TAIWAN SEMICONDUCTOR-SP ADR (TSM)
US8740391003 - ADR
Overall TSM gets a fundamental rating of 5 out of 10. We evaluated TSM against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. TSM scores excellent on profitability, but there are some minor concerns on its financial health. TSM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past 5 years TSM has always been profitable.
Each year in the past 5 years TSM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.81%, TSM belongs to the top of the industry, outperforming 85.85% of the companies in the same industry.
The Return On Equity of TSM (23.57%) is better than 85.85% of its industry peers.
The Return On Invested Capital of TSM (17.20%) is better than 90.57% of its industry peers.
TSM had an Average Return On Invested Capital over the past 3 years of 20.00%. This is significantly above the industry average of 10.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.81% | ||
| ROE | 23.57% | ||
| ROIC | 17.2% |
ROA(3y)17.21%
ROA(5y)17.13%
ROE(3y)28.75%
ROE(5y)27.11%
ROIC(3y)20%
ROIC(5y)20.06%
1.3 Margins
TSM has a Profit Margin of 38.16%. This is amongst the best in the industry. TSM outperforms 97.17% of its industry peers.
In the last couple of years the Profit Margin of TSM has grown nicely.
The Operating Margin of TSM (41.82%) is better than 98.11% of its industry peers.
In the last couple of years the Operating Margin of TSM has grown nicely.
Looking at the Gross Margin, with a value of 53.57%, TSM is in the better half of the industry, outperforming 68.87% of the companies in the same industry.
TSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.82% | ||
| PM (TTM) | 38.16% | ||
| GM | 53.57% |
OM growth 3Y0.24%
OM growth 5Y2.69%
PM growth 3Y0.1%
PM growth 5Y2.64%
GM growth 3Y0.78%
GM growth 5Y2.4%
2. Health
2.1 Basic Checks
TSM has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for TSM remains at a similar level compared to 5 years ago.
TSM has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of TSM is 2.11, which is a good value as it means it would take TSM, 2.11 years of fcf income to pay off all of its debts.
TSM has a better Debt to FCF ratio (2.11) than 68.87% of its industry peers.
TSM has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.26, TSM perfoms like the industry average, outperforming 43.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.39 indicates that TSM has no problem at all paying its short term obligations.
TSM's Current ratio of 2.39 is on the low side compared to the rest of the industry. TSM is outperformed by 64.15% of its industry peers.
A Quick Ratio of 2.13 indicates that TSM has no problem at all paying its short term obligations.
The Quick ratio of TSM (2.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.13 |
3. Growth
3.1 Past
The earnings per share for TSM have decreased strongly by -16.01% in the last year.
TSM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.00% yearly.
The Revenue has decreased by -1.56% in the past year.
The Revenue has been growing by 15.95% on average over the past years. This is quite good.
EPS 1Y (TTM)-16.01%
EPS 3Y17.43%
EPS 5Y19%
EPS growth Q2Q9.02%
Revenue 1Y (TTM)-1.56%
Revenue growth 3Y17.3%
Revenue growth 5Y15.95%
Revenue growth Q2Q16.52%
3.2 Future
The Earnings Per Share is expected to grow by 14.48% on average over the next years. This is quite good.
TSM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.31% yearly.
EPS Next Y21.29%
EPS Next 2Y22.57%
EPS Next 3Y20.04%
EPS Next 5Y14.48%
Revenue Next Year23.84%
Revenue Next 2Y21.59%
Revenue Next 3Y14.29%
Revenue Next 5Y13.31%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
TSM has an outstanding profitability rating, which may justify a higher PE ratio.
TSM's earnings are expected to grow with 20.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.57%
EPS Next 3Y20.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.68%, TSM has a reasonable but not impressive dividend return.
TSM's Dividend Yield is rather good when compared to the industry average which is at 2.04. TSM pays more dividend than 87.74% of the companies in the same industry.
TSM's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
On average, the dividend of TSM grows each year by 7.06%, which is quite nice.
TSM has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.06%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TSM pays out 34.80% of its income as dividend. This is a sustainable payout ratio.
TSM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.8%
EPS Next 2Y22.57%
EPS Next 3Y20.04%
TAIWAN SEMICONDUCTOR-SP ADR
NYSE:TSM (5/9/2024, 8:42:10 AM)
142.07
-1.53 (-1.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap736.92B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.81% | ||
| ROE | 23.57% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 41.82% | ||
| PM (TTM) | 38.16% | ||
| GM | 53.57% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.13 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-16.01%
EPS 3Y17.43%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.56%
Revenue growth 3Y17.3%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y