TSEM (Tower Semiconductor) Profitability Rank: 8 (As of Jun. 2026) — 33% Above Median

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TSEM Tower Semiconductor Ltd TSEM
71 GF Score
Price $252.48
GF Value $66.24
Valuation Significantly Overvalued
! 1 Warning Sign
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What is Tower Semiconductor Profitability Rank?

Tower Semiconductor TSEM +12.28% 71 Profitability Rank is 8 as of Jun. 2026, which is 33% above its 10-year median of 6.00. GuruFocus rates TSEM with a GF Score™ of 71/100 and a GF Value™ of $66.24 (Significantly Overvalued). The stock has 1 warning sign investors should review.

Tower Semiconductor has the Profitability Rank of 8. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Tower Semiconductor's Operating Margin % for the quarter that ended in Jun. 2026 was 19.62%. As of today, Tower Semiconductor's Piotroski F-Score is 7.


Tower Semiconductor Profitability Rank Related Terms


TSEM vs NVDA, AVGO, MU: Profitability Rank Comparison

For the Semiconductors subindustry, Tower Semiconductor's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Tower Semiconductor Profitability Rank vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Tower Semiconductor's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Tower Semiconductor's Profitability Rank falls into.


TSEM
71GF Score
Tower Semiconductor Ltd TSEM
Profitability Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Tower Semiconductor Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Tower Semiconductor has the Profitability Rank of 8. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Tower Semiconductor's Operating Margin % for the quarter that ended in Jun. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2026 ) / Revenue (Q: Jun. 2026 )
=90.29 / 460.079
=19.62 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Tower Semiconductor has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

Tower Semiconductor Ltd operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank

Frequently Asked Questions Learn more about Profitability Rank →
What does a Profitability Rank of 8 mean?
Tower Semiconductor (TSEM) has a Profitability Rank of 8 as of Jun. 2026. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Tower Semiconductor and its competitors. This is 33% above median its historical median of 6.00. Over the past decade, Tower Semiconductor's Profitability Rank has ranged from 3.00 to 8.00.
Is Tower Semiconductor's Profitability Rank too high?
Tower Semiconductor's current Profitability Rank of 8 is 33% above median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 8.00. Overall, Tower Semiconductor has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tower Semiconductor's Profitability Rank compare to NVDA and AVGO?
Tower Semiconductor's Profitability Rank of 8 can be compared against companies in the Semiconductors industry. Historically, Tower Semiconductor's own Profitability Rank has ranged from 3.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for a Semiconductors company?
A good Profitability Rank depends on the Semiconductors industry context. However, Profitability Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Tower Semiconductor and its competitors. Tower Semiconductor's current Profitability Rank is 8, which is 33% above median its own 10-year median of 6.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tower Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Tower Semiconductor (TSEM) is currently considered Significantly Overvalued. The stock's GF Value™ is $66.24, compared to a current price of $252.48 — trading 281.2% above its estimated fair value. The current Profitability Rank is 8, which is 33% above median its 10-year median of 6.00. Tower Semiconductor's overall GF Score™ is 71/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For Tower Semiconductor (TSEM), the current Profitability Rank is 8 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Tower Semiconductor (TSEM) Overvalued in 2026?

Based on GuruFocus' analysis, Tower Semiconductor stock appears to be overvalued. The current stock price of $252.48 is trading 281.2% above its estimated GF Value™ of $66.24. GuruFocus considers Tower Semiconductor to be Significantly Overvalued.

Key valuation signals for TSEM:

  • Profitability Rank: 8 (33% above median its 10-year median of 6.00)
  • GF Value™: $66.24 vs. price of $252.48 (281.2% above fair value)
  • GF Score™: 71/100 with 1 warning sign

No single metric tells the full story. See the TSEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tower Semiconductor Business Description

Address 20 Shaul Amor Avenue, P.O. Box 619, Ramat Gavriel Industrial Park, Migdal Haemek, ISR, 2310502
Tower Semiconductor Ltd is a pure-play specialty foundry that manufactures semiconductors. 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.
71GF Score

Get the complete analysis for TSEM

Profitability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$252.48
Price
$66.24
GF Value