TAIWAN SEMICONDUCTOR-SP ADR (TSM)
US8740391003 - ADR
TSM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. TSM has an excellent profitability rating, but there are some minor concerns on its financial health. TSM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
TSM had positive earnings in each of the past 5 years.
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.
TSM has a Return On Equity of 23.57%. This is amongst the best in the industry. TSM outperforms 85.85% of its industry peers.
With an excellent Return On Invested Capital value of 17.20%, TSM belongs to the best of the industry, outperforming 90.57% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TSM is significantly above the industry average of 10.31%.
| 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.
TSM has a better Operating Margin (41.82%) than 98.11% of its industry peers.
In the last couple of years the Operating Margin of TSM has grown nicely.
TSM has a Gross Margin of 53.57%. This is in the better half of the industry: TSM outperforms 68.87% of its industry peers.
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
Compared to 1 year ago, TSM has about the same amount of shares outstanding.
Compared to 5 years ago, TSM has about the same amount of shares outstanding.
Compared to 1 year ago, TSM has an improved debt to assets ratio.
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.
A Debt/Equity ratio of 0.26 indicates that TSM is not too dependend on debt financing.
TSM has a Debt to Equity ratio (0.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
TSM has a Current Ratio of 2.39. This indicates that TSM is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.39, TSM is not doing good in the industry: 64.15% of the companies in the same industry are doing better.
A Quick Ratio of 2.13 indicates that TSM has no problem at all paying its short term obligations.
With a Quick ratio value of 2.13, TSM perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.13 |
3. Growth
3.1 Past
TSM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.01%.
The Earnings Per Share has been growing by 19.00% on average over the past years. This is quite good.
Looking at the last year, TSM shows a decrease in Revenue. The Revenue has decreased by -1.56% in the last year.
TSM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.95% yearly.
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
Based on estimates for the next years, TSM will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.48% on average per year.
The Revenue is expected to grow by 13.31% on average over the next years. This is quite good.
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
TSM has a Yearly Dividend Yield of 1.63%.
Compared to an average industry Dividend Yield of 1.87, TSM pays a better dividend. On top of this TSM pays more dividend than 86.79% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, TSM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
The dividend of TSM is nicely growing with an annual growth rate of 7.06%!
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.
The dividend of TSM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.8%
EPS Next 2Y22.57%
EPS Next 3Y20.04%
TAIWAN SEMICONDUCTOR-SP ADR
NYSE:TSM (5/16/2024, 2:46:08 PM)
152.67
-2.91 (-1.87%)
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 Cap791.90B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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