Recent News
Dec 3, 2025 — Tower confirmed participation in the Barclays 23rd Annual Global Technology Conference. Dec 9, 2025 — Tower announced attendance at the Nomura CES Technology Conference in early January 2026. Dec 29, 2025 — Tower scheduled management meetings at the Needham Growth Conference in January 2026. Jan 29, 2026 — Tower announced participation in the Susquehanna 15th Annual Technology Conference in February 2026.
Technical Analysis
ADX / DI+/DI-: ADX at 17.15 indicates no established trend; DI+ registered a dip-and-reversal (DI+ = 23.55) which reads as a bullish directional attempt, while DI- increasing (DI- = 20.26) signals concurrent downside pressure. Together these readings imply directional tension rather than a clear trend, supporting a near-term consolidation bias despite fundamental momentum.
MACD: MACD sits at 3.97 below its signal line of 4.29, and the MACD trend shows a peak-and-reversal; that configuration denotes weakening bullish momentum and favors short-term retracement risk relative to recent highs.
MRO: MRO at 25.8 (peak-and-reversal) registers positive and signals the price sits above the model target, suggesting potential downward pressure as the indicator resolves.
RSI: RSI 60.46 with a decreasing trend shows momentum cooling from a modestly bullish level rather than an overbought extreme, consistent with consolidation or a shallow pullback while longer-term averages remain supportive.
Price vs Averages & Volumes: Last close $133.58 sits slightly below the 20-day average ($134.49) while remaining above the 50-day ($125.05) and 200-day ($75.66) averages; the 12-day EMA shows a peak-and-reversal. Average daily volume running above the 10-day mean and well above the 200-day mean indicates elevated trading interest. High short-term beta (42-day 2.07) points to amplified swings.
Support/Resistance Context: Bollinger bands keep price within the 1–2σ band range and the super-trend lower marker at $123.87 functions as a technical support reference; price-target mean among analysts sits near $155.66, defining a nearer-term upside reference point for momentum to reassert.
Fundamental Analysis
Revenue & Profitability: Total revenue $395,667,000 with year-over-year revenue growth of 15.26% and quarter-over-quarter growth of 63.62%. Gross margin stands at 23.516% and operating (EBIT) margin at 12.783%, a QoQ improvement of 19.30% but a YoY decline of 15.06%. Operating leverage and sequential margin expansion align with the company’s reported capacity investments.
Earnings & Cash Flow: Reported EPS $0.78 versus an estimate of $0.68, an EPS surprise of 14.71%. Operating cash flow $139,423,000 and free cash flow $35,933,000 produce a free cash flow yield of 0.46%, below the industry peer mean of roughly 0.95%. Cash on hand $272,742,000 and cash plus short-term investments $1,223,302,000 support near-term funding for expansion.
Balance Sheet & Leverage: Current ratio 6.61 and quick ratio 5.54 indicate ample liquidity; debt to assets 5.05% and debt to EBITDA ~1.29 reflect structurally low leverage versus the industry peer mean debt-to-assets of ~20.01%.
Valuation Multiples: Trailing PE ~126.66 and forward PE ~97.19 sit above the industry peer means (trailing peer mean ~85.66; forward peer mean ~84.96), while P/B at 2.74 trades below the industry peer mean of ~4.81. Enterprise multiple near 53.15 and EV/revenue ~17.06 underpin the label below.
Operational Efficiency & Returns: Asset turnover 0.1226 and return on equity ~1.885% remain modest; return on invested capital at 26.976% appears elevated but shows notable YoY volatility. Days of inventory ~89.59 and cash conversion cycle ~97.17 days align with capital-intensive manufacturing cadence.
Valuation Statement: The current valuation as determined by WMDST: over-valued. Key drivers include premium multiples relative to earnings, modest free cash flow yield, and substantial near-term capex commitments alongside strong liquidity and improving top-line momentum.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2026-02-11 |
| NEXT REPORT DATE: | 2026-05-13 |
| CASH FLOW | Begin Period Cash Flow | $ 265.3 M |
| Operating Cash Flow | $ 139.4 M | |
| Capital Expenditures | $ -103.49 M | |
| Change In Working Capital | $ 9.6 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 7.4 M | |
| End Period Cash Flow | $ 272.7 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 395.7 M | |
| Forward Revenue | $ 241.5 M | |
| COSTS | ||
| Cost Of Revenue | $ 302.6 M | |
| Depreciation | $ 76.5 M | |
| Depreciation and Amortization | $ 76.5 M | |
| Research and Development | $ 22.1 M | |
| Total Operating Expenses | $ 345.1 M | |
| PROFITABILITY | ||
| Gross Profit | $ 93.0 M | |
| EBITDA | $ 127.0 M | |
| EBIT | $ 50.6 M | |
| Operating Income | $ 50.6 M | |
| Interest Income | $ 10.5 M | |
| Interest Expense | — | |
| Net Interest Income | $ 10.5 M | |
| Income Before Tax | $ 61.1 M | |
| Tax Provision | $ 7.6 M | |
| Tax Rate | 12.486 % | |
| Net Income | $ 53.6 M | |
| Net Income From Continuing Operations | $ 53.4 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.68 | |
| EPS Actual | $ 0.78 | |
| EPS Difference | $ 0.10 | |
| EPS Surprise | 14.706 % | |
| Forward EPS | $ 1.17 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.3 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 2.8 B | |
| Total Current Assets | $ 1.8 B | |
| Cash and Short-Term Investments | $ 1.2 B | |
| Cash | $ 272.7 M | |
| Net Receivables | $ 213.0 M | |
| Inventory | $ 286.7 M | |
| Long-Term Investments | $ 32.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 131.9 M | |
| Short-Term Debt | $ 33.2 M | |
| Total Current Liabilities | $ 269.2 M | |
| Net Debt | — | |
| Total Debt | $ 164.1 M | |
| Total Liabilities | $ 420.0 M | |
| EQUITY | ||
| Total Equity | $ 2.8 B | |
| Retained Earnings | — | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 25.38 | |
| Shares Outstanding | 112.124 M | |
| Revenue Per-Share | $ 3.53 | |
| VALUATION | Market Capitalization | $ 7.8 B |
| Enterprise Value | $ 6.8 B | |
| Enterprise Multiple | 53.146 | |
| Enterprise Multiple QoQ | 40.221 % | |
| Enterprise Multiple YoY | 49.426 % | |
| Enterprise Multiple IPRWA | high: 293.321 mean: 66.165 TSEM: 53.146 median: 51.945 low: -162.64 |
|
| EV/R | 17.064 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.143 | |
| Asset To Liability | 7.744 | |
| Debt To Capital | 0.055 | |
| Debt To Assets | 0.05 | |
| Debt To Assets QoQ | -8.223 % | |
| Debt To Assets YoY | 150.248 % | |
| Debt To Assets IPRWA | high: 0.433 mean: 0.2 median: 0.183 TSEM: 0.05 low: 0.003 |
|
| Debt To Equity | 0.058 | |
| Debt To Equity QoQ | -8.722 % | |
| Debt To Equity YoY | 144.945 % | |
| Debt To Equity IPRWA | high: 1.097 mean: 0.4 median: 0.255 TSEM: 0.058 low: -0.22 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.745 | |
| Price To Book QoQ | 42.444 % | |
| Price To Book YoY | 31.948 % | |
| Price To Book IPRWA | high: 12.251 mean: 4.808 median: 3.368 TSEM: 2.745 low: -2.43 |
|
| Price To Earnings (P/E) | 126.657 | |
| Price To Earnings QoQ | 19.409 % | |
| Price To Earnings YoY | 52.27 % | |
| Price To Earnings IPRWA | high: 502.775 TSEM: 126.657 mean: 85.66 median: 42.881 low: -318.395 |
|
| PE/G Ratio | 3.709 | |
| Price To Sales (P/S) | 19.741 | |
| Price To Sales QoQ | 36.74 % | |
| Price To Sales YoY | 34.184 % | |
| Price To Sales IPRWA | high: 88.578 mean: 23.202 TSEM: 19.741 median: 15.777 low: 0.296 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 97.186 | |
| Forward PE/G | 2.846 | |
| Forward P/S | 64.857 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 4.236 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.123 | |
| Asset Turnover Ratio QoQ | 3.97 % | |
| Asset Turnover Ratio YoY | -0.39 % | |
| Asset Turnover Ratio IPRWA | high: 0.269 mean: 0.153 median: 0.133 TSEM: 0.123 low: 0.003 |
|
| Receivables Turnover | 1.847 | |
| Receivables Turnover Ratio QoQ | 7.954 % | |
| Receivables Turnover Ratio YoY | -10.008 % | |
| Receivables Turnover Ratio IPRWA | high: 5.079 mean: 2.412 TSEM: 1.847 median: 1.788 low: 0.657 |
|
| Inventory Turnover | 1.055 | |
| Inventory Turnover Ratio QoQ | 1.708 % | |
| Inventory Turnover Ratio YoY | 4.322 % | |
| Inventory Turnover Ratio IPRWA | high: 1.626 TSEM: 1.055 mean: 0.731 median: 0.724 low: 0.139 |
|
| Days Sales Outstanding (DSO) | 49.391 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 97.173 | |
| Cash Conversion Cycle Days QoQ | -5.435 % | |
| Cash Conversion Cycle Days YoY | 1.884 % | |
| Cash Conversion Cycle Days IPRWA | high: 466.532 median: 132.081 mean: 124.184 TSEM: 97.173 low: -5.982 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.262 | |
| CapEx To Revenue | -0.262 | |
| CapEx To Depreciation | -1.354 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 3.0 B | |
| Net Invested Capital | $ 164.1 M | |
| Invested Capital | $ 164.1 M | |
| Net Tangible Assets | $ 2.8 B | |
| Net Working Capital | $ 1.5 B | |
| LIQUIDITY | ||
| Cash Ratio | 4.543 | |
| Current Ratio | 6.61 | |
| Current Ratio QoQ | 0.576 % | |
| Current Ratio YoY | 13.573 % | |
| Current Ratio IPRWA | high: 16.531 TSEM: 6.61 mean: 3.169 median: 2.73 low: 0.406 |
|
| Quick Ratio | 5.545 | |
| Quick Ratio QoQ | 0.759 % | |
| Quick Ratio YoY | 13.275 % | |
| Quick Ratio IPRWA | high: 11.013 TSEM: 5.545 mean: 2.424 median: 2.091 low: 0.573 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 1.292 | |
| Cost Of Debt | 2.681 % | |
| Interest Coverage Ratio | 9.706 | |
| Interest Coverage Ratio QoQ | 26.878 % | |
| Interest Coverage Ratio YoY | -9.293 % | |
| Interest Coverage Ratio IPRWA | high: 236.673 mean: 21.844 median: 10.787 TSEM: 9.706 low: -297.123 |
|
| Operating Cash Flow Ratio | 0.478 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 41.806 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.536 % | |
| Revenue Growth | 6.345 % | |
| Revenue Growth QoQ | 63.615 % | |
| Revenue Growth YoY | 15.259 % | |
| Revenue Growth IPRWA | high: 55.53 % mean: 12.786 % median: 9.101 % TSEM: 6.345 % low: -25.075 % |
|
| Earnings Growth | 34.146 % | |
| Earnings Growth QoQ | -484.138 % | |
| Earnings Growth YoY | 201.616 % | |
| Earnings Growth IPRWA | high: 166.667 % TSEM: 34.146 % mean: 21.772 % median: 8.303 % low: -318.182 % |
|
| MARGINS | ||
| Gross Margin | 23.516 % | |
| Gross Margin QoQ | 9.331 % | |
| Gross Margin YoY | -6.374 % | |
| Gross Margin IPRWA | high: 93.827 % median: 52.477 % mean: 49.016 % TSEM: 23.516 % low: -39.177 % |
|
| EBIT Margin | 12.783 % | |
| EBIT Margin QoQ | 19.3 % | |
| EBIT Margin YoY | -15.063 % | |
| EBIT Margin IPRWA | high: 78.707 % median: 26.477 % mean: 23.66 % TSEM: 12.783 % low: -193.1 % |
|
| Return On Sales (ROS) | 12.783 % | |
| Return On Sales QoQ | 19.3 % | |
| Return On Sales YoY | -15.063 % | |
| Return On Sales IPRWA | high: 57.635 % mean: 22.578 % TSEM: 12.783 % median: 12.079 % low: -193.544 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 35.9 M | |
| Free Cash Flow Yield | 0.46 % | |
| Free Cash Flow Yield QoQ | 107.207 % | |
| Free Cash Flow Yield YoY | -967.925 % | |
| Free Cash Flow Yield IPRWA | high: 2.53 % mean: 0.952 % median: 0.946 % TSEM: 0.46 % low: -16.343 % |
|
| Free Cash Growth | 201.527 % | |
| Free Cash Growth QoQ | -219.857 % | |
| Free Cash Growth YoY | -128.265 % | |
| Free Cash Growth IPRWA | high: 250.99 % TSEM: 201.527 % median: 8.778 % mean: 5.308 % low: -123.697 % |
|
| Free Cash To Net Income | 0.67 | |
| Cash Flow Margin | 32.525 % | |
| Cash Flow To Earnings | 2.399 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.662 % | |
| Return On Assets QoQ | 12.678 % | |
| Return On Assets YoY | -8.43 % | |
| Return On Assets IPRWA | high: 7.396 % TSEM: 1.662 % median: 0.578 % mean: 0.208 % low: -20.562 % |
|
| Return On Capital Employed (ROCE) | 1.695 % | |
| Return On Equity (ROE) | 0.019 | |
| Return On Equity QoQ | 12.874 % | |
| Return On Equity YoY | -9.592 % | |
| Return On Equity IPRWA | high: 0.185 TSEM: 0.019 median: 0.008 mean: -0.013 low: -0.336 |
|
| DuPont ROE | 1.905 % | |
| Return On Invested Capital (ROIC) | 26.976 % | |
| Return On Invested Capital QoQ | 41.8 % | |
| Return On Invested Capital YoY | -724.011 % | |
| Return On Invested Capital IPRWA | TSEM: 26.976 % high: 20.288 % mean: 3.963 % median: 3.769 % low: -12.969 % |
|