Recent News
On March 25, 2026 the company announced plans to take full ownership of its 300mm Japan facility (Fab 7) to expand capacity. On April 27, 2026 Tower and Axiro Semiconductor announced availability of high-power, high-efficiency SiGe radar beamforming ICs built on Tower’s process technologies. On May 13, 2026 Tower disclosed signed silicon photonics customer contracts totaling $1.3 billion for 2027 revenue, including $290 million in prepayments for capacity reservation. On June 18, 2026 Tower and Marvell announced shipment of over five million coherent photonic integrated circuits for AI data center interconnects.
Technical Analysis
Directional indicators show an emerging trend: ADX at 21.39 signals the trend has begun to form, with DI+ at 31.63 increasing, which reads as bullish directional momentum; DI- at 23.03 experienced a peak-and-reverse, which also registers as bullish under directional rules.
MACD sits at 11.87 above its signal line of 9.47 and the MACD trend increases, a bullish momentum confirmation that aligns with recent upside in price and shorter-term moving averages.
MRO at 31.54 (increasing) indicates the current price sits above the model target and suggests a material potential for mean reversion; that pressure increases the probability of short-term pullbacks despite the bullish momentum.
RSI at 59.45 and rising signals constructive buying momentum without overbought extremes; combined with price trading above the 12- and 26-day EMAs and well above the 50- and 200-day averages, the shorter-term bias favors continuation while leaving room for volatility.
Price near $316.85 trades above the 20-day average ($263.60) and the 200-day average ($144.52), with a 42-day beta of 3.19 and elevated volume versus recent averages, which implies higher-than-normal intraperiod volatility and larger swing amplitudes; Bollinger band breadth shows a wide band consistent with recent volatility.
Fundamental Analysis
Revenue totaled $413.63M for the period. YoY revenue declined by 19.45%, while quarter-over-quarter revenue change registers as -153.63% versus the prior quarter figure, indicating volatile top-line comparisons across reporting periods.
Operating income (EBIT) reached $64.565M and operating margin stands at 15.61%. That margin sits below the industry peer mean of 32.69% and below the industry peer median of 32.662%, signaling lower operating profitability relative to peers despite sequential improvement YoY (EBIT margin rose 69.94% year-over-year but fell 43.07% quarter-over-quarter).
Net income equaled $65.032M and EPS came in at $0.65 versus an estimate of $0.56, an EPS surprise of +16.07% (difference $0.09). Forward EPS of $1.4345 implies elevated forward expectations; forward P/E stands near 93.12x while trailing P/E sits at 277.93x, both reflecting a valuation premium relative to earnings power.
Liquidity and capital structure show strength: cash and short-term investments total $1,498.55M and cash ratio equals 415.84%; current ratio equals 563.03% and quick ratio equals 492.31%, indicating substantial near-term liquidity. Total debt to assets equals 4.21% and debt to equity equals 5.22%, reflecting low leverage and robust interest coverage (~12.39x).
Free cash flow reached $353.60M (free cash flow yield ~1.74%) with operating cash flow $509.97M and a cash-flow-to-earnings multiple of 5.44x, which points to cash conversion well in excess of reported net income. Return on invested capital equals 37.78%, while return on equity equals 2.18% and return on assets equals 1.85%, a profile that mixes high capital efficiency on invested capital with modest returns on equity and assets.
WMDST values the stock as over-valued; the premium implied by elevated P/E and P/S ratios (P/S ~49.28x, P/B ~6.82x) contrasts with strong liquidity and multi-year silicon photonics contract visibility, producing a valuation disconnect between cash strength and earnings-derived multiples.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-05-13 |
| NEXT REPORT DATE: | 2026-08-12 |
| CASH FLOW | Begin Period Cash Flow | $ 235.4 M |
| Operating Cash Flow | $ 510.0 M | |
| Capital Expenditures | $ -156.37 M | |
| Change In Working Capital | $ 71.3 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 7.9 M | |
| End Period Cash Flow | $ 243.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 413.6 M | |
| Forward Revenue | $ 257.4 M | |
| COSTS | ||
| Cost Of Revenue | $ 302.7 M | |
| Depreciation | $ 82.9 M | |
| Depreciation and Amortization | $ 82.9 M | |
| Research and Development | $ 23.5 M | |
| Total Operating Expenses | $ 349.1 M | |
| PROFITABILITY | ||
| Gross Profit | $ 111.0 M | |
| EBITDA | $ 147.5 M | |
| EBIT | $ 64.6 M | |
| Operating Income | $ 64.6 M | |
| Interest Income | $ 9.5 M | |
| Interest Expense | — | |
| Net Interest Income | $ 9.5 M | |
| Income Before Tax | $ 74.1 M | |
| Tax Provision | $ 6.5 M | |
| Tax Rate | 8.798 % | |
| Net Income | $ 65.0 M | |
| Net Income From Continuing Operations | $ 67.6 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.56 | |
| EPS Actual | $ 0.65 | |
| EPS Difference | $ 0.09 | |
| EPS Surprise | 16.071 % | |
| Forward EPS | $ 1.43 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.7 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 3.0 B | |
| Total Current Assets | $ 2.0 B | |
| Cash and Short-Term Investments | $ 1.5 B | |
| Cash | $ 243.3 M | |
| Net Receivables | $ 213.8 M | |
| Inventory | $ 254.8 M | |
| Long-Term Investments | $ 142.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 121.0 M | |
| Short-Term Debt | $ 25.1 M | |
| Total Current Liabilities | $ 360.4 M | |
| Net Debt | — | |
| Total Debt | $ 155.9 M | |
| Total Liabilities | $ 726.5 M | |
| EQUITY | ||
| Total Equity | $ 3.0 B | |
| Retained Earnings | — | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 26.49 | |
| Shares Outstanding | 112.825 M | |
| Revenue Per-Share | $ 3.67 | |
| VALUATION | Market Capitalization | $ 20.4 B |
| Enterprise Value | $ 19.0 B | |
| Enterprise Multiple | 129.089 | |
| Enterprise Multiple QoQ | 109.717 % | |
| Enterprise Multiple YoY | 317.926 % | |
| Enterprise Multiple IPRWA | high: 394.414 TSEM: 129.089 mean: 55.778 median: 22.264 low: -338.1 |
|
| EV/R | 46.03 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.238 | |
| Asset To Liability | 5.094 | |
| Debt To Capital | 0.05 | |
| Debt To Assets | 0.042 | |
| Debt To Assets QoQ | -13.369 % | |
| Debt To Assets YoY | -19.341 % | |
| Debt To Assets IPRWA | high: 0.579 mean: 0.153 median: 0.106 TSEM: 0.042 low: 0.002 |
|
| Debt To Equity | 0.052 | |
| Debt To Equity QoQ | -5.747 % | |
| Debt To Equity YoY | -12.763 % | |
| Debt To Equity IPRWA | high: 1.784 mean: 0.282 median: 0.149 TSEM: 0.052 low: 0.003 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 6.819 | |
| Price To Book QoQ | 50.724 % | |
| Price To Book YoY | 327.832 % | |
| Price To Book IPRWA | high: 18.637 TSEM: 6.819 median: 5.73 mean: 5.672 low: 0.296 |
|
| Price To Earnings (P/E) | 277.926 | |
| Price To Earnings QoQ | 84.699 % | |
| Price To Earnings YoY | 222.956 % | |
| Price To Earnings IPRWA | high: 539.07 TSEM: 277.926 mean: 83.834 median: 52.779 low: -151.151 |
|
| PE/G Ratio | -16.675 | |
| Price To Sales (P/S) | 49.276 | |
| Price To Sales QoQ | 64.228 % | |
| Price To Sales YoY | 307.804 % | |
| Price To Sales IPRWA | high: 218.897 TSEM: 49.276 mean: 25.274 median: 17.401 low: 0.418 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 93.117 | |
| Forward PE/G | -5.587 | |
| Forward P/S | 79.198 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 7.704 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.118 | |
| Asset Turnover Ratio QoQ | -12.038 % | |
| Asset Turnover Ratio YoY | 1.771 % | |
| Asset Turnover Ratio IPRWA | high: 0.255 median: 0.192 mean: 0.188 TSEM: 0.118 low: 0.001 |
|
| Receivables Turnover | 1.895 | |
| Receivables Turnover Ratio QoQ | -6.215 % | |
| Receivables Turnover Ratio YoY | 14.108 % | |
| Receivables Turnover Ratio IPRWA | high: 4.864 mean: 2.067 median: 2.039 TSEM: 1.895 low: 0.55 |
|
| Inventory Turnover | 1.183 | |
| Inventory Turnover Ratio QoQ | -0.334 % | |
| Inventory Turnover Ratio YoY | 12.987 % | |
| Inventory Turnover Ratio IPRWA | TSEM: 1.183 high: 1.165 median: 0.716 mean: 0.692 low: 0.221 |
|
| Days Sales Outstanding (DSO) | 48.162 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 85.886 | |
| Cash Conversion Cycle Days QoQ | -3.005 % | |
| Cash Conversion Cycle Days YoY | -13.973 % | |
| Cash Conversion Cycle Days IPRWA | high: 330.889 mean: 120.487 median: 119.741 TSEM: 85.886 low: -57.656 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.248 | |
| CapEx To Revenue | -0.378 | |
| CapEx To Depreciation | -1.886 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 3.1 B | |
| Net Invested Capital | $ 155.9 M | |
| Invested Capital | $ 155.9 M | |
| Net Tangible Assets | $ 3.0 B | |
| Net Working Capital | $ 1.7 B | |
| LIQUIDITY | ||
| Cash Ratio | 4.158 | |
| Current Ratio | 5.63 | |
| Current Ratio QoQ | -13.141 % | |
| Current Ratio YoY | -18.731 % | |
| Current Ratio IPRWA | high: 19.487 TSEM: 5.63 mean: 3.078 median: 2.897 low: 0.475 |
|
| Quick Ratio | 4.923 | |
| Quick Ratio QoQ | -10.622 % | |
| Quick Ratio YoY | -15.429 % | |
| Quick Ratio IPRWA | high: 11.279 TSEM: 4.923 mean: 2.384 median: 2.319 low: 0.421 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 1.057 | |
| Cost Of Debt | 2.995 % | |
| Interest Coverage Ratio | 12.39 | |
| Interest Coverage Ratio QoQ | -46.507 % | |
| Interest Coverage Ratio YoY | 96.258 % | |
| Interest Coverage Ratio IPRWA | high: 87.858 mean: 12.998 median: 12.548 TSEM: 12.39 low: -116.6 |
|
| Operating Cash Flow Ratio | 0.433 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 34.646 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 11.388 % | |
| Revenue Growth | -6.037 % | |
| Revenue Growth QoQ | -153.629 % | |
| Revenue Growth YoY | -19.453 % | |
| Revenue Growth IPRWA | high: 74.888 % mean: 28.278 % median: 2.766 % TSEM: -6.037 % low: -66.446 % |
|
| Earnings Growth | -16.667 % | |
| Earnings Growth QoQ | -139.856 % | |
| Earnings Growth YoY | -29.761 % | |
| Earnings Growth IPRWA | high: 155.23 % mean: 52.797 % median: 8.85 % TSEM: -16.667 % low: -188.889 % |
|
| MARGINS | ||
| Gross Margin | 26.824 % | |
| Gross Margin QoQ | 0.4 % | |
| Gross Margin YoY | 31.304 % | |
| Gross Margin IPRWA | high: 86.201 % median: 64.709 % mean: 58.233 % TSEM: 26.824 % low: -27.549 % |
|
| EBIT Margin | 15.609 % | |
| EBIT Margin QoQ | -43.072 % | |
| EBIT Margin YoY | 69.94 % | |
| EBIT Margin IPRWA | high: 67.863 % mean: 32.692 % median: 32.662 % TSEM: 15.609 % low: -653.587 % |
|
| Return On Sales (ROS) | 15.609 % | |
| Return On Sales QoQ | -2.989 % | |
| Return On Sales YoY | 69.94 % | |
| Return On Sales IPRWA | high: 67.624 % median: 33.067 % mean: 33.017 % TSEM: 15.609 % low: -653.587 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 353.6 M | |
| Free Cash Flow Yield | 1.735 % | |
| Free Cash Flow Yield QoQ | -389.167 % | |
| Free Cash Flow Yield YoY | -529.455 % | |
| Free Cash Flow Yield IPRWA | high: 9.541 % TSEM: 1.735 % median: 1.294 % mean: 0.17 % low: -12.802 % |
|
| Free Cash Growth | -545.88 % | |
| Free Cash Growth QoQ | 70.215 % | |
| Free Cash Growth YoY | -21.899 % | |
| Free Cash Growth IPRWA | high: 263.082 % median: 38.554 % mean: 25.312 % low: -265.342 % TSEM: -545.88 % |
|
| Free Cash To Net Income | 5.437 | |
| Cash Flow Margin | 37.731 % | |
| Cash Flow To Earnings | 2.4 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.852 % | |
| Return On Assets QoQ | -24.036 % | |
| Return On Assets YoY | 42.791 % | |
| Return On Assets IPRWA | high: 14.706 % median: 13.379 % mean: 8.486 % TSEM: 1.852 % low: -11.994 % |
|
| Return On Capital Employed (ROCE) | 1.933 % | |
| Return On Equity (ROE) | 0.022 | |
| Return On Equity QoQ | -20.729 % | |
| Return On Equity YoY | 47.226 % | |
| Return On Equity IPRWA | high: 0.27 median: 0.19 mean: 0.119 TSEM: 0.022 low: -0.468 |
|
| DuPont ROE | 2.201 % | |
| Return On Invested Capital (ROIC) | 37.781 % | |
| Return On Invested Capital QoQ | 882.601 % | |
| Return On Invested Capital YoY | 104.155 % | |
| Return On Invested Capital IPRWA | TSEM: 37.781 % high: 7.994 % median: 2.605 % mean: 2.441 % low: -7.726 % |
|