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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Tower Semiconductor's 10-Year RORE % for the quarter that ended in Mar. 2026 was 0.78%.
The industry rank for Tower Semiconductor's 10-Year RORE % or its related term are showing as below:
FRA:TOW's 10-Year RORE % is ranked worse than 59.38% of 608
companies
in the Semiconductors industry
Industry Median: 7.435
vs FRA:TOW: 0.78
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 10-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Tower Semiconductor 10-Year RORE % Related Terms
Tower Semiconductor 10-Year RORE % Historical Data
* Premium members only.
The historical data trend for Tower Semiconductor's 10-Year RORE % 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: 10-Year RORE % Comparison
For the Semiconductors subindustry, Tower Semiconductor's 10-Year RORE %, along with its competitors' market caps and 10-Year RORE % 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 10-Year RORE % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Tower Semiconductor's 10-Year RORE % distribution charts can be found below:
* The bar in red indicates where Tower Semiconductor's 10-Year RORE % 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.
In the calculation of 10-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 10-year before.
Tower Semiconductor (FRA:TOW) has a 10-Year RORE % of 0.78 as of Mar. 2026. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Tower Semiconductor and its competitors. According to the industry distribution chart, Tower Semiconductor ranks #361 out of 608 companies in the Semiconductors industry, placing it in the top 59.4%.
Is Tower Semiconductor's 10-Year RORE % too high?
Tower Semiconductor's current 10-Year RORE % is 0.78. The Semiconductors industry median 10-Year RORE % is 7.44. Tower Semiconductor's value of 0.78 is 89.5% below this industry median. Based on the distribution chart, Tower Semiconductor ranks #361 out of 608 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 10-Year RORE % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Tower Semiconductor ranks #361 out of 608 companies for 10-Year RORE %. This places Tower Semiconductor in the lower half of its industry. The industry median 10-Year RORE % is 7.44. Tower Semiconductor's value of 0.78 is 89.5% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 10-Year RORE % for a Semiconductors company?
The median 10-Year RORE % among Semiconductors companies is 7.44, based on 608 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tower Semiconductor's current 10-Year RORE % of 0.78 is 89.5% below 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 10-Year RORE % mean?
A high 10-Year RORE % can signal that a stock is expensive relative to its fundamentals. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Tower Semiconductor and its competitors. For the Semiconductors industry, the median 10-Year RORE % is 7.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tower Semiconductor's current 10-Year RORE % is 0.78. 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 €49.10, compared to a current price of €197.00 — trading 301.2% above its estimated fair value. The current 10-Year RORE % is 0.78 and 89.5% below the Semiconductors industry median of 7.44. 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 10-Year RORE % calculated?
10-Year RORE % is calculated from a company's financial statements. For Tower Semiconductor (FRA:TOW), the current 10-Year RORE % is 0.78 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 €197.00 is trading 301.2% above its estimated GF Value™ of €49.10.
GuruFocus considers Tower Semiconductor to be Significantly Overvalued.
Key valuation signals for FRA:TOW:
10-Year RORE %: 0.78
GF Value™: €49.10 vs. price of €197.00 (301.2% above fair value)
Industry Position: 89.5% below the Semiconductors median (#361 of 608)
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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