Tower Semiconductor LTD is a US-listed company in the semiconductors industry. Its financial year ends in December.
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Under review: our cash-flow value ($14.45) was left out of our combined valuation (it is 0.09x the share price, outside the 0.2-5x range we accept), so it can't be the basis of a rating.
Under review: our cash-flow value ($14.45) was left out of our combined valuation (it is 0.09x the share price, outside the 0.2-5x range we accept), so it can't be the basis of a rating. We'll show the comparison once resolved.
Tower Semiconductor LTD valuation: adjust assumptions and compare models →
What company insiders, investment funds and members of Congress have been doing with the stock, from their own filings.
Revenue for the twelve months was $1.57bn, up 9.1% on a year earlier, faster than the 0.9% growth a quarter earlier. Free-cash-flow margin fell to -3.1% from 7.0% a year earlier. Against its peers on growth, profitability, cash generation and balance sheet, it grades C+. It passes 7 of our 7 financial-health checks.
Our model value for Tower Semiconductor is under review, so past values are not shown until it is resolved.
Written from the company's filings and our models when each quarter's report arrives. Figures in older notes are as published at the time. Not investment advice.
Tower Semiconductor LTD's trailing-twelve-month revenue grew 9.1% year on year, with a free-cash-flow margin of -3.1%. Where it lags: gross margin of 23.2% ranks 62 of 73 semiconductor companies we cover.
Our discounted-cash-flow model values the business at ~$14 per share in the base case (~$13–$16 across growth scenarios) — model values under stated assumptions, not a price target.
Current signal Net income rising while operating cash flow falls: TTM net income grew 6.1% while operating cash flow fell 11.9% — earnings and cash are telling different stories.
Assembled from SEC-filed figures — the full workings are on this page and in our methodology. Observations, not recommendations.
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Company announcements, filed results and changes that matter to shareholders.
Our value per share comes from a discounted-cash-flow model of Tower Semiconductor LTD's free cash flow after stock-based pay ( $37M, FY2025 Q4 TTM, with after-tax interest added back): growth for five years as below (the first two years from forecasts, guidance and the company's record), fading to 2.5%, discounted at 8.5%, then cash added and debt and other claims subtracted. These are model values under stated assumptions, not price targets or recommendations.
The inputs used by the models below have passed source checks. Individual model values are available below and in the interactive valuator. Their differences are shown explicitly; the platform combined value and recommendation remain withheld.
We value Tower Semiconductor LTD as an operating company, with every model that fits that kind of business. Cost of equity 12.3%: the 10-year Treasury yield (4.9%) plus a beta of 1.64 times a 4.5% equity risk premium.
| Model | Value per share | In the combined value? |
|---|---|---|
| Cash-flow model (DCF) Free cash flow to the firm (after stock pay, with after-tax interest added back), grown then faded to 2.5%, discounted at 8.5% as the firm rate, less debt and other claims. | ~$14 ~$13–$16 | Left out: out of range vs price (0.09x) |
| Growth cash-flow model Revenue for this year and next from analysts' consensus, then growth fading to 2.5%; the operating margin moving to profitable peers'; investment needed per dollar of growth from peers; reduced by a failure probability. For young or fast-growing companies. The starting margin is normalized to between -100% and 60%; net margin is a proxy when operating income is not tagged. Uses analysts' consensus estimates (third-party data), not our forecasts. | ~$85 ~$54–$110 | Included |
| Forward price-to-earnings vs peers Next year's consensus earnings per share times peers' typical (harmonic-mean) forward price-to-earnings. Uses analysts' consensus estimates (third-party data), not our forecasts. | ~$100 ~$95–$180 | Included |
| Residual income Book value plus the present value of returns above the cost of equity, fading over ten years. | ~$28 ~$20–$40 | Left out: out of range vs price (0.18x) |
| Justified price-to-book Book value times (return on equity - growth) / (cost of equity - growth): steady-state returns. | ~$28 ~$25–$31 | Left out: out of range vs price (0.18x) |
| Combined value Individual source-checked model scenarios are available. The platform combined value and recommendation remain withheld. | — | Combined value withheld. Review the individual models and their assumptions. |
Different models fail in different ways, so where several apply we average them rather than trust one. Peer-based models compare Tower Semiconductor LTD with Semiconductors in our coverage, using third-party market data. Model values are estimates under stated assumptions, updated as new filings arrive; not price targets or investment advice. How each model works.
| At fiscal year end | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Share price | $14.06 | $19.03 | $34.08 | $14.74 | $24.06 | $25.82 | $39.68 | $43.20 | $30.52 | $51.51 | $117.42 |
| Market value | $1.0bn | $1.9bn | $3.6bn | $1.5bn | $2.6bn | $2.8bn | $4.4bn | $4.8bn | $3.4bn | $5.8bn | $13.3bn |
| + Net debt (− = net cash) | −$176m | −$355m | −$446m | −$338m | −$110m | $72m | $20m | $27m | $30m | −$66m | −$49m |
| Enterprise value | $870m | $1.6bn | $3.2bn | $1.2bn | $2.5bn | $2.9bn | $4.4bn | $4.8bn | $3.4bn | $5.7bn | $13.3bn |
| Multiples | |||||||||||
| Price / sales | 1.1x | 1.5x | 2.6x | 1.2x | 2.1x | 2.2x | 2.9x | 2.9x | 2.4x | 4.0x | 8.5x |
| Price / earnings | — | 9.5x | 12.1x | 11.1x | 28.7x | 34.0x | 29.0x | 18.1x | 6.5x | 27.8x | 60.5x |
| Price / free cash flow | — | 17.5x | 21.5x | 14.7x | 25.9x | — | 40.5x | 29.3x | 14.6x | n/m | — |
| EV / EBITDA | 3.5x | 4.2x | 7.4x | 3.2x | 8.2x | 8.7x | 10.0x | 8.0x | 4.3x | 12.5x | 26.7x |
Weak moat
How hard Tower Semiconductor's competitive advantage looks for rivals to wear away, judged from 5 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.
Gross margin has been a median 21.8%, moving by 13.2 percentage points (standard deviation) across 5 years.
Operating margin has been a median 11.0%; its worst year was -27.4%.
Free cash flow was positive in 3 of 5 years, at a median 2.6% of revenue.
AI disruption exposure: Low. In this industry, the business rests on physical assets, regulated networks or products AI itself depends on.
| Fiscal year | EPS | Growth | Revenue | Growth |
|---|---|---|---|---|
| Current | $3.89 | +70% | $2.0bn | +26% |
| Next | $6.71 | +72% | $2.7bn | +38% |
Next year's EPS estimate has moved +15.3% in 90 days, across 10 analysts.
The consensus EPS forecast for the current fiscal year is +17.9% on 90 days ago. In the last 30 days, 1 analyst raised Tower Semiconductor LTD's forecast and 0 cut it.
Average of analysts' published estimates (third-party data).
| Period | Current fiscal year | Next fiscal year |
|---|---|---|
| 90 days ago | $3.30 | $5.82 |
| 60 days ago | $3.86 | $6.51 |
| 30 days ago | $3.89 | $6.71 |
| 7 days ago | $3.89 | $6.71 |
| Now | $3.89 | $6.71 |
| Quarter to | Estimate | Actual | Surprise |
|---|---|---|---|
| Jun 2026 | $0.76 | $0.88 | +16.1% |
| Mar 2026 | $0.56 | $0.65 | +15.7% |
| Dec 2025 | $0.68 | $0.78 | +14.1% |
| Sept 2025 | $0.54 | $0.55 | +1.4% |
Adjusted EPS as companies report it, against the average analyst estimate.
| Calendar year | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 to date |
|---|---|---|---|---|---|---|
| Return | ||||||
| TSEM | +54% | +9% | −29% | +69% | +128% | +32% |
| Industry peers (median) | +35% | −39% | +16% | −15% | +16% | +13% |
| S&P 500 | +29% | −18% | +26% | +25% | +18% | +11% |
| Months that ended higher | ||||||
| TSEM | 75% | 33% | 42% | 75% | 75% | 55% |
| S&P 500 | 75% | 42% | 67% | 75% | 75% | 46% |
| Largest fall from a high during the year | ||||||
| TSEM | −24% | −22% | −52% | −16% | −46% | −51% |
| S&P 500 | −5% | −25% | −10% | −8% | −19% | −9% |
Worst fall since November 2, 2015: 62% from January 8, 2018 to March 16, 2020. Getting back needed a 165% gain, reached on November 8, 2021, 602 days after the low.
Source: SEC EDGAR filings. Retrieved Invalid Date.
| Period | Revenue (TTM) |
|---|---|
| FY14 Q4 | $828M |
| FY15 Q4 | $960.6M |
| FY16 Q4 | $1.2B |
| FY17 Q4 | $1.4B |
| FY18 Q4 | $1.3B |
| FY19 Q4 | $1.2B |
| FY20 Q4 | $1.3B |
| FY21 Q4 | $1.5B |
| FY22 Q4 | $1.7B |
| FY23 Q4 | $1.4B |
| FY24 Q4 | $1.4B |
| FY25 Q4 | $1.6B |
Source: SEC EDGAR filings. Retrieved Invalid Date.
| Period | Revenue growth, TTM YoY |
|---|---|
| FY14 Q4 | 64.0% |
| FY15 Q4 | 16.0% |
| FY16 Q4 | 30.1% |
| FY17 Q4 | 11.0% |
| FY18 Q4 | -6.0% |
| FY19 Q4 | -5.4% |
| FY20 Q4 | 2.6% |
| FY21 Q4 | 19.2% |
| FY22 Q4 | 11.2% |
| FY23 Q4 | -15.2% |
| FY24 Q4 | 0.9% |
| FY25 Q4 | 9.1% |
Source: SEC EDGAR filings. Retrieved Invalid Date.
| Period | Operating margin (TTM) |
|---|---|
| FY14 Q4 | -12.5% |
| FY15 Q4 | 8.5% |
| FY16 Q4 | 14.0% |
| FY17 Q4 | 15.8% |
| FY18 Q4 | 11.9% |
| FY19 Q4 | 7.0% |
| FY20 Q4 | 7.2% |
| FY21 Q4 | 11.0% |
| FY22 Q4 | 18.6% |
| FY23 Q4 | 38.5% |
| FY24 Q4 | 13.3% |
| FY25 Q4 | 12.4% |
Source: SEC EDGAR filings. Retrieved Invalid Date.
| Period | FCF margin (TTM) |
|---|---|
| FY14 Q4 | 0.2% |
| FY15 Q4 | -0.2% |
| FY16 Q4 | 8.8% |
| FY17 Q4 | 12.1% |
| FY18 Q4 | 6.8% |
| FY19 Q4 | 8.1% |
| FY20 Q4 | -3.0% |
| FY21 Q4 | 7.0% |
| FY22 Q4 | 9.7% |
| FY23 Q4 | 16.3% |
| FY24 Q4 | 0.8% |
| FY25 Q4 | -3.1% |
Each dollar Tower Semiconductor took in during FY2025, followed through to profit: what it cost to make, what went on research and running the business, and what was left after tax.
| Revenue | $1.6B | |
|---|---|---|
| Other income | $47.9M | 3.1% of revenue |
| Cost of revenue | $1.2B | 76.8% of revenue |
| Gross profit | $364M | 23.2% of revenue |
| Research and development | $86.5M | 5.5% of revenue |
| Selling, general and admin | $83.2M | 5.3% of revenue |
| Operating income | $194M | 12.4% of revenue |
| Income tax | $21.6M | 1.4% of revenue |
| Net income | $220M | 14.1% of revenue |
| Fiscal year | 2009 Dec 2009 | 2010 Dec 2010 | 2011 Dec 2011 | 2012 Dec 2012 | 2013 Dec 2013 | 2014 Dec 2014 | 2015 Dec 2015 | 2016 Dec 2016 | 2017 Dec 2017 | 2018 Dec 2018 | 2019 Dec 2019 | 2020 Dec 2020 | 2021 Dec 2021 | 2022 Dec 2022 | 2023 Dec 2023 | 2024 Dec 2024 | 2025 Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income | |||||||||||||||||
| Revenue | 299 | 509 | 611 | 639 | 505 | 828 | 961 | 1,250 | 1,387 | 1,304 | 1,234 | 1,266 | 1,508 | 1,678 | 1,423 | 1,436 | 1,566 |
| Gross profit | −26 | 107 | 85 | 79 | 28 | 64 | 205 | 303 | 354 | 293 | 230 | 233 | 329 | 466 | 354 | 339 | 364 |
| EBITDA | 62 | 186 | 173 | 171 | 96 | 100 | 250 | 373 | 428 | 369 | 301 | 332 | 437 | 604 | 805 | 458 | 497 |
| Operating income | −82 | 43 | 10 | −3 | −55 | −104 | 82 | 175 | 220 | 155 | 87 | 91 | 167 | 312 | 547 | 191 | 194 |
| Net income | −120 | −42 | −19 | −70 | −108 | 4 | −30 | 204 | 298 | 136 | 90 | 82 | 150 | 265 | 518 | 208 | 220 |
| Diluted EPS | — | — | — | — | — | $0.07 | — | $2.09 | $2.90 | $1.32 | $0.84 | $0.76 | $1.37 | $2.39 | $4.66 | $1.85 | $1.94 |
| Growth (year on year) | |||||||||||||||||
| Revenue | — | +70.4% | +20.0% | +4.6% | −20.9% | +64.0% | +16.0% | +30.1% | +11.0% | −6.0% | −5.4% | +2.6% | +19.2% | +11.2% | −15.2% | +0.9% | +9.1% |
| EBITDA | — | +202.6% | −7.2% | −1.0% | −43.7% | +4.1% | +149.2% | +49.1% | +14.9% | −13.8% | −18.5% | +10.1% | +31.9% | +38.2% | +33.3% | −43.2% | +8.7% |
| Operating income | — | — | −76.4% | — | — | — | — | +113.9% | +25.5% | −29.5% | −44.0% | +5.0% | +82.9% | +87.2% | +75.6% | −65.0% | +1.5% |
| Net income | — | — | — | — | — | — | — | — | +46.1% | −54.5% | −33.6% | −8.6% | +82.3% | +76.4% | +96.0% | −59.9% | +6.1% |
| Diluted EPS | — | — | — | — | — | — | — | — | +38.8% | −54.5% | −36.4% | −9.5% | +80.3% | +74.5% | +95.0% | −60.3% | +4.9% |
| Margins | |||||||||||||||||
| Gross margin | −8.9% | 21.0% | 13.9% | 12.3% | 5.6% | 7.7% | 21.4% | 24.3% | 25.5% | 22.5% | 18.6% | 18.4% | 21.8% | 27.8% | 24.8% | 23.6% | 23.2% |
| EBITDA margin | 20.6% | 36.6% | 28.3% | 26.8% | 19.1% | 12.1% | 26.0% | 29.8% | 30.9% | 28.3% | 24.4% | 26.2% | 29.0% | 36.0% | 56.6% | 31.9% | 31.8% |
| Operating margin | −27.4% | 8.5% | 1.7% | −0.4% | −11.0% | −12.5% | 8.5% | 14.0% | 15.8% | 11.9% | 7.0% | 7.2% | 11.0% | 18.6% | 38.5% | 13.3% | 12.4% |
| Net margin | −40.3% | −8.3% | −3.0% | −11.0% | −21.3% | 0.5% | −3.1% | 16.3% | 21.5% | 10.4% | 7.3% | 6.5% | 9.9% | 15.8% | 36.4% | 14.5% | 14.1% |
| Free-cash-flow margin | 3.1% | 3.2% | −1.5% | −1.3% | −6.9% | 0.3% | −0.2% | 8.8% | 12.1% | 7.9% | 8.1% | −2.9% | 7.1% | 9.7% | 16.3% | 0.9% | −3.1% |
| Cash flow | |||||||||||||||||
| Cash from operations | 37 | 121 | 108 | 95 | 42 | 98 | 170 | 327 | 356 | 313 | 291 | 277 | 421 | 530 | 677 | 449 | 395 |
| Capital spending | 28 | 105 | 117 | 104 | 77 | 96 | 172 | 217 | 188 | 210 | 191 | 314 | 314 | 366 | 445 | 436 | 444 |
| Free cash flow | 9 | 16 | −9 | −9 | −35 | 2 | −2 | 110 | 168 | 103 | 100 | −37 | 107 | 163 | 232 | 13 | −49 |
| Stock-based pay | 3 | 6 | 8 | 6 | 3 | 5 | 8 | 9 | 12 | 13 | 15 | 17 | 25 | 24 | 28 | 34 | 38 |
| Free cash flow after stock pay | 6 | 10 | −17 | −14 | −38 | −3 | −9 | 101 | 156 | 90 | 85 | −54 | 82 | 139 | 204 | −21 | −87 |
| Balance sheet | |||||||||||||||||
| Cash | 82 | 100 | 101 | 123 | 113 | 187 | 176 | 355 | 446 | 385 | 356 | 212 | 211 | 341 | 261 | 272 | 235 |
| Total debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 47 | 246 | 284 | 231 | 368 | 291 | 206 | 186 |
| Net debt (negative = net cash) | −82 | −100 | −101 | −123 | −113 | −187 | −176 | −355 | −446 | −338 | −110 | 72 | 20 | 27 | 30 | −66 | −49 |
| Diluted shares | 170m | 16m | — | 22m | 40m | 63m | 74m | 101m | 106m | 103m | 107m | 108m | 110m | 111m | 111m | 112m | 114m |
| Last 12 months unless stated | TSEM | CRDO | VIAV | DIOD | PENG | MBLY | Median |
|---|---|---|---|---|---|---|---|
| Revenue, last 12 months | $1.6bn | $1.6bn | $1.5bn | $1.6bn | $1.7bn | $2.0bn | $1.1bn |
| Revenue growth, last 12 months | 9.1% | 165.1% | 40.0% | 17.8% | 26.5% | 3.4% | 13.7% |
| Revenue growth, 3-year average | 45.8% | 109.6% | 11.1% | −5.7% | 6.3% | −0.0% | 3.9% |
| Revenue growth, latest quarter | — | 114.7% | 52.5% | 21.7% | 67.7% | −2.4% | 20.1% |
| Gross margin | 23.2% | 67.1% | 57.7% | 31.7% | 27.7% | 48.6% | 48.3% |
| Operating margin | 12.4% | 31.7% | 6.9% | 4.8% | 4.0% | −207.0% | 4.8% |
| Operating margin, 3-year average | 13.1% | 11.1% | 4.8% | 4.9% | 3.3% | −132.4% | 4.8% |
| Net margin | 14.1% | 33.8% | −2.0% | 5.3% | 10.4% | −201.2% | 5.3% |
| Cash from operations / revenue | 25.3% | 31.4% | 7.5% | 15.3% | −8.8% | 20.8% | 17.4% |
| Free-cash-flow margin | −3.1% | 27.6% | 5.5% | 8.7% | −9.4% | 15.8% | 9.6% |
| Free-cash-flow margin, 3-year average | 5.3% | 12.0% | 7.0% | 6.0% | 0.9% | 20.0% | 8.5% |
| Stock pay / revenue | 2.4% | 14.8% | 3.6% | 2.0% | 1.8% | 17.1% | 5.8% |
| Change in share count | 1.1% | 2.5% | 1.7% | −0.2% | 4.8% | 0.7% | 0.9% |
| Measure | Company | Peer median | Rank |
|---|---|---|---|
| Revenue growth Growth | 9.1% | 13.7% | 46 of 75 |
| Change in growth rate Growth | +8.1pp | +3.7pp | 22 of 75 |
| Gross margin Profitability | 23.2% | 48.3% | 62 of 73 |
| Operating margin Profitability | 12.4% | 4.8% | 27 of 75 |
| Net margin Profitability | 14.1% | 5.3% | 23 of 75 |
| Free-cash-flow margin Cash generation | -3.1% | 9.6% | 56 of 75 |
| Stock pay as % of revenue Cash generation | 2.4% | 6.4% | 22 of 74 |
| Long-term debt as % of assets Balance sheet | 4.0% | 14.0% | 12 of 47 |
| Change in share count Balance sheet | 1.1% | 0.9% | 39 of 72 |
| Days sales outstanding Balance sheet | 52 days | 58 days | 26 of 62 |
Rank 1 = best in the group (for spending, debt and dilution, lower ranks first).
| Manager | Value | Shares | Share of 13F value | Shares QoQ |
|---|---|---|---|---|
| Price T Rowe Associates Inc | $1.8B | 7.0M | 11.1% | ▼ 4.5% |
| Clal Insurance Enterprises Holdings Ltd | $1.2B | 4.7M | 7.3% | ▲ 17.3% |
| Phoenix Financial Ltd. | $914M | 3.5M | 5.6% | ▲ 3.4% |
| Blackrock, Inc. | $858M | 3.3M | 5.2% | ▼ 22.9% |
| Vanguard Capital Management LLC | $815M | 3.1M | 5.0% | ▲ 2.1% |
| Jane Street Group, LLC | $763M | 2.9M | 4.6% | ▲ 146.0% |
| Harel Insurance Investments & Financial Services Ltd. | $594M | 2.3M | 3.6% | ▲ 14.5% |
| Senvest Management, LLC | $475M | 1.8M | 2.9% | ▼ 19.8% |
| Migdal Insurance & Financial Holdings Ltd. | $451M | 1.7M | 2.7% | ▼ 14.1% |
| Jupiter Topco LLC | $382M | 1.5M | 2.3% | — |
| Capital World Investors | $353M | 1.4M | 2.2% | ▲ 2.2% |
| Invesco Ltd. | $348M | 1.3M | 2.1% | ▼ 38.7% |
From Form 13F filings with the SEC ( quarterly data sets), as reported by each manager for June 30, 2026 and filed up to 45 days later. 13F reports cover long US-listed positions of managers above $100M only, so this is not Tower Semiconductor LTD's complete shareholder register. Values are as reported by the filers ; 3 inconsistently scaled filing rows were excluded.
| Insider | Date | Trade | Shares | Price | Value |
|---|---|---|---|---|---|
| Chelouche Yoav Director | September 10, 2026 | Sell | 232 | $215.06 | $49,894 |
| Ellwanger Russell Craig Chief Executive Officer | August 11, 2026 | Sell | 2,098 | $252.74 | $530,249 |
| Ellwanger Russell Craig Chief Executive Officer | August 11, 2026 | Sell | 3,331 | $250.90 | $835,748 |
| Ellwanger Russell Craig Chief Executive Officer | August 11, 2026 | Sell | 2,489 | $253.92 | $632,007 |
| Ellwanger Russell Craig Chief Executive Officer | August 11, 2026 | Sell | 15,816 | $249.66 | $3.9M |
| Ellwanger Russell Craig Chief Executive Officer | August 11, 2026 | Sell | 35,208 | $248.78 | $8.8M |
| Ellwanger Russell Craig Chief Executive Officer | August 11, 2026 | Sell | 23,028 | $248.08 | $5.7M |
| Ellwanger Russell Craig Chief Executive Officer | August 11, 2026 | Sell | 5,065 | $246.74 | $1.2M |
| Ellwanger Russell Craig Chief Executive Officer | August 11, 2026 | Sell | 11,624 | $245.78 | $2.9M |
| Ellwanger Russell Craig Chief Executive Officer | August 11, 2026 | Sell | 2,507 | $244.69 | $613,438 |
| Ellwanger Russell Craig Chief Executive Officer | August 11, 2026 | Sell | 3,060 | $243.32 | $744,559 |
| Ellwanger Russell Craig Chief Executive Officer | August 10, 2026 | Sell | 1,025 | $245.93 | $252,078 |
From insiders' Form 4 filings with the SEC. Excludes awards, option exercises and shares withheld for tax. "Pre-set plan" means the filing marks the trade as made under a Rule 10b5-1 plan. See every insider trade since five years ago, on a price chart.
No trades in Tower Semiconductor LTD disclosed in the last 12 months; 4 earlier trades on record.
| Data | Last updated | Source |
|---|---|---|
| Share price | Exchange closing prices | |
| News and updates | Company releases and SEC 8-K filings | |
| Analyst estimates | Aggregated analyst estimates | |
| Valuation and scores | Our models, from the filed figures |
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