TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis
NYSE:TSM - New York Stock Exchange, Inc. - US8740391003 - ADR - Currency: USD
Taking everything into account, TSM scores 6 out of 10 in our fundamental rating. TSM was compared to 109 industry peers in the Semiconductors & Semiconductor Equipment industry. While TSM has a great profitability rating, there are some minor concerns on its financial health. TSM shows excellent growth, but is valued quite expensive already. This makes TSM very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past 5 years TSM has always been profitable.
In the past 5 years TSM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TSM (17.53%) is better than 91.74% of its industry peers.
Looking at the Return On Equity, with a value of 27.36%, TSM belongs to the top of the industry, outperforming 89.91% of the companies in the same industry.
TSM has a better Return On Invested Capital (20.58%) than 93.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSM is significantly above the industry average of 11.14%.
The last Return On Invested Capital (20.58%) for TSM is above the 3 year average (20.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.53% | ||
| ROE | 27.36% | ||
| ROIC | 20.58% |
ROA(3y)17.72%
ROA(5y)17.59%
ROE(3y)28.7%
ROE(5y)28.32%
ROIC(3y)20.33%
ROIC(5y)20.03%
1.3 Margins
TSM has a better Profit Margin (40.54%) than 96.33% of its industry peers.
TSM's Profit Margin has improved in the last couple of years.
TSM's Operating Margin of 45.68% is amongst the best of the industry. TSM outperforms 98.17% of its industry peers.
TSM's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 56.12%, TSM is doing good in the industry, outperforming 79.82% of the companies in the same industry.
TSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.68% | ||
| PM (TTM) | 40.54% | ||
| GM | 56.12% |
OM growth 3Y3.71%
OM growth 5Y5.53%
PM growth 3Y2.56%
PM growth 5Y4.67%
GM growth 3Y2.82%
GM growth 5Y4.04%
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 1.13, which is an excellent value as it means it would take TSM, only 1.13 years of fcf income to pay off all of its debts.
TSM has a Debt to FCF ratio of 1.13. This is in the better half of the industry: TSM outperforms 76.15% of its industry peers.
TSM has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TSM (0.22) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.44 indicates that TSM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.44, TSM is doing worse than 63.30% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| 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 39.91%, which is quite impressive.
TSM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.73% yearly.
The Revenue has grown by 33.89% 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!
EPS 1Y (TTM)39.91%
EPS 3Y25.28%
EPS 5Y27.73%
EPS Q2Q%56.89%
Revenue 1Y (TTM)33.89%
Revenue growth 3Y22.17%
Revenue growth 5Y22.02%
Sales Q2Q%38.84%
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 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.
EPS Next Y35.3%
EPS Next 2Y27.39%
EPS Next 3Y24.78%
EPS Next 5Y16.8%
Revenue Next Year28.25%
Revenue Next 2Y23.59%
Revenue Next 3Y22.2%
Revenue Next 5Y15.37%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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 24.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y27.39%
EPS Next 3Y24.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.99%, TSM has a reasonable but not impressive dividend return.
The stock price of TSM dropped by -28.26% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.10, TSM pays a better dividend. On top of this TSM pays more dividend than 86.24% of the companies listed in the same industry.
TSM's Dividend Yield is slightly below the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
The dividend of TSM is nicely growing with an annual growth rate of 6.96%!
TSM has been paying a dividend for at least 10 years, so it has a reliable track record.
TSM has decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.96%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
30.94% of the earnings are spent on dividend by TSM. This is a low number and sustainable payout ratio.
TSM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.94%
EPS Next 2Y27.39%
EPS Next 3Y24.78%
151.74
+0.07 (+0.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners36.98%
Inst Owner Change0.01%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap787.01B
Analysts84.74
Price Target183.71 (21.07%)
Short Float %0.7%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly DividendN/A
Dividend Growth(5Y)6.96%
DP30.94%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.61%
Min EPS beat(2)-0.17%
Max EPS beat(2)7.39%
EPS beat(4)3
Avg EPS beat(4)3.44%
Min EPS beat(4)-0.17%
Max EPS beat(4)7.39%
EPS beat(8)7
Avg EPS beat(8)3.92%
EPS beat(12)11
Avg EPS beat(12)3.99%
EPS beat(16)13
Avg EPS beat(16)3.01%
Revenue beat(2)0
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)-0.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.18%
Min Revenue beat(4)-0.72%
Max Revenue beat(4)0.41%
Revenue beat(8)1
Avg Revenue beat(8)-0.95%
Revenue beat(12)2
Avg Revenue beat(12)-0.84%
Revenue beat(16)2
Avg Revenue beat(16)-1%
PT rev (1m)-6.42%
PT rev (3m)-13.35%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)9.22%
EPS NY rev (1m)-0.55%
EPS NY rev (3m)3.98%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)5.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | N/A | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)N/A
EYN/A
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpSN/A
BVpSN/A
TBVpSN/A
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.53% | ||
| ROE | 27.36% | ||
| ROCE | 24.36% | ||
| ROIC | 20.58% | ||
| ROICexc | 37.16% | ||
| ROICexgc | 37.16% | ||
| OM | 45.68% | ||
| PM (TTM) | 40.54% | ||
| GM | 56.12% | ||
| FCFM | 30.06% |
ROA(3y)17.72%
ROA(5y)17.59%
ROE(3y)28.7%
ROE(5y)28.32%
ROIC(3y)20.33%
ROIC(5y)20.03%
ROICexc(3y)34.3%
ROICexc(5y)33.06%
ROICexgc(3y)34.51%
ROICexgc(5y)33.39%
ROCE(3y)24.07%
ROCE(5y)24.08%
ROICexcg growth 3Y8.15%
ROICexcg growth 5Y6.77%
ROICexc growth 3Y8.67%
ROICexc growth 5Y7.14%
OM growth 3Y3.71%
OM growth 5Y5.53%
PM growth 3Y2.56%
PM growth 5Y4.67%
GM growth 3Y2.82%
GM growth 5Y4.04%
F-Score9
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.13 | ||
| Debt/EBITDA | 0.47 | ||
| Cap/Depr | 144.24% | ||
| Cap/Sales | 33.03% | ||
| Interest Coverage | 70.51 | ||
| Cash Conversion | 92.01% | ||
| Profit Quality | 74.17% | ||
| Current Ratio | 2.44 | ||
| Quick Ratio | 2.21 | ||
| Altman-Z | N/A |
F-Score9
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)190.98%
Cap/Depr(5y)185.91%
Cap/Sales(3y)41.78%
Cap/Sales(5y)43.48%
Profit Quality(3y)53.2%
Profit Quality(5y)52.58%
High Growth Momentum
Growth
EPS 1Y (TTM)39.91%
EPS 3Y25.28%
EPS 5Y27.73%
EPS Q2Q%56.89%
EPS Next Y35.3%
EPS Next 2Y27.39%
EPS Next 3Y24.78%
EPS Next 5Y16.8%
Revenue 1Y (TTM)33.89%
Revenue growth 3Y22.17%
Revenue growth 5Y22.02%
Sales Q2Q%38.84%
Revenue Next Year28.25%
Revenue Next 2Y23.59%
Revenue Next 3Y22.2%
Revenue Next 5Y15.37%
EBIT growth 1Y43.47%
EBIT growth 3Y26.7%
EBIT growth 5Y28.77%
EBIT Next Year93%
EBIT Next 3Y39.24%
EBIT Next 5Y25.4%
FCF growth 1Y203.58%
FCF growth 3Y48.84%
FCF growth 5Y43.03%
OCF growth 1Y47.04%
OCF growth 3Y17.98%
OCF growth 5Y24.31%