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Tower Semiconductor Ltd (TSEM) stock analysis

TSEMNasdaqSemiconductors & Related DevicesFiscal year ends December 31
Financials through Q2 FY2026, quarter ended Jun 30, 2026Last filing: 20-F on Apr 30, 2026Score 7/30
$146.89−10.97 (-6.95%)

Close on Nov 13, 2026Market cap $16.53BP/E 75.7Yield –

StockData Score

Prices as of Nov 13, 2026How the score works

Value0Growth0Performance4Health3Dividend0

Weak7 of 30 checks passed

Tower Semiconductor passes 7 of the 30 checks behind our score; 15 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
0/6
Growth
0/6
Past performance
4/6
Financial health
3/6
Dividend
0/6

What stands out

  • Return on capital over 10%

    Return on invested capital was 10.9%, above the 10% that usually covers the cost of capital.

  • Earnings grew over 5 years

    Net income grew 21.8% a year on average over the last five fiscal years.

  • Interest well covered

    Operating income covers interest expense 53.1 times.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 279% of total debt.

What to watch

  • Return on equity under 15%

    Return on equity was 8.3% over the last twelve months and averaged 13.0% over five years; we look for 15% on both.

  • Revenue growing under 10% a year

    Revenue grew -2.3% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growing under 10% a year

    Diluted EPS grew -6.7% a year over the last three fiscal years.

  • Earnings growth not accelerating

    Net income grew 6.1% over the last twelve months, against a 5-year average of 21.8% a year.

Valuation0/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B against the industry

    Needs positive book value.

  • Price against fair value

    We could not estimate a fair value: it needs at least two valuation methods with positive inputs.

  • Margin of safety

    Depends on the fair value estimate.

Growth0/6

  • Revenue growing under 10% a year

    Revenue grew -2.3% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growing under 10% a year

    Diluted EPS grew -6.7% a year over the last three fiscal years.

  • Earnings growth not accelerating

    Net income grew 6.1% over the last twelve months, against a 5-year average of 21.8% a year.

  • Growing slower than the industry

    Revenue grew 9.1% over the last twelve months; the Electronic Components and Accessories median is 17.6%.

  • Company guidance

    No outlook found in earnings releases from the last twelve months.

  • Gross margin slipping

    Gross margin was 23.2% over the last twelve months, against 23.6% a year earlier.

Past performance4/6

  • Return on equity under 15%

    Return on equity was 8.3% over the last twelve months and averaged 13.0% over five years; we look for 15% on both.

  • Return on capital over 10%

    Return on invested capital was 10.9%, above the 10% that usually covers the cost of capital.

  • Return on equity above the industry

    Tower Semiconductor's return on equity of 8.3% is above the Electronic Components and Accessories median of 5.0%.

  • Earnings grew over 5 years

    Net income grew 21.8% a year on average over the last five fiscal years.

  • Net margin below its 5-year average

    Net margin was 14.1% over the last twelve months, against a 5-year average of 18.1%.

  • Net margin above the industry

    Tower Semiconductor's net margin of 14.1% is above the Electronic Components and Accessories median of 3.0%.

Financial health3/6

  • Debt level

    Needs debt and equity figures.

  • Debt trend

    Needs a balance sheet from five years ago with positive equity.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 279% of total debt.

  • Interest well covered

    Operating income covers interest expense 53.1 times.

  • Short-term assets cover short-term debts

    Current assets are 4.91 times current liabilities.

  • Bankruptcy risk (Altman Z)

    Needs market value, working capital and retained earnings.

Dividend0/6

  • No dividend

    Tower Semiconductor has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

We don't publish a fair value for Tower Semiconductor. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$539.48M
Value traded per 1% price move
$102.71M

Downside

High risk

Typical loss in a bad month
34.1%
Volatility (annualized)
85%
Sharpe ratio, 1 year
0.39
Beta to the S&P 500 (5Y)
1.06

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Gross margin

23.2%+4.8 pts over 5 years

Operating margin

12.4%+5.2 pts over 5 years

Net margin

14.1%+7.6 pts over 5 years

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