Is TOWER SEMICONDUCTOR LTD (TSEM) Halal?

NASDAQ Technology Israel $19.3B
✓ HALAL
Confidence: 83/100
TOWER SEMICONDUCTOR LTD (TSEM) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 1.5% against the AAOIFI threshold of 30%, TOWER SEMICONDUCTOR LTD comfortably passes the key financial ratio tests. The company operates in the Technology sector (Semiconductors), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 1.5%
/ 30%
9.8%
/ 30%
1.9%
/ 30%
N/A ✓ HALAL
DJIM 1.5%
/ 33%
9.8%
/ 33%
1.9%
/ 33%
N/A ✓ HALAL
MSCI 5.9%
/ 33%
39.5%
/ 33%
7.8%
/ 33%
N/A ✗ NOT HALAL
S&P 1.5%
/ 33%
9.8%
/ 33%
1.9%
/ 33%
N/A ✓ HALAL
FTSE 5.9%
/ 33%
39.5%
/ 33%
7.8%
/ 50%
N/A ✗ NOT HALAL

Financial Highlights

P/E Ratio
88.6
Forward: 35.9
EPS
$1.94
P/B Ratio
6.6
EV/EBITDA
36.9
EV: $18.3B
Beta
0.9
Average volatility
Current Ratio
6.5

Profitability

Gross Margin 23.2%
Operating Margin 16.1%
Net Margin 14.1%
Return on Equity (ROE) 7.9%
Return on Assets (ROA) 3.8%

Cash Flow & Balance Sheet

Operating Cash Flow$449M
Free Cash Flow$13M
Total Debt$181M
Debt-to-Equity5.6
Current Ratio6.5
Total Assets$3.1B

Price & Trading

Last Close$174.68
50-Day MA$135.50
200-Day MA$90.30
Avg Volume2.2M
Beta0.9
52-Week Range
$28.64
$195.36

About TOWER SEMICONDUCTOR LTD (TSEM)

CEO
Mr. Russell C. Ellwanger
Sector
Technology
Industry
Semiconductors
Country
Israel
Exchange
NASDAQ
Market Cap
$19.3B
Currency
USD

Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms for integrated circuits in the United States, Japan, rest of Asia, and Europe. The company provides customizable process technologies, including SiGe, SiPho, mixed signal CMOS, RF CMOS, CMOS image sensor, non-imaging sensors, wafers, and integrated power management. It also offers a design enablement platform for a design cycle, as well as transfer optimization and development process services to integrated device manufacturers and fabless companies. The company serves consumer applications, personal computers, communications, handsets and smartphones, automotive, industrial, aerospace, and medical devices. Tower Semiconductor Ltd. was incorporated in 1993 and is headquartered in Migdal Haemek, Israel

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Frequently Asked Questions

Is TOWER SEMICONDUCTOR LTD (TSEM) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), TOWER SEMICONDUCTOR LTD is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is TOWER SEMICONDUCTOR LTD's debt ratio?

TOWER SEMICONDUCTOR LTD's debt ratio is 1.5% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 5.9%.

What are TOWER SEMICONDUCTOR LTD's key financial metrics?

TOWER SEMICONDUCTOR LTD has a market capitalization of $19.3B, trailing P/E ratio of 88.6. The company maintains a gross margin of 23.2% and a net margin of 14.1%. Return on equity stands at 7.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.