Exploring the Growth Potential of TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM) as It Nears a Breakout.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but TAIWAN SEMICONDUCTOR-SP ADR has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

A Closer Look at Growth for TSM

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. TSM has received a 8 out of 10:

• The Earnings Per Share has grown by an impressive 52.72% over the past year.
• The Earnings Per Share has been growing by 27.73% on average over the past years. This is a very strong growth
• The Revenue has grown by 39.86% in the past year. This is a very strong growth!
• The Revenue has been growing by 22.02% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, TSM will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.80% on average per year.
• TSM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.37% yearly.

How do we evaluate the Health for TSM?

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of TSM, the assigned 5 reflects its health status:

• TSM has a debt to FCF ratio of 1.12. This is a very positive value and a sign of high solvency as it would only need 1.12 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.12, TSM is in the better half of the industry, outperforming 77.06% of the companies in the same industry.
• A Debt/Equity ratio of 0.21 indicates that TSM is not too dependend on debt financing.
• A Current Ratio of 2.39 indicates that TSM has no problem at all paying its short term obligations.
• A Quick Ratio of 2.18 indicates that TSM has no problem at all paying its short term obligations.

Profitability Insights: TSM

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, TSM has achieved a 9:

• The Return On Assets of TSM (18.36%) is better than 91.74% of its industry peers.
• With an excellent Return On Equity value of 28.69%, TSM belongs to the best of the industry, outperforming 90.83% of the companies in the same industry.
• TSM has a better Return On Invested Capital (21.81%) than 94.50% of its industry peers.
• TSM had an Average Return On Invested Capital over the past 3 years of 20.33%. This is significantly above the industry average of 11.16%.
• The 3 year average ROIC (20.33%) for TSM is below the current ROIC(21.81%), indicating increased profibility in the last year.
• TSM's Profit Margin of 41.69% is amongst the best of the industry. TSM outperforms 96.33% of its industry peers.
• In the last couple of years the Profit Margin of TSM has grown nicely.
• The Operating Margin of TSM (47.12%) is better than 98.17% of its industry peers.
• In the last couple of years the Operating Margin of TSM has grown nicely.
• With an excellent Gross Margin value of 57.41%, TSM belongs to the best of the industry, outperforming 81.65% of the companies in the same industry.
• TSM's Gross Margin has improved in the last couple of years.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. TSM currently has a 8 as setup rating:

TSM has a bad technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 150.29, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for TSM in the last couple of days, which is a good sign.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of TSM contains the most current fundamental analsysis.

Check the latest full technical report of TSM for a complete technical analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.