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Tower Semiconductor (TSEM) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NasdaqGS•Technology•Semiconductors
A
ExcellentMetricSide Score: 86/100
ProfitabilityProfit25/30
GrowthGrowth25/25
Balance SheetBalance25/25
Cash QualityCash11/20
Price & Volume

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

Moat Signals

Competitive analysis based on 81 quarters of fundamental data

Pricing Power

Strong Moat

Operating margins are expanding at ~13.4%, suggesting durable pricing power and cost discipline.

Competitive Advantage

Moderate Moat

ROE is positive at ~9.1% on average, adequate but below the threshold typically associated with wide moats.

Cash Generation

Risk Signals

Data-driven red flags and warnings across 81 quarters

Some Concerns

Margin Pressure

Healthy

Margins are stable or improving at ~13.8% — no sign of cost or pricing stress.

Earnings Quality

Red Flag

FCF consistently trails net income (avg 0.6x) — earnings may be inflated by non-cash items or aggressive accounting.

Leverage Risk

Healthy

D/E ratio is 0.0 — conservative capital structure with low financial risk.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Watch

FCF turned negative in 3 of the last 8 quarters — occasional cash consumption.

Share Dilution

Watch

Shares outstanding rose 2.1% — mild dilution. Compare to earnings growth to assess net per-share impact.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$1.62B
10.5%
Q. Revenue
$413.63M
TTM EBITDA
$571.92M
20.8%
TTM Op. Income
$225.84M
18.7%
Q. Op. Income
$64.56M
TTM Net Income
$245.36M
20.6%
Q. Net Income
$65.03M
EPS
N/A
Shares Out.
$114.34M
1.1%
$1.62B in TTM revenue grew 10.5% YoY, reaching $413.63M last quarter. TTM EBITDA of $571.92M and TTM operating income of $225.84M shows growth is flowing through. Net income of $245.36M TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin
35.7%
Op. Margin
15.6%
69.9%
Net Margin
15.7%
40.3%
Op. margin of 15.6% is up 6.4% YoY — cost efficiency is improving. Net margin at 15.7%.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
73.9x
P/S Ratio
11.2x
P/B Ratio
6.1x
At 73.9x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 11.2x and P/B of 6.1x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$3.70B
Cash
$243.31M
Long-Term Debt
$130.75M
Book Value
$2.97B
D/E Ratio
0.0
Debt/EBITDA
0.9
With $3.70B in assets and $130.75M in long-term debt, the D/E of 0.0and book value of $2.97B — shows a conservative capital structure — the company has a strong financial cushion to weather downturns.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Free Cash Flow
$353.60M
2121.8%
FCF Margin
21.8%
FCF / Net Income
5.4
FCF of $353.60M. The FCF / Net Income ratio of 1.4x means earnings are well backed by actual cash — high-quality earnings.

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Moderate Moat

5 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.

Demand Durability

Strong Moat

TTM revenue has grown consistently (7 of 7 quarters up), with ~16.8% growth over the period. Strong demand durability.