(TSEM) Tower Semiconductor - Overview
Sector: Technology | Industry: Semiconductors | Exchange: NASDAQ (USA) | Market Cap: 32.601m USD | Total Return: 580.8% in 12m
Industry Rotation: +7.3
Avg Turnover: 530M
EPS Trend: 39.9%
Qual. Beats: 2
Rev. Trend: 51.9%
Qual. Beats: 1
Warnings
P/E ratio 126.8
Tailwinds
Supp Ema20, Leader, Pead, Tailwind, Confidence
Tower Semiconductor Ltd. (TSEM) operates as an independent specialty foundry, manufacturing analog intensive integrated circuits for a global client base. The company provides a broad range of customizable process technologies, including Silicon Germanium (SiGe) and CMOS image sensors, serving diverse end-markets such as automotive, aerospace, and medical electronics.
Unlike digital foundries that focus on shrinking transistor sizes (Moore’s Law), specialty foundries like Tower focus on More than Moore technologies, optimizing chips for power management and radio frequency performance. This business model relies on long-term partnerships with fabless semiconductor firms and integrated device manufacturers (IDMs) to develop application-specific platforms. For a deeper look into these operational metrics, investors may find ValueRays comparative tools useful.
Headquartered in Israel and established in 1993, the company maintains manufacturing facilities in the United States and Japan. Its design enablement platform supports the full product lifecycle, facilitating the transition from initial circuit design to high-volume production.
- Expansion of RF and SiGe technologies in 5G and mobile infrastructure
- High-margin automotive and industrial sensor demand drives specialized manufacturing revenue
- Strategic partnership with Intel for 300mm capacity enhances production scalability
- Geopolitical instability in Israel poses potential manufacturing and operational risk
- Global fabless semiconductor demand fluctuations impact high-utilization factory 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 (-1.34b) to EBITDA (571.9m): -2.35 < 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 0.23%; Δ 2.45k% > 0.5%) |
| Asset Turnover: 47.63% > 50% (prev 47.19%; Δ 0.44% > 0%) |
| Interest Coverage Ratio: 71.47 > 6 (EBITDA TTM 571.9m / 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 261.5m / Avg Total Assets 3.40b) |
| D: 5.23 (Book Value of Equity 3.80b / Total Liabilities 726.5m) |
| Altman-Z'' = 9.76 = AAA |
| DSRI: 0.88 (Receivables 213.8m/219.5m, Revenue 1.62b/1.47b) |
| GMI: 0.94 (GM 24.77% / 23.18%) |
| 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 = -1.78 (Cap -4..+1) = B |
Over the past week, the price has changed by -0.60%, over one month by +28.74%, over three months by +118.95% and over the past year by +580.84%.
- StrongBuy: 4
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 313.8 | 12.5% |
P/E Forward = 74.0741
P/S = 20.1044
P/B = 8.1555
P/EG = 5.0714
Revenue TTM = 1.62b USD
EBIT TTM = 261.5m USD
EBITDA TTM = 571.9m USD
Long Term Debt = 133.4m USD (from longTermDebt, last fiscal year)
Short Term Debt = 25.1m USD (from shortTermDebt, last quarter)
Debt = 155.9m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -1.34b USD (recalculated: Debt 155.9m - CCE 1.50b)
Enterprise Value = 31.26b USD (32.60b + Debt 155.9m - CCE 1.50b)
Interest Coverage Ratio = 71.47 (Ebit TTM 261.5m / Interest Expense TTM 3.66m)
EV/FCF = 95.85x (Enterprise Value 31.26b / FCF TTM 326.1m)
FCF Yield = 1.04% (FCF TTM 326.1m / Enterprise Value 31.26b)
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 = 8.45 (Enterprise Value 31.26b / Total Assets 3.70b)
Interest Expense / Debt = 2.35% (Interest Expense 3.66m / Debt 155.9m)
Taxrate = 8.80% (6.52m / 74.1m)
NOPAT = 238.4m (EBIT 261.5m * (1 - 8.80%))
Current Ratio = 5.63 (Total Current Assets 2.03b / Total Current Liabilities 360.4m)
Debt / Equity = 0.05 (Debt 155.9m / totalStockholderEquity, last quarter 2.97b)
Debt / EBITDA = -2.35 (Net Debt -1.34b / EBITDA 571.9m)
Debt / FCF = -4.12 (Net Debt -1.34b / 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 = 8.70% (EBIT 261.5m / Capital Employed (Equity 2.87b + L.T.Debt 133.4m))
RoIC = 20.91% (NOPAT 238.4m / Invested Capital 1.14b)
WACC = 11.51% (E(32.60b)/V(32.76b) * Re(11.55%) + D(155.9m)/V(32.76b) * Rd(2.35%) * (1-Tc(0.09)))
Discount Rate = 11.55% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 100.00 | Cagr: 1.20%
[DCF] Terminal Value 56.62% ; FCFF base≈326.1m ; Y1≈214.1m ; Y5≈97.9m
[DCF] Fair Price = 22.67 (EV 1.21b - Net Debt -1.34b = Equity 2.56b / Shares 112.8m; r=11.51% [WACC]; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: 39.88 | EPS CAGR: 2.71% | SUE: 3.82 | # 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=-11% | Analysts=5
EPS next Quarter (2026-09-30): EPS=0.89 | Chg30d=+15.57% | Revisions=+0% | Analysts=5
EPS current Year (2026-12-31): EPS=3.34 | Chg30d=+12.93% | Revisions=+25% | GrowthEPS=+45.9% | GrowthRev=+20.6%
EPS next Year (2027-12-31): EPS=5.74 | Chg30d=+19.71% | Revisions=+33% | GrowthEPS=+71.7% | GrowthRev=+34.8%
[Analyst] Revisions Ratio: +33%