TSEM

Tower Semiconductor Ltd.

Fundamental data last updated:September 28, 2026

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company profile

SECTOR

Technology

industry

Semiconductors

Exchange

NASDAQ

County of HQ

IL

Next Earnings Date

Pending Announcement

Business Summary

Tower Semiconductor Ltd., an independent semiconductor foundry, manufactures and markets analog intensive mixed-signal semiconductor devices in the United States, Japan, other Asia countries, and Europe. It provides various customizable process technologies, including SiGe, BiCMOS, mixed signal/CMOS, RF CMOS, CMOS image sensor, integrated power management, and MEMS. The company also offers wafer fabrication services and design enablement platform for design cycle, as well as transfer optimization and development process services to integrated device manufacturers and fabless companies. It serves various markets, such as consumer electronics, personal computers, communications, automotive, industrial, aerospace, military, and medical device products. The company was incorporated in 1993 and is headquartered in Migdal Haemek, Israel.

 


VALUATION

P/E

117.67

Market Cap ($M USD)

$28.26B

Forward P/E

29.84

PEG

0.10

PRICE TO SALES

19.76

PRICE TO BOOK

10.97

EV / EBITDA

63.01

5-Year Average P/E

Free Cash Flow Yield

1.02%

DCF Value

$31.57

Graham Number

$35.58

Price to FCF

97.77

EV to FCF

97.51

Earnings Yield

0.75%

FCF Yield

1.02%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.15

Next Year EPS Growth Estimate

$8.48

Next Year Revenue Growth Estimate

$3.17B

Return on Equity (ROE)

8.54%

FREE CASH FLOW

Operating Margin

13.93%

Debt-to-Equity

0.06

Piotroski F-Score

7

Altman Z-Score

27.67

Return on Invested Capital (ROIC)

6.73%

Current Ratio

5.63

Quick Ratio

4.92

Net Debt to EBITDA

-0.17

Interest Coverage

0.00

Gross Profit margin

24.77%

FCF PER SHARE

$2.87

REVENUE PER SHARE

$14.20

Gainseekers Quantitative Analysis

Summary

The market seems to be pricing TSEM with sky-high expectations, as evidenced by its astronomical Price/Earnings ratio of over 107. Yet, the stock’s valuation is starkly misaligned with its DCF Value and Graham Number, suggesting a significant overvaluation. The Forward P/E of 32.05 reflects optimism for future earnings growth, but the Earnings Yield of just 0.93% is underwhelming. However, the Altman Z-score of 35.10 indicates robust financial health, mitigating bankruptcy risk. This juxtaposition of high valuation and financial safety creates a complex narrative for investors.

AI Exposure / Tech Reliance

Positioned within the semiconductor industry, TSEM is well-suited to capitalize on AI advancements and tech shifts. The sector's inherent demand for cutting-edge technology provides a fertile ground for growth. As AI continues to evolve, TSEM's adaptability will be crucial in maintaining its competitive edge.

The Bull Case

For the value-driven investor, TSEM offers compelling institutional tailwinds. A Piotroski F-Score of 7 signals strong financial health, while a Return on Equity of 7.85% and ROIC of 6.35% highlight efficient capital use. Despite a negative FCF Yield, the company's operating margin of 12.40% suggests solid pricing power. These metrics collectively paint a picture of a company with the potential for sustainable growth and profitability.

The Bear Case

Yet, the bear case is equally persuasive. TSEM's Price/Sales ratio of 15.09 and Price/Book of 8.18 are alarmingly high, indicating a stock priced for perfection. The negative Price to FCF ratio underscores severe cash flow challenges, while trading close to its 52-week high suggests technical overextension. These factors raise red flags about the stock's current valuation and future performance.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$257.33

Institutional Ownership %

1-Year Beta

0.85

Insider Buying % (6 Mo)

Distance to 52-Week High

19.75%

Distance to 52-Week Low

85.18%

EARNINGS SURPRISE %

15.45%

50-DAY SMA

$215.15

200-DAY SMA

$127.83

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.