / Revenue TTM 1.71b)
Net Margin = 16.94% (Net Income TTM 289.6m / Revenue TTM 1.71b)
Gross Margin = 26.87% ((Revenue TTM 1.71b - Cost of Revenue TTM 1.25b) / Revenue TTM)
Gross Margin QoQ = 29.95% (prev 26.82%)
Tobins Q-Ratio = 4.57 (Enterprise Value 17.2b / Total Assets 3.77b)
Interest Expense / Debt = 1.94% (Interest Expense 3.66m / Debt 188.9m)
Taxrate = 9.67% (31.2m / 322.9m)
NOPAT = 277.3m (EBIT 307.0m * (1 - 9.67%))
Current Ratio = 4.91 (Total Current Assets 1.99b / Total Current Liabilities 404.2m)
Debt / Equity = 0.06 (Debt 188.9m / totalStockholderEquity, last quarter 3.09b)
Debt / EBITDA = -2.06 (Net Debt -1.29b / EBITDA 627.8m)
Debt / FCF = -4.24 (Net Debt -1.29b / FCF TTM 304.6m)
Total Stockholder Equity = 2.95b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.30% (Net Income 289.6m / Total Assets 3.77b)
RoE = 9.82% (Net Income TTM 289.6m / Total Stockholder Equity 2.95b)
RoCE = 9.99% (EBIT 307.0m / Capital Employed (Equity 2.95b + L.T.Debt 124.8m))
RoIC = 8.41% (NOPAT 277.3m / Invested Capital 3.30b)
WACC = 13.50% (E(18.5b)/V(18.7b) * Re(13.62%) + D(188.9m)/V(18.7b) * Rd(1.94%) * (1-Tc(0.10)))
Discount Rate = 13.62% (= CAPM, Blume Beta Adj.) -> capped to 12.54%
Shares (quarterly) Correlation: 98.86 | Cagr: 1.11%
[DCF] Terminal Value 59.62% ; FCFF base≈304.6m ; Y1≈305.8m ; Y5≈324.0m
[DCF] Fair Price = 35.07 (EV 2.69b - Net Debt -1.29b = Equity 3.98b / Shares 113.5m; r=13.50% [WACC]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: 85.20 | EPS CAGR: 15.53% | SUE: 2.10 | # QB: 4
Revenue Correlation: 83.09 | Revenue CAGR: 6.13% | SUE: 4.0 | # QB: 2
EPS current Quarter (2027-03-31): EPS=1.32 | Chg30d=+3.82% | Revisions=+25% | Analysts=7
EPS current Year (2026-12-31): EPS=3.89 | Chg30d=+0.00% | Revisions=+25% | GrowthEPS=+70.0% | GrowthRev=+27.8%
EPS next Year (2027-12-31): EPS=6.95 | Chg30d=+3.52% | Revisions=+25% | GrowthEPS=+78.5% | GrowthRev=+37.9%
[Analyst] Revisions Ratio: +50% (up=3, down=0)