Tower Semiconductor (FRA:TOW) ROCE %: 8.12% (As of Mar. 2026)


FRA:TOW Tower Semiconductor Ltd FRA:TOW
70 GF Score
Price €238.00
GF Value €50.85
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Tower Semiconductor ROCE %?

Tower Semiconductor FRA:TOW -3.64% 70 ROCE % is 8.12% as of Mar. 2026. GuruFocus rates FRA:TOW with a GF Score™ of 70/100 and a GF Value™ of €50.85 (Significantly Overvalued). The stock has 5 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Tower Semiconductor's annualized ROCE % for the quarter that ended in Mar. 2026 was 8.12%.

Tower Semiconductor  (FRA:TOW) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Tower Semiconductor ROCE % Related Terms

Tower Semiconductor ROCE % Historical Data

* Premium members only.

The historical data trend for Tower Semiconductor's ROCE % can be seen below:

* 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.

Tower Semiconductor ROCE % Chart

Tower Semiconductor Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.91 14.91 24.22 8.31 7.89

Tower Semiconductor Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.58 5.33 6.78 16.00 8.12
FRA:TOW
70GF Score
Tower Semiconductor Ltd FRA:TOW
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Tower Semiconductor ROCE % Calculation

Tower Semiconductor's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=208.411/( ( (2941.863 - 272.236) + (2837.236 - 225.24) )/ 2 )
=208.411/( (2669.627+2611.996)/ 2 )
=208.411/2640.8115
=7.89 %

Tower Semiconductor's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=223.396/( ( (2837.236 - 225.24) + (3201.036 - 311.714) )/ 2 )
=223.396/( ( 2611.996 + 2889.322 )/ 2 )
=223.396/2750.659
=8.12 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 8.12% mean?
Tower Semiconductor (FRA:TOW) has a ROCE % of 8.12% as of Mar. 2026.
Is Tower Semiconductor's ROCE % too high?
Tower Semiconductor's current ROCE % is 8.12%. The Semiconductors industry median ROCE % is 4.81. Tower Semiconductor's value of 8.12% is 69% above this industry median. Overall, Tower Semiconductor has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tower Semiconductor's ROCE % compare to NVDA and AVGO?
Tower Semiconductor's ROCE % of 8.12% can be compared against companies in the Semiconductors industry. The industry median ROCE % is 4.81. Tower Semiconductor's value of 8.12% is 69% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Semiconductors company?
The median ROCE % among Semiconductors companies is 4.81, based on 1,018 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tower Semiconductor's current ROCE % of 8.12% is 69% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median ROCE % is 4.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tower Semiconductor's current ROCE % is 8.12%. 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 (FRA:TOW) is currently considered Significantly Overvalued. The stock's GF Value™ is €50.85, compared to a current price of €238.00 — trading 368% above its estimated fair value. The current ROCE % is 8.12% and 69% above the Semiconductors industry median of 4.81. Tower Semiconductor's overall GF Score™ is 70/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Tower Semiconductor (FRA:TOW), the current ROCE % is 8.12% as of Mar. 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 (FRA:TOW) Overvalued in 2026?

Based on GuruFocus' analysis, Tower Semiconductor stock appears to be overvalued. The current stock price of €238.00 is trading 368% above its estimated GF Value™ of €50.85. GuruFocus considers Tower Semiconductor to be Significantly Overvalued.

Key valuation signals for FRA:TOW:

  • ROCE %: 8.12%
  • GF Value™: €50.85 vs. price of €238.00 (368% above fair value)
  • GF Score™: 70/100 with 5 warning signs
  • Industry Position: 69% above the Semiconductors median

No single metric tells the full story. See the FRA:TOW 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.
70GF Score

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

€238.00
Price
€50.85
GF Value