TAIWAN SEMICONDUCTOR-SP ADR (TSM)
US8740391003 - ADR
We assign a fundamental rating of 6 out of 10 to TSM. TSM was compared to 108 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
Each year in the past 5 years TSM has been profitable.
In the past 5 years TSM always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 15.43%, TSM belongs to the best of the industry, outperforming 87.04% of the companies in the same industry.
Looking at the Return On Equity, with a value of 24.35%, TSM belongs to the top of the industry, outperforming 87.96% of the companies in the same industry.
TSM's Return On Invested Capital of 18.10% is amongst the best of the industry. TSM outperforms 91.67% 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 11.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.43% | ||
| ROE | 24.35% | ||
| ROIC | 18.1% |
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
Looking at the Profit Margin, with a value of 37.85%, TSM belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
In the last couple of years the Profit Margin of TSM has grown nicely.
TSM has a Operating Margin of 41.99%. This is amongst the best in the industry. TSM outperforms 98.15% of its industry peers.
In the last couple of years the Operating Margin of TSM has grown nicely.
TSM has a better Gross Margin (53.36%) than 73.15% of its industry peers.
TSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.99% | ||
| PM (TTM) | 37.85% | ||
| GM | 53.36% |
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.
The number of shares outstanding for TSM remains at a similar level compared to 5 years ago.
The debt/assets ratio for TSM has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of TSM is 1.45, which is an excellent value as it means it would take TSM, only 1.45 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.45, TSM is in the better half of the industry, outperforming 75.93% of the companies in the same industry.
A Debt/Equity ratio of 0.26 indicates that TSM is not too dependend on debt financing.
The Debt to Equity ratio of TSM (0.26) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.45 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.47 indicates that TSM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.47, TSM is in line with its industry, outperforming 41.67% of the companies in the same industry.
A Quick Ratio of 2.21 indicates that TSM has no problem at all paying its short term obligations.
TSM has a Quick ratio (2.21) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
TSM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.83%, which is quite good.
TSM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.00% yearly.
TSM shows a decrease in Revenue. In the last year, the revenue decreased by -4.51%.
Measured over the past years, TSM shows a quite strong growth in Revenue. The Revenue has been growing by 15.95% on average per year.
EPS 1Y (TTM)15.83%
EPS 3Y17.43%
EPS 5Y19%
EPS Q2Q%54.05%
Revenue 1Y (TTM)-4.51%
Revenue growth 3Y17.3%
Revenue growth 5Y15.95%
Sales Q2Q%38.95%
3.2 Future
The Earnings Per Share is expected to grow by 14.51% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.35% on average over the next years. This is quite good.
EPS Next Y40.59%
EPS Next 2Y34.93%
EPS Next 3Y29.2%
EPS Next 5Y14.51%
Revenue Next Year32.78%
Revenue Next 2Y29.06%
Revenue Next 3Y24.5%
Revenue Next 5Y13.35%
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.
A more expensive valuation may be justified as TSM's earnings are expected to grow with 29.20% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y34.93%
EPS Next 3Y29.2%
5. Dividend
5.1 Amount
TSM has a Yearly Dividend Yield of 1.55%.
TSM's Dividend Yield is rather good when compared to the industry average which is at 2.36. TSM pays more dividend than 86.11% of the companies in the same industry.
TSM's Dividend Yield is slightly below the S&P500 average, which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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.
TSM has decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.06%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
34.41% of the earnings are spent on dividend by TSM. This is a low number and sustainable payout ratio.
The dividend of TSM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.41%
EPS Next 2Y34.93%
EPS Next 3Y29.2%
TAIWAN SEMICONDUCTOR-SP ADR
NYSE:TSM (11/15/2024, 8:04:00 PM)
After market: 187.13 +1.12 (+0.6%)186.01
-2.49 (-1.32%)
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 Cap964.66B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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(16)
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Revenue beat(2)
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Revenue beat(4)
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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 | 15.43% | ||
| ROE | 24.35% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 41.99% | ||
| PM (TTM) | 37.85% | ||
| GM | 53.36% | ||
| 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 Turnover0.41
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 | 2.47 | ||
| Quick Ratio | 2.21 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)15.83%
EPS 3Y17.43%
EPS 5Y
EPS Q2Q%
EPS Next Y40.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.51%
Revenue growth 3Y17.3%
Revenue growth 5Y
Sales 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