Tower Semiconductor Ltd.
TSEM Technology Semiconductors
Tower Semiconductor Ltd.’s revenue for fiscal 2025 (year ended December 2025) was $1.6 billion, up 9.05% from fiscal 2024. In the quarter to June 2026, revenue grew 23.7%, EPS grew 90.5%, free cash flow fell 180.7% and total debt fell 19.5%, each against the same quarter a year earlier.
Follow TSEM
Tower Semiconductor Ltd. (TSEM) Altman Z-score
Tower Semiconductor Ltd.'s Altman Z-score for fiscal 2025 is 20.45, in the safe zone (above 2.99).
Altman Z-score, annual
Embed this chart
Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 20.45 | 11.10 |
| FY2024 | 9.35 | 3.33 |
| FY2023 | 6.03 | 0.17 |
| FY2022 | 5.86 | 0.45 |
| FY2021 | 5.40 | 1.89 |
| FY2020 | 3.51 | (0.01) |
| FY2019 | 3.53 | 0.85 |
| FY2018 | 2.68 | (1.42) |
| FY2017 | 4.09 | 2.03 |
| FY2016 | 2.06 | 1.26 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.44 | — | 0.52 | |
| Retained earnings / total assets | 0.27 | — | 0.38 | |
| EBIT / total assets | 0.06 | — | 0.19 | |
| Market value of equity / total liabilities | 31.48 | — | 18.89 | |
| Sales / total assets | 0.47 | — | 0.47 | |
| Altman Z-score | Safe zone | 20.45 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 11.43 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| CRDO Credo Technology Group Holding Ltd. compare | 82.7× |
| SITM SiTime Corporation compare | 38.8× |
| LSCC Lattice Semiconductor Corporation compare | 37.1× |
| TSEM Tower Semiconductor Ltd. | 20.5× |
| MTSI MACOM Technology Solutions Holdings, Inc. compare | 8.1× |
| SWKS Skyworks Solutions, Inc. compare | 5.3× |
| ON ON Semiconductor Corporation compare | 4.6× |
| MCHP Microchip Technology Incorporated compare | 3.7× |
| GFS GlobalFoundries Inc. compare | 2.1× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets