Stock Analysis
Tower Semiconductor LtdTSEM
P/E 100.27×· not meaningful — TTM earnings temporarily depressed
Sector: Technology · Industry: Semiconductors
AnalystsStrong Buy11 analystsPrice is 50% of the way from the year's low to its high.
Cash covers 1045% of debt · FY 2025.
PMP Verdict
High quality, but expensive
Strengths
- Financial Health100
- Quality77
Risks
- Valuation10
- Profitability49
Excellent business. Weak entry price.
Market context
-6.8% today· Z 1.9σ
Bull Case
- ✓Altman Z 20.3 — safe-zone balance sheet
- ✓Interest coverage 49.7× — debt well covered
What's happening with TSEM
Profile
Strong financial health and earnings quality; valuation, moat and profitability lag behind.
How is each axis scored?
- Valuation10/100 · Weak
- P/E vs own history (90th pct)0/25
- FCF yield (1.4%)5/25
- P/S (13.9x)5/25
- EV/EBIT (105.5x)0/25
- Growth63/100 · Moderate
- Revenue CAGR (0.9%)6/25
- Net income CAGR (10.1%)20/25
- EPS CAGR 5Y (9.1%)12/25
- Fwd implied growth (143.5%)25/25
- Profitability49/100 · Weak
- ROIC (8.9%)12/25
- ROE (7.2%)5/25
- Net margin (14.1%)20/25
- Operating margin (12.4%)12/25
- Financial Health100/100 · Strong
- Altman Z (20.29)25/25
- Current ratio (4.91)25/25
- Interest coverage (49.7x)25/25
- Net cash / debt (Net cash)25/25
- Quality77/100 · Strong
- Piotroski F (5/9)15/25
- Beneish M (-1.95)12/25
- FCF conversion (136%)25/25
- Margin stability (σ 2.4%)25/25
- Moat42/100 · Weak
- ROIC >12% years (1/5 yrs)0/25
- Median gross margin (23.6%)6/25
- FCF-positive years (4/5 yrs)18/25
- Worst-year net margin (worst 9.9%)18/25
About Tower Semiconductor Ltd
Tower Semiconductor Ltd is a pure-play specialty foundry that manufactures semiconductors. Show more
As a pure-play foundry, it focuses on producing integrated circuits (ICs) based on the design specifications of customers. The company's line of integrated circuits is incorporated into markets, including consumer electronics, personal computers, communications, automotive, and industrial and medical device products. It produces ICs alongside wholly-owned subsidiaries through fabrication facilities located in Japan. The company has a geographical presence in the USA, Japan, Asia (other than Japan), and Europe.
Employees: 5,316 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
10EP/E (TTM)99xC
Grade C: DistortedTTM earnings are temporarily depressed — this multiple overstates expensiveness. Forward P/E is a better guide — vs own 5Y history: 6.1x–163.3x · 90th pct
P/FCF15.8xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative · Elevated investment — CapEx = 65% of operating cash flow, weighing on reported FCF
FCF Yield1.4%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: -1.5%–9.6% · 50th pct · Elevated investment — CapEx = 65% of operating cash flow, weighing on reported FCF
P/S (TTM)13.94xD
Grade D: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 1.4x–23.0x · 90th pct
EV/EBIT105.5xD
Grade D: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 4.7x–178.5x · 90th pct
EV/Sales—
Enterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E40.7xD
Grade D: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio7.11xC
Grade C: ExpensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio1.81B
Grade B: FairFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield—
TTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio—
Dividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Elevated investment: Elevated investment — CapEx = 65% of operating cash flow, weighing on reported FCF
Profitability
49D+ROIC8.9%C
Grade C: AverageNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE7.2%D
Grade D: WeakReturn on Equity. Neg. equity = heavy buybacks
ROA8.3%C
Grade C: AverageReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin14.1%A
Grade A: HighNet Income / Revenue
Operating Margin12.4%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin23.2%D
Grade D: LowGross Profit / Revenue
FCF Margin19.2%A
Grade A: HighFCF / Revenue · Elevated investment — CapEx = 65% of operating cash flow, weighing on reported FCF
True FCF Margin19.2%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost · Elevated investment — CapEx = 65% of operating cash flow, weighing on reported FCF
Growth
63BRevenue CAGR0.9%D
Grade D: LowCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR10.1%C
Grade C: OkCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)9.1%C
Grade C: OkCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth143.5%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)—
Share count change over 5Y
SBC / Net Income—
Stock-based comp/Net income. >30% = dilution risk
SBC / Revenue—
TTM stock-based comp / TTM Revenue
Financial Health
100A+Altman Z-Score20.29A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio4.91xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio4.31xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage49.7xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt RepaymentNet CashA
Grade A: FastYears to repay net debt via FCF · Elevated investment — CapEx = 65% of operating cash flow, weighing on reported FCF
Net Debt/EBITNet CashA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.05xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt10.45xA
Grade A: CoveredCash covers how much of total debt. >1 = could repay all debt from cash
Quality
77B+Piotroski F-Score5/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-1.95C
Grade C: Gray zoneEarnings manipulation risk. < -2.22 Safe
FCF Conversion136.3%A
Grade A: StrongFCF / Net Income · Elevated investment — CapEx = 65% of operating cash flow, weighing on reported FCF
Margin Stability2.4%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue36.1%D
Grade D: HeavyTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.56xC
Grade C: AverageRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Chelouche Yoav Filed | Chelouche Yoav | SellOpen market sale | -232 | |
Ellwanger Russell Craig Filed | Ellwanger Russell Craig | SellOpen market sale | -2489 | |
Ellwanger Russell Craig Filed | Ellwanger Russell Craig | SellOpen market sale | -2098 | |
Ellwanger Russell Craig Filed | Ellwanger Russell Craig | SellOpen market sale | -3331 | |
Ellwanger Russell Craig Filed | Ellwanger Russell Craig | SellOpen market sale | -15816 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Ellwanger Russell Craig Filed | Ellwanger Russell Craig | SellOpen market sale | -35208 | |
Ellwanger Russell Craig Filed | Ellwanger Russell Craig | SellOpen market sale | -23028 | |
Ellwanger Russell Craig Filed | Ellwanger Russell Craig | SellOpen market sale | -5065 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
42D+ROIC >12% Years1/5 yrsD
Grade D: WeakShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)23.6%D
Grade D: WeakMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years4/5 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor9.9%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$1.95
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$13.16
Cash & short-term investments per share (Finnhub)
Book Value / Share$27.29
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$141.70M
Total debt obligations (short + long term)
Cash & Equiv.$1.48B
Cash and short-term investments
Net Debt$-1.34BA
Grade A: Net CashTotal Debt minus Cash. Negative = Net Cash position
Total Equity$3.07B
Shareholders' equity (book value)
Asset / Liability5.39xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$21.83B
Current Market Capitalization
Beta0.92B
Grade B: MarketPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Dec 2025 · Ratio snapshot Oct 17, 2026
Key Insights: Tower Semiconductor Ltd (TSEM)
TSEM is down 6.78% at the last close. Piotroski F-Score of 5/9 indicates mixed fundamentals for Tower Semiconductor Ltd. Altman Z-Score of 20.29 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk.
- Tower Semiconductor Ltd converts about 19% of revenue into free cash flow — strong cash generation.
- Company is effectively debt-free after netting cash.
- At a valuation score of 10/100, TSEM trades at a premium to its historical multiples (P/E 99.0).
See how TSEM ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all TSEM moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 14 | After-hours | 204.00 | -8.19% | -2.07 |
| Oct 8 | Regular | 225.88 | -9.01% | -2.37 |
| Oct 8 | After-hours | 229.17 | -7.69% | -2.04 |
| Sep 21 | Regular | 235.41 | +5.28% | 3.52 |
| Sep 21 | After-hours | 234.84 | +5.03% | 3.35 |
Frequently Asked Questions about TSEM
What is the current Tower Semiconductor Ltd (TSEM) stock price?
TSEM is trading at $195.58 at the last market close, down 6.78% on the session. PreMarketPrice tracks TSEM pre-market, intraday and after-hours prices.
Is TSEM stock a buy right now?
PreMarketPrice's quantitative model rates Tower Semiconductor Ltd's financial health at 100/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is TSEM stock overvalued?
Tower Semiconductor Ltd trades at a trailing P/E of 99.0 and our valuation score rates it 10/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Tower Semiconductor Ltd report earnings?
No confirmed earnings date is currently scheduled for TSEM. The Earnings section lists recent reports and updates as dates are announced.
What sector does Tower Semiconductor Ltd operate in?
Tower Semiconductor Ltd operates in the Technology sector, within the Semiconductors industry. The Related Stocks section lists sector peers for comparison.
What does Tower Semiconductor Ltd do?
Tower Semiconductor Ltd is a pure-play specialty foundry that manufactures semiconductors.
About Tower Semiconductor Ltd (TSEM) Stock
Tower Semiconductor Ltd (TSEM) is a US-listed stock operating in the Technology sector, specifically the Semiconductors industry. As of the latest update, Tower Semiconductor Ltd is trading at $195.58, down 6.78% on the day with a market capitalization of $21.8 billion. The financial health score for TSEM is 100/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for TSEM stock.
TSEM Stock Analysis & Key Metrics
On PreMarketPrice, you can track Tower Semiconductor Ltd (TSEM) across multiple dimensions:
- Pre-market price & movement: Real-time TSEM stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for TSEM with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Tower Semiconductor Ltd across multiple reporting periods.
- Financial health score: A composite score of 100/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for TSEM.
- Sector peers: Compare TSEM against 6 other technology stocks on key financial metrics.
Is TSEM a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Tower Semiconductor Ltd (TSEM) as an investment. The financial health score of 100/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Tower Semiconductor Ltd (TSEM) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.