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 scores excellent on profitability, 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
With an excellent Return On Assets value of 14.81%, TSM belongs to the best of the industry, outperforming 84.11% of the companies in the same industry.
Looking at the Return On Equity, with a value of 23.57%, TSM belongs to the top of the industry, outperforming 84.11% of the companies in the same industry.
TSM has a Return On Invested Capital of 17.20%. This is amongst the best in the industry. TSM outperforms 88.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSM is significantly above the industry average of 10.93%.
| 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 better Profit Margin (38.16%) than 97.20% of its industry peers.
TSM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 41.82%, TSM belongs to the top of the industry, outperforming 98.13% of the companies in the same industry.
TSM's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 53.57%, TSM is doing good in the industry, outperforming 68.22% of the companies in the same industry.
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
TSM has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, TSM has about the same amount of shares outstanding.
The debt/assets ratio for TSM has been reduced compared to a year ago.
2.2 Solvency
TSM has a debt to FCF ratio of 2.11. This is a good value and a sign of high solvency as TSM would need 2.11 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.11, TSM is in the better half of the industry, outperforming 66.36% of the companies in the same industry.
TSM has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
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 | 2.11 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.39 indicates that TSM has no problem at all paying its short term obligations.
TSM has a Current ratio of 2.39. This is in the lower half of the industry: TSM underperforms 60.75% of its industry peers.
TSM has a Quick Ratio of 2.13. This indicates that TSM is financially healthy and has no problem in meeting its short term obligations.
TSM has a Quick ratio (2.13) which is comparable to the rest of the 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%.
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 -1.56%.
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)-16.01%
EPS 3Y17.43%
EPS 5Y19%
EPS Q2Q%9.02%
Revenue 1Y (TTM)-1.56%
Revenue growth 3Y17.3%
Revenue growth 5Y15.95%
Sales Q2Q%16.52%
3.2 Future
The Earnings Per Share is expected to grow by 14.48% on average over the next years. This is quite good.
Based on estimates for the next years, TSM will show a quite strong growth in Revenue. The Revenue will grow by 13.31% on average per year.
EPS Next Y23.11%
EPS Next 2Y24.04%
EPS Next 3Y21.89%
EPS Next 5Y14.48%
Revenue Next Year26.55%
Revenue Next 2Y23.42%
Revenue Next 3Y20.75%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last 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
The excellent profitability rating of TSM may justify a higher PE ratio.
A more expensive valuation may be justified as TSM's earnings are expected to grow with 21.89% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y24.04%
EPS Next 3Y21.89%
5. Dividend
5.1 Amount
TSM has a Yearly Dividend Yield of 1.67%.
Compared to an average industry Dividend Yield of 1.79, TSM pays a better dividend. On top of this TSM pays more dividend than 86.92% of the companies listed in the same industry.
TSM's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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
34.80% 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.
DP34.8%
EPS Next 2Y24.04%
EPS Next 3Y21.89%
TAIWAN SEMICONDUCTOR-SP ADR
NYSE:TSM (5/31/2024, 7:10:29 PM)
After market: 151.45 +0.41 (+0.27%)151.04
-1.92 (-1.26%)
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 Cap783.40B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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)
High Growth Momentum
Growth
EPS 1Y (TTM)-16.01%
EPS 3Y17.43%
EPS 5Y
EPS Q2Q%
EPS Next Y23.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.56%
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