Tower Semiconductor Ltd. TSEM

Information TechnologySemiconductors & Semiconductor EquipmentIsrael

Last close 193.52 USD on Nov 1, 2026, +41.8% year to date

Quant rating

Quant rating B Rank 54 of 200 in Information Technology

Growth B 53 of 200
Valuation C 94 of 200
Quality B 49 of 200
Revisions B 52 of 200
Momentum C 96 of 200

Wall Street consensus Buy (1.88)Average target 315.38 USD +63.0%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 18.9B
Enterprise value: 17.5B
52-week range: 80.64 – 319.84
3-year range: 23.01 – 319.84
Dividend yield: –
Beta (5 years): 0.95
Shares outstanding: 114M
Next earnings: Nov 9, 2026

About the company

Tower Semiconductor Ltd. operates as an independent semiconductor foundry focused primarily on specialty process technologies. The Company focuses on producing integrated circuits (ICs) based on the design specifications of its customers. The Company manufactures semiconductors for its customers primarily based on third-party designs. It offers process manufacture geometries of 0.35, 0.50, 0.55, 0.60, 0.80-micron and above on 150 millimeter wafers, 0.35, 0.18. 0.16, 0.13 and 0.11-micron on 200 millimeter wafers, and 65 nanometer and 45 nanometer on 300 millimeter wafers. It also provides design support and technical services. The Company's ICs are incorporated into a range of products in markets, including consumer electronics, personal computers, communications, automotive, industrial and medical device products. The Company has manufacturing facilities in the United States, Israel and Japan.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	1,566	1,436	1,423	1,678	1,508	–
Revenue growth	9.1%	0.9%	−15.2%	11.2%	19.2%	4.4%
EPS (basic, normalized)	2.29	2.15	2.22	2.54	1.61	–
EPS growth	6.5%	−3.2%	−12.6%	57.8%	–	–
Gross margin	23.2%	23.6%	24.8%	27.8%	21.8%	24.3%
Net margin	14.1%	14.5%	36.4%	15.8%	9.9%	18.1%
ROE	7.9%	8.2%	24.0%	15.1%	9.7%	13.0%

Balance sheet, last quarter
Cash & short-term investments (mil)	1,481
Current ratio	4.91x
Long-term debt (mil)	125
Net debt (mil)	−1,340
Total equity (mil)	3,071
Net debt / equity	−0.44x
Net debt / EBITDA	−2.50x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	1,566	+9.1%	11.2x	537	+12.4%	32.7x	2.29	+6.5%	84.5x
2026	1,970	+25.8%	8.9x	772	+43.8%	22.7x	3.93	+71.6%	49.3x
2027	2,705	+37.3%	6.5x	1,175	+52.2%	14.9x	6.84	+74.0%	28.3x
2028	3,603	+33.2%	4.9x	1,708	+45.3%	10.3x	10.57	+54.6%	18.3x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	1,970	0.0%	+4.2%	+7.6%	3.93	−0.1%	+16.9%	+32.6%
2027	2,705	0.0%	+6.5%	+16.7%	6.84	−0.5%	+17.1%	+40.4%
2028	3,603	+0.2%	+7.7%	+27.7%	10.57	0.0%	+15.2%	+60.5%

Earnings surprises EPS beat in 4 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	327	351	371	387	358	372	396	440	414	460
Sales mean (mil)	325	350	370	387	358	372	394	440	411	455
Surprise	+0.8%	+0.3%	+0.1%	0.0%	0.0%	+0.1%	+0.4%	+0.1%	+0.6%	+1.2%
EPS reported	0.46	0.53	0.57	0.59	0.45	0.50	0.55	0.78	0.65	0.88
EPS mean	0.39	0.45	0.53	0.52	0.38	0.45	0.54	0.68	0.56	0.76
Surprise	+16.8%	+17.8%	+7.5%	+12.9%	+19.0%	+10.6%	+2.2%	+14.0%	+15.7%	+16.1%

Peer comparison Semiconductors & Semiconductor Equipment

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
TSEM Tower Semiconductor Ltd.	18.9B	−2.50x	14.1%	6.10x	49.3x	28.3x	22.7x	14.9x
2330 Taiwan Semiconductor Manufacturing Company Limited	1.89T	−1.13x	45.1%	8.78x	21.5x	16.0x	14.2x	10.3x
NVDA NVIDIA Corporation	4.93T	−0.47x	55.6%	21.58x	22.0x	12.9x	17.7x	10.5x
AVGO Broadcom Inc	1.56T	0.82x	36.2%	15.62x	28.2x	17.0x	21.9x	13.5x
MU Micron Technology, Inc.	1.00T	−0.35x	63.8%	7.23x	5.1x	4.3x	3.9x	3.3x
AMD Advanced Micro Devices, Inc.	824.1B	−1.16x	12.3%	12.26x	66.0x	31.5x	50.1x	23.8x
Mean		−0.80x	37.8%	11.93x	32.0x	18.3x	21.8x	12.7x
Median		−0.80x	40.6%	10.52x	25.1x	16.5x	19.8x	12.0x

Technical analysis

1M−26.3%
3M−18.0%
1Y+107.5%
3Y+617.0%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Tower Semiconductor Ltd., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	1,566	1,436	1,423	1,678	1,508	1,266
Cost of revenue	1,202	1,097	1,069	1,211	1,179	1,032
Gross profit	364	339	354	466	329	233
Selling, general & administrative expenses	83.2	75.0	72.5	80.3	77.2	64.0
Research & development	86.5	79.4	79.8	83.9	85.4	78.3
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	0	−6.3	−346	−9.6	–	–
Other operating expenses	0	0	0	0	0	0
Operating income	194	191	547	312	167	91.0
Net interest income (expense)	57.5	52.7	33.7	−6.1	−10.8	3.9
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	−11.3	−26.6	3.9	−13.6	−0.6	−6.2
Net income before taxes	240	217	585	292	155	88.7
Provision for taxes	21.6	10.2	65.3	25.5	1.0	5.4
Minority interest	1.7	0.6	−1.0	−1.9	−4.1	−1.0
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	220	208	518	265	150	82.3
Extraordinary items	–	–	–	–	–	–
Net income	220	208	518	265	150	82.3
EBIT, normalized	194	185	201	302	167	91.0
EBITDA, normalized	497	451	459	595	437	332
Basic EPS, normalized	2.29	2.15	2.22	2.54	1.61	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Tower Semiconductor Ltd., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	1,152	1,218	1,236	1,006	765	711
Receivables	264	240	177	176	150	174
Total inventory	257	268	283	302	235	199
Prepaid expenses	21.9	33.0	11.1	9.8	36.8	7.0
Other current assets	14.5	0.8	1.9	1.7	10.3	11.6
Total current assets	1,710	1,760	1,709	1,495	1,196	1,103
Property, plant & equipment	1,581	1,294	1,166	973	891	858
Goodwill	7.0	7.0	7.0	7.0	7.0	7.0
Intangibles	1.5	3.2	5.1	7.0	11.8	11.0
Long-term investments	4.4	8.7	8.5	8.8	39.6	40.7
Note receivable	–	–	–	–	–	–
Other long-term assets	19.0	6.9	23.1	57.0	85.8	74.4
Total assets	3,322	3,080	2,919	2,548	2,231	2,094
Liabilities
Accounts payable	124	131	139	151	78.7	96.9
Payable/accrued	–	–	–	–	–	–
Accrued expenses	3.1	3.9	3.7	3.4	5.1	7.4
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	25.0	44.5	55.5	59.1	79.4	100.0
Other current liabilities	112	106	78.5	174	113	68.6
Total current liabilities	264	285	277	387	276	273
Long-term debt	120	128	166	203	221	271
Minority interest	−14.7	−13.1	−5.5	−2.6	−6.6	−2.9
Other liabilities	33.5	26.8	48.3	68.8	118	95.0
Total liabilities	403	427	486	656	609	636
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	451	447	444	440	435	431
Additional paid-in capital	1,374	1,378	1,381	1,384	1,389	1,393
Retained earnings (accumulated deficit)	896	675	468	−50.9	−315	−465
Treasury stock	−9.1	−9.1	−9.1	−9.1	−9.1	−9.1
Other equity	208	162	149	127	122	108
Total equity	2,919	2,653	2,432	1,891	1,622	1,458
Total liabilities & shareholders' equity	3,322	3,080	2,919	2,548	2,231	2,094

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Tower Semiconductor Ltd., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	219	207	520	266	154	83.3
Depreciation, depletion & amortization	303	266	258	293	271	241
Deferred taxes	–	−2.0	27.0	13.1	−10.3	2.2
Non-cash items	10.5	24.9	−8.7	17.3	−0.3	11.9
Changes in working capital	−137	−47.7	−119	−59.7	7.1	−61.3
Cash from operations	395	449	677	530	421	277
Investing activities
Capital expenditures	−444	−436	−445	−366	−314	−314
Other investing cash flows	46.3	35.9	−276	37.0	−25.1	−50.0
Cash from investing	−398	−400	−721	−329	−339	−364
Financing activities
Financing cash flow items	0	–	1.9	11.7	–	–
Cash dividends paid	–	–	–	–	–	–
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−33.4	−32.5	−32.3	−78.3	−76.9	−61.2
Cash from financing	−33.4	−32.5	−30.4	−66.7	−76.9	−61.2
Foreign exchange effects	−0.6	−4.8	−5.4	−3.9	−6.2	4.4
Net change in cash	−36.5	11.2	−80.1	130	−0.8	−144
Free cash flow	−48.9	12.5	232	163	107	−37.1

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.