Logo image of TSM

TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis

NYSE:TSM - New York Stock Exchange, Inc. - US8740391003 - ADR - Currency: USD

200.1  -0.85 (-0.42%)

Premarket: 201.37 +1.27 (+0.63%)

Fundamental Rating

6

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. While TSM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TSM is valued quite expensive, but it does show an excellent growth. These ratings could make TSM a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

Quickly go to:

9

1. Profitability

1.1 Basic Checks

In the past 5 years TSM has always been profitable.
Each year in the past 5 years TSM had a positive operating cash flow.
TSM Yearly Net Income VS EBIT VS OCF VS FCFTSM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500B 1T 1.5T

1.2 Ratios

TSM has a Return On Assets of 17.53%. This is amongst the best in the industry. TSM outperforms 91.67% of its industry peers.
TSM has a better Return On Equity (27.36%) than 89.81% of its industry peers.
With an excellent Return On Invested Capital value of 20.58%, TSM belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
TSM had an Average Return On Invested Capital over the past 3 years of 20.33%. This is significantly above the industry average of 11.67%.
The 3 year average ROIC (20.33%) for TSM is below the current ROIC(20.58%), indicating increased profibility in the last year.
Industry RankSector 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%
TSM Yearly ROA, ROE, ROICTSM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

TSM's Profit Margin of 40.54% is amongst the best of the industry. TSM outperforms 96.30% of its industry peers.
In the last couple of years the Profit Margin of TSM has grown nicely.
With an excellent Operating Margin value of 45.68%, TSM belongs to the best of the industry, outperforming 98.15% of the companies in the same industry.
In the last couple of years the Operating Margin of TSM has grown nicely.
With a decent Gross Margin value of 56.12%, TSM is doing good in the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Gross Margin of TSM has grown nicely.
Industry RankSector 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%
TSM Yearly Profit, Operating, Gross MarginsTSM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

More info and screens

5

2. Health

2.1 Basic Checks

The number of shares outstanding for TSM remains at a similar level compared to 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.
TSM Yearly Shares OutstandingTSM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B
TSM Yearly Total Debt VS Total AssetsTSM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2T 4T 6T

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.
The Debt to FCF ratio of TSM (1.13) is better than 76.85% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that TSM is not too dependend on debt financing.
TSM has a Debt to Equity ratio of 0.22. This is comparable to the rest of the industry: TSM outperforms 43.52% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 1.13
Altman-Z N/A
ROIC/WACCN/A
WACCN/A
TSM Yearly LT Debt VS Equity VS FCFTSM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1T 2T 3T 4T

2.3 Liquidity

TSM has a Current Ratio of 2.44. This indicates that TSM is financially healthy and has no problem in meeting its short term obligations.
TSM has a Current ratio of 2.44. This is comparable to the rest of the industry: TSM outperforms 41.67% of its industry peers.
A Quick Ratio of 2.21 indicates that TSM has no problem at all paying its short term obligations.
TSM's Quick ratio of 2.21 is in line compared to the rest of the industry. TSM outperforms 53.70% of its industry peers.
Industry RankSector Rank
Current Ratio 2.44
Quick Ratio 2.21
TSM Yearly Current Assets VS Current LiabilitesTSM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1T 2T 3T

More info and screens

8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 39.91% over the past year.
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!
Measured over the past years, TSM shows a very strong growth in Revenue. The Revenue has been growing by 22.02% on average per year.
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 16.90% on average per year.
The Revenue is expected to grow by 15.47% on average over the next years. This is quite good.
EPS Next Y35.77%
EPS Next 2Y27.43%
EPS Next 3Y23.84%
EPS Next 5Y16.9%
Revenue Next Year27.92%
Revenue Next 2Y23.27%
Revenue Next 3Y21.89%
Revenue Next 5Y15.47%

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.
TSM Yearly Revenue VS EstimatesTSM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2T 4T 6T
TSM Yearly EPS VS EstimatesTSM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 100 200 300 400

More info and screens

1

4. Valuation

4.1 Price/Earnings Ratio

Industry RankSector Rank
PE N/A
Fwd PE N/A
TSM Price Earnings VS Forward Price EarningsTSM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
TSM Per share dataTSM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share

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 23.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y27.43%
EPS Next 3Y23.84%

More info and screens

6

5. Dividend

5.1 Amount

TSM has a Yearly Dividend Yield of 1.56%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.34, TSM pays a better dividend. On top of this TSM pays more dividend than 86.11% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.29, TSM is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.56%

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.
The dividend of TSM decreased in the last 3 years.
Dividend Growth(5Y)6.96%
Div Incr Years2
Div Non Decr Years2
TSM Yearly Dividends per shareTSM Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

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 2Y27.43%
EPS Next 3Y23.84%
TSM Yearly Income VS Free CF VS DividendTSM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200B 400B 600B 800B 1T
TSM Dividend Payout.TSM Dividend Payout, showing the Payout Ratio.TSM Dividend Payout.PayoutRetained Earnings

More info and screens

TAIWAN SEMICONDUCTOR-SP ADR

NYSE:TSM (2/20/2025, 8:04:00 PM)

Premarket: 201.37 +1.27 (+0.63%)

200.1

-0.85 (-0.42%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-16 2025-01-16/dmh
Earnings (Next)04-16 2025-04-16/bmo
Inst Owners37.06%
Inst Owner Change2.62%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1037.83B
Analysts84.74
Price Target205.35 (2.62%)
Short Float %0.75%
Short Ratio2.36
Dividend
Industry RankSector Rank
Dividend Yield 1.56%
Yearly Dividend14
Dividend Growth(5Y)6.96%
DP30.94%
Div Incr Years2
Div Non Decr Years2
Ex-Date06-12 2025-06-12 (0.685453)
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)-3.14%
PT rev (3m)-3.77%
EPS NQ rev (1m)9.06%
EPS NQ rev (3m)29.17%
EPS NY rev (1m)4.34%
EPS NY rev (3m)4.33%
Revenue NQ rev (1m)4.8%
Revenue NQ rev (3m)13.25%
Revenue NY rev (1m)1.83%
Revenue NY rev (3m)2.63%
Valuation
Industry RankSector 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 RankSector 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 RankSector 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 Y35.77%
EPS Next 2Y27.43%
EPS Next 3Y23.84%
EPS Next 5Y16.9%
Revenue 1Y (TTM)33.89%
Revenue growth 3Y22.17%
Revenue growth 5Y22.02%
Sales Q2Q%38.84%
Revenue Next Year27.92%
Revenue Next 2Y23.27%
Revenue Next 3Y21.89%
Revenue Next 5Y15.47%
EBIT growth 1Y43.47%
EBIT growth 3Y26.7%
EBIT growth 5Y28.77%
EBIT Next Year92.91%
EBIT Next 3Y26.91%
EBIT Next 5Y25.53%
FCF growth 1Y203.58%
FCF growth 3Y48.84%
FCF growth 5Y43.03%
OCF growth 1Y47.04%
OCF growth 3Y17.98%
OCF growth 5Y24.31%