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3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Tower Semiconductor's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -15.02%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Tower Semiconductor's 3-Year ROIIC % or its related term are showing as below:
FRA:TOW's 3-Year ROIIC % is ranked worse than 66.47% of 996
companies
in the Semiconductors industry
Industry Median: -0.145
vs FRA:TOW: -15.02
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Tower Semiconductor 3-Year ROIIC % Related Terms
Tower Semiconductor 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Tower Semiconductor's 3-Year ROIIC % 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.
FRA:TOW vs NVDA, AVGO, MU: 3-Year ROIIC % Comparison
For the Semiconductors subindustry, Tower Semiconductor's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Tower Semiconductor's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Tower Semiconductor's 3-Year ROIIC % falls into.
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Tower Semiconductor (FRA:TOW) has a 3-Year ROIIC % of -15.02 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Tower Semiconductor and its competitors. According to the industry distribution chart, Tower Semiconductor ranks #662 out of 996 companies in the Semiconductors industry, placing it in the top 66.5%.
Is Tower Semiconductor's 3-Year ROIIC % too high?
Tower Semiconductor's current 3-Year ROIIC % is -15.02. Based on the distribution chart, Tower Semiconductor ranks #662 out of 996 companies in the Semiconductors industry, which is below the industry midpoint. 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 3-Year ROIIC % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Tower Semiconductor ranks #662 out of 996 companies for 3-Year ROIIC %. This places Tower Semiconductor in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Semiconductors company?
A good 3-Year ROIIC % depends on the Semiconductors industry context. However, 3-Year ROIIC % 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Tower Semiconductor and its competitors. Tower Semiconductor's current 3-Year ROIIC % is -15.02. 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 €50.25, compared to a current price of €211.00 — trading 319.9% above its estimated fair value. The current 3-Year ROIIC % is -15.02. Tower Semiconductor's overall GF Score™ is 70/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Tower Semiconductor (FRA:TOW), the current 3-Year ROIIC % is -15.02 as of Dec. 2025. 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 €211.00 is trading 319.9% above its estimated GF Value™ of €50.25.
GuruFocus considers Tower Semiconductor to be Significantly Overvalued.
Key valuation signals for FRA:TOW:
3-Year ROIIC %: -15.02
GF Value™: €50.25 vs. price of €211.00 (319.9% above fair value)
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 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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3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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