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Tower Semiconductor Ltd. (TSEM)

NEUTRAL
TechnologySemiconductorsIsrael

Fundamental

53

Price

$213.21

Market Cap

$23.82B

Part 1 · What the company is worth

Overview

Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms for integrated circuits in the United States, Japan, rest of Asia, and Europe. The company provides customizable process technologies, including SiGe, SiPho, mixed signal CMOS, RF CMOS, CMOS image sensor, non-imaging sensors, wafers, and integrated power management. It also offers a design enablement platform for a design cycle, as well as transfer optimization and development process services to integrated device manufacturers and fabless companies. The company serves consumer applications, personal computers, communications, handsets and smartphones, automotive, industrial, aerospace, and medical devices. Tower Semiconductor Ltd. was incorporated in 1993 and is headquartered in Migdal Haemek, Israel

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Direct competitors

Who this company fights with for the same customers

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No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$1.71B

Trailing 12 months (through 6/30/2026)

Net Income

$290M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$167M

Total Equity

$3.07B

Total Liabilities

$142M

Current Ratio

4.91

Interest Coverage

-

Debt/EBITDA

0.24

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

Overvalued

Fair Value

$145.98

Current Price

$213.21

Margin of Safety

-46.1%

Fair Value Range

$94.88 - $197.07

Estimation Methods

Analyst Target:$321.32
DCF:$20.89
PE-based:$113.33
Graham Growth:$19.00
EPV:$44.76
Analyst Consensus:Strong Buy (9B / 2H / 0S)
Last Earnings Surprise:+13.81%

Valuation Metrics

P/E Ratio

82.95

ROE

10.0%

P/B Ratio

7.75

P/FCF

142.77

Gross Margin

26.9%

ROIC

8.2%

Profitability Radar

Value Creation (Economic Moat)

ROIC

8.2%

WACC

9.5%

ROIC − WACC

-1.3 pp

ROIC is below the cost of capital — the company is destroying value for every dollar invested.

Fundamental Analysis Criteria

Passed (10)

  • Price CAGR 27.89%
  • ROIC 8.2%
  • Debt/Equity ratio
  • Positive Free Cash Flow
  • Current Ratio
  • Debt/EBITDA
  • ROE 9.8%
  • Analyst Consensus 82% Buy
  • Earnings Surprise avg 9.8%
  • Earnings Quality (OCF/NI) 3.93

Failed (8)

  • Gross Margin 26.9%
  • P/FCF 142.77
  • P/B Ratio 7.75
  • CapEx intensity
  • DCF valuation (Overvalued)
  • Revenue Growth 5Y 3.9%
  • Net Margin Trend 14.1% vs 14.5%
  • Piotroski F-Score 2/9

Unavailable (9)

  • EPS data insufficient
  • Dividend Payout NaN%
  • Operating Margin NaN%
  • Interest Coverage
  • Return on Tangible Assets
  • Low reliance on intangibles
  • Price below Graham Number
  • PEG Ratio (need PE > 0 and growth > 0)
  • Share Dilution (missing shares data)

Piotroski F-Score

2/9

Serious financial concerns

score
criteria

Earnings Quality

3.93

High quality: earnings backed by cash

Share Dilution

-

Buying back shares. Shareholder friendly

Governance

Executive Team

NameTitleAge
Mr. Russell C. EllwangerCEO & Director70
Dr. Marco RacanelliPresident58
Mr. Oren Shirazi CPACFO & Senior VP of Finance55
Mr. Rafi MorChief Operating Officer61
Dr. Gurvinder JollyChief Scientist & Fellow-
Ms. Noit Levy-KaroubiSenior Vice President of Human Resources, Investor Relations & Corporate Communications41
Ms. Nati Somekh J.D.Senior VP, Chief Legal Officer & Corporate Secretary50
Mr. Lei QinSenior Vice President of Worldwide Sales-
Mr. Yossi NetzerSenior Vice President of Customer Solutions & Corporate Planning61
Dr. Avi Strum Ph.D.Senior VP and General Manager of Sensors & Displays Business Unit63

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Latest News

Recent headlines for TSEM, sourced from Markets Gazette.

  • 6/15/2026POSITIVE
    Why Tower Semiconductor Shares Are Trading Higher By Around 5%; Here Are 20 Stocks Moving Premarket

    Tower Semiconductor Ltd. experienced a significant pre-market surge of approximately 4.7%, driven by the announcement of a multi-year supply agreement and the successful resolution of intellectual property disputes. This positive development suggests improved operational stability and future revenue streams for the company. Investors are likely reacting to the reduced legal and operational uncertainties, which could pave the way for stronger financial performance and enhanced market position. The stock's upward movement indicates renewed confidence in Tower Semiconductor's business prospects.

  • 5/14/2026POSITIVE
    Tower Semiconductor Analysts Boost Their Forecasts Following Better-Than-Expected Q1 Earnings

    Tower Semiconductor Ltd. (NASDAQ:TSEM) has reported first-quarter earnings that surpassed analyst expectations, prompting a positive revision of future guidance. The company's shares saw an immediate uptick of 2.3% following the announcement. While specific figures for the Q1 beat and Q2 guidance are not detailed in this report, the market's reaction and analyst sentiment suggest a robust operational performance. This positive momentum, coupled with potentially upgraded analyst ratings (though older ratings are provided), indicates a favorable outlook for TSEM investors, signaling potential for continued stock appreciation.

  • 5/13/2026POSITIVE
    Tower Semiconductor Shares Rise Over 7% After Key Trading Signal

    Tower Semiconductor experienced a significant surge, with its shares climbing over 7% following the appearance of a key trading signal. The stock reached an intraday high of $246.86, indicating strong positive momentum. This price action suggests that technical indicators are aligning favorably for the semiconductor manufacturer, potentially attracting further investor interest and signaling a bullish outlook in the short term. Investors will be watching to see if this upward trend is sustained.

  • 4/23/2026NEUTRAL
    Here's How Much $1000 Invested In Tower Semiconductor 10 Years Ago Would Be Worth Today

    An investment of $1000 in Tower Semiconductor (TSEM) made ten years ago would be worth approximately $2,500 today, assuming reinvestment of dividends. This represents a compound annual growth rate of roughly 9.6%. The company, a key player in the semiconductor manufacturing industry, has navigated market cycles and technological shifts, with its stock performance reflecting industry trends and company-specific developments. Investors considering TSEM should analyze its current market position, competitive landscape, and future growth prospects, particularly in light of ongoing global chip demand and supply chain dynamics.

  • 3/19/2026POSITIVE
    Tower Semiconductor Rallies On AI Power Wall, Oriole Networks Updates

    Tower Semiconductor shares surged on Thursday, buoyed by significant investor interest stemming from two key developments in Artificial Intelligence infrastructure. The company's enhanced position in next-generation data center technology has captured market attention. This positive momentum suggests that Tower Semiconductor is well-aligned with the growing demand for advanced chip manufacturing capabilities essential for AI advancements, potentially leading to increased demand for its foundry services and a re-evaluation of its market valuation by investors.

  • 3/16/2026POSITIVE
    Why Tower Semiconductor Stock Jumped Today

    Tower Semiconductor Ltd. experienced a significant stock surge today, driven by the escalating demand for high-speed solutions within AI data centers. This trend highlights the critical role of advanced semiconductor manufacturing in powering the next generation of artificial intelligence infrastructure. Investors are likely reacting to the company's strategic positioning to capitalize on this burgeoning market, anticipating increased orders and revenue growth as AI adoption accelerates globally. The company's specialized fabrication capabilities are becoming increasingly vital for meeting the complex processing needs of AI applications.

  • 3/10/2026NEGATIVE
    Hood River Sells 1.1 Million Shares of Tower Semiconductor Stock

    Hood River has divested 1.1 million shares of Tower Semiconductor stock, a significant move indicating potential reduced confidence or a strategic portfolio adjustment by the selling entity. Tower Semiconductor, a provider of analog and mixed-signal solutions for consumer, industrial, and automotive sectors, may face downward price pressure following this large sell-off. Investors will be watching for further commentary or market reaction to understand the full implications of this transaction on Tower's stock performance.

  • 3/2/2026POSITIVE
    Why Tower Semiconductor Rallied Today

    The Israeli stock exchange experienced an unexpected rally following the outbreak of conflict with Iran, and Tower Semiconductor, a leading Israeli-headquartered semiconductor manufacturing company, directly benefited from this surge. This rally, despite occurring amidst geopolitical tension, suggests significant resilience in the local market or a perception of opportunities in strategic sectors. Investors might interpret this as a signal that, even in times of uncertainty, certain key companies maintain their appeal or even see their position strengthened. It is crucial to monitor regional stability and the long-term impact on Tower Semiconductor's operations and supply chain, but today's signal is clearly positive for the stock.

  • 3/1/2026NEGATIVE
    G2 Investment Partners Dumped Tower Semiconductor Shares Worth Over $20 Million. Is the Stock a Buy or Sell?

    Markets Gazette reports a potentially negative signal for Tower Semiconductor. G2 Investment Partners has divested over $20 million worth of the company's shares. This move by a significant investment partner could indicate a reassessment of confidence or a strategic portfolio repositioning. Tower Semiconductor is recognized for its specialization as an analog-focused foundry, providing customizable semiconductor solutions to a broad global client base across diverse industries. While the company boasts a robust operational foundation, G2 Investment Partners' decision to liquidate such a substantial stake might be interpreted by investors as a cautionary sign, suggesting potential downward pressure on the stock in the near term. Investors should closely monitor the company's upcoming announcements and market performance.

via Markets Gazette