TAIWAN SEMICONDUCTOR-SP ADR(NYSE:TSM) stock Fundamental Analysis

Fundamental Rating

We assign a fundamental rating of 5 out of 10 to TSM. TSM was compared to 109 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.

Quickly go to:

1. Profitability

1.1 Basic Checks

TSM had positive earnings in 4 of the past 5 years.

Of the past 5 years TSM 4 years had a positive operating cash flow.

1.2 Ratios

With an excellent Return On Assets value of 16.82%, TSM belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.

TSM has a Return On Equity of 26.00%. This is amongst the best in the industry. TSM outperforms 88.89% of its industry peers.

TSM has a better Return On Invested Capital (19.84%) than 92.59% of its industry peers.

Measured over the past 3 years, the Average Return On Invested Capital for TSM is significantly above the industry average of 11.96%.

		Industry Rank	Sector Rank
ROA	16.82%
ROE	26%
ROIC	19.84%

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 39.12%, TSM belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.

TSM's Profit Margin has improved in the last couple of years.

TSM's Operating Margin of 43.62% is amongst the best of the industry. TSM outperforms 98.15% of its industry peers.

TSM's Operating Margin has improved in the last couple of years.

TSM has a better Gross Margin (54.45%) than 75.00% of its industry peers.

TSM's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	43.62%
PM (TTM)	39.12%
GM	54.45%

OM growth 3Y0.24%

OM growth 5Y2.69%

PM growth 3Y0.1%

PM growth 5Y2.64%

GM growth 3Y0.78%

GM growth 5Y2.4%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

There is no outstanding debt for TSM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

The Debt to FCF ratio of TSM is 1.24, which is an excellent value as it means it would take TSM, only 1.24 years of fcf income to pay off all of its debts.

TSM's Debt to FCF ratio of 1.24 is fine compared to the rest of the industry. TSM outperforms 77.78% of its industry peers.

TSM has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.

Looking at the Debt to Equity ratio, with a value of 0.24, TSM is in line with its industry, outperforming 41.67% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.24
Debt/FCF	1.24
Altman-Z	N/A

ROIC/WACCN/A

WACCN/A

2.3 Liquidity

A Current Ratio of 2.57 indicates that TSM has no problem at all paying its short term obligations.

With a Current ratio value of 2.57, TSM perfoms like the industry average, outperforming 46.30% of the companies in the same industry.

A Quick Ratio of 2.30 indicates that TSM has no problem at all paying its short term obligations.

With a Quick ratio value of 2.30, TSM perfoms like the industry average, outperforming 54.63% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.57
Quick Ratio	2.3

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 223.27% over the past year.

TSM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 51.02% yearly.

EPS 1Y (TTM)223.27%

EPS 3Y65.63%

EPS 5Y51.02%

EPS Q2Q%700.73%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%41.5%

3.2 Future

The Earnings Per Share is expected to decrease by -9.25% on average over the next years.

The Revenue is expected to grow by 11.09% on average over the next years. This is quite good.

EPS Next Y-43.69%

EPS Next 2Y-18.32%

EPS Next 3Y-16.63%

EPS Next 5Y-9.25%

Revenue Next Year25.75%

Revenue Next 2Y21.71%

Revenue Next 3Y11.48%

Revenue Next 5Y11.09%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

More info and screens

Find the best growth stocks

Show best growing peers

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 cheap valuation may be justified as TSM's earnings are expected to decrease with -16.63% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-18.32%

EPS Next 3Y-16.63%

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

TSM has a Yearly Dividend Yield of 1.43%.

Compared to an average industry Dividend Yield of 2.28, TSM pays a better dividend. On top of this TSM pays more dividend than 85.19% of the companies listed in the same industry.

Compared to the average S&P500 Dividend Yield of 2.28, TSM is paying slightly less dividend.

		Industry Rank	Sector Rank
Dividend Yield	1.43%

5.2 History

The dividend of TSM is nicely growing with an annual growth rate of 7.06%!

TSM has been paying a dividend for at least 10 years, so it has a reliable track record.

The dividend of TSM decreased in the last 3 years.

Dividend Growth(5Y)7.06%

Div Incr Years2

Div Non Decr Years2

5.3 Sustainability

32.50% of the earnings are spent on dividend by TSM. This is a low number and sustainable payout ratio.

DP32.5%

EPS Next 2Y-18.32%

EPS Next 3Y-16.63%

More info and screens

Find the best dividend stocks

Show peers with best dividend

TAIWAN SEMICONDUCTOR-SP ADR

NYSE:TSM (1/17/2025, 8:04:00 PM)

After market: 210.99 -0.51 (-0.24%)

211.5

-3.29 (-1.53%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupSemiconductors & Semiconductor Equipment

GICS IndustrySemiconductors & Semiconductor Equipment

Earnings (Last)01-16 2025-01-16/bmo

Earnings (Next)N/A N/A

Inst Owners37.06%

Inst Owner Change-0.12%

Ins OwnersN/A

Ins Owner ChangeN/A

Market Cap1096.86B

Analysts84.74

Price Target212 (0.24%)

Short Float %0.68%

Short Ratio2.61

Dividend

		Industry Rank	Sector Rank
Dividend Yield	1.43%

Yearly Dividend11.25

Dividend Growth(5Y)7.06%

DP32.5%

Div Incr Years2

Div Non Decr Years2

Ex-Date03-18 2025-03-18 (0.694165)

Surprises & Revisions

EPS beat(2)2

Avg EPS beat(2)5.49%

Min EPS beat(2)3.59%

Max EPS beat(2)7.39%

EPS beat(4)4

Avg EPS beat(4)4.32%

Min EPS beat(4)2.94%

Max EPS beat(4)7.39%

EPS beat(8)8

Avg EPS beat(8)4.04%

EPS beat(12)11

Avg EPS beat(12)3.94%

EPS beat(16)14

Avg EPS beat(16)3.1%

Revenue beat(2)1

Avg Revenue beat(2)-0.15%

Min Revenue beat(2)-0.72%

Max Revenue beat(2)0.41%

Revenue beat(4)1

Avg Revenue beat(4)-0.36%

Min Revenue beat(4)-0.82%

Max Revenue beat(4)0.41%

Revenue beat(8)1

Avg Revenue beat(8)-1.42%

Revenue beat(12)2

Avg Revenue beat(12)-0.97%

Revenue beat(16)2

Avg Revenue beat(16)-1.11%

PT rev (1m)5.8%

PT rev (3m)13.64%

EPS NQ rev (1m)0%

EPS NQ rev (3m)21.75%

EPS NY rev (1m)0%

EPS NY rev (3m)6.6%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)8.11%

Revenue NY rev (1m)0.55%

Revenue NY rev (3m)2.32%

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	16.82%
ROE	26%
ROCE	22.74%
ROIC	19.84%
ROICexc	35%
ROICexgc	35.27%
OM	43.62%
PM (TTM)	39.12%
GM	54.45%
FCFM	31.25%

ROA(3y)17.21%

ROA(5y)17.13%

ROE(3y)28.75%

ROE(5y)27.11%

ROIC(3y)20%

ROIC(5y)20.06%

ROICexc(3y)32.59%

ROICexc(5y)31.89%

ROICexgc(3y)32.95%

ROICexgc(5y)32.33%

ROCE(3y)23.2%

ROCE(5y)23.67%

ROICexcg growth 3Y-7.42%

ROICexcg growth 5Y-1.65%

ROICexc growth 3Y-7.1%

ROICexc growth 5Y-1.51%

OM growth 3Y0.24%

OM growth 5Y2.69%

PM growth 3Y0.1%

PM growth 5Y2.64%

GM growth 3Y0.78%

GM growth 5Y2.4%

F-Score8

Asset Turnover0.43

Health

		Industry Rank	Sector Rank
Debt/Equity	0.24
Debt/FCF	1.24
Debt/EBITDA	0.54
Cap/Depr	120.08%
Cap/Sales	29.12%
Interest Coverage	61.52
Cash Conversion	88.95%
Profit Quality	79.88%
Current Ratio	2.57
Quick Ratio	2.3
Altman-Z	N/A

F-Score8

WACCN/A

ROIC/WACCN/A

Cap/Depr(3y)209.84%

Cap/Depr(5y)189.81%

Cap/Sales(3y)48.59%

Cap/Sales(5y)45.65%

Profit Quality(3y)43.23%

Profit Quality(5y)46.17%

High Growth Momentum

Growth

EPS 1Y (TTM)223.27%

EPS 3Y65.63%

EPS 5Y51.02%

EPS Q2Q%700.73%

EPS Next Y-43.69%

EPS Next 2Y-18.32%

EPS Next 3Y-16.63%

EPS Next 5Y-9.25%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%41.5%

Revenue Next Year25.75%

Revenue Next 2Y21.71%

Revenue Next 3Y11.48%

Revenue Next 5Y11.09%

EBIT growth 1Y17.26%

EBIT growth 3Y17.59%

EBIT growth 5Y19.07%

EBIT Next Year112.45%

EBIT Next 3Y47.67%

EBIT Next 5Y26.92%

FCF growth 1Y61.94%

FCF growth 3Y-2.14%

FCF growth 5Y2.67%

OCF growth 1Y6.58%

OCF growth 3Y14.72%

OCF growth 5Y16.69%

TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens