TAIWAN SEMICONDUCTOR-SP ADR (TSM)
US8740391003 - ADR
Overall TSM gets a fundamental rating of 5 out of 10. We evaluated TSM against 107 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 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
TSM had positive earnings in each of the past 5 years.
TSM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 14.81%, TSM belongs to the best of the industry, outperforming 85.85% 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 85.85% of the companies in the same industry.
The Return On Invested Capital of TSM (17.20%) is better than 90.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSM is significantly above the industry average of 10.54%.
| 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 97.17% of its industry peers.
In the last couple of years the Profit Margin of TSM has grown nicely.
TSM has a better Operating Margin (41.82%) than 98.11% of its industry peers.
In the last couple of years the Operating Margin of TSM has grown nicely.
TSM has a better Gross Margin (53.57%) than 68.87% of its industry peers.
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
Compared to 1 year ago, TSM has about the same amount of shares outstanding.
TSM has about the same amout of shares outstanding than it did 5 years ago.
TSM has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of TSM is 2.11, which is a good value as it means it would take TSM, 2.11 years of fcf income to pay off all of its debts.
TSM's Debt to FCF ratio of 2.11 is fine compared to the rest of the industry. TSM outperforms 68.87% of its industry peers.
TSM has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.26, TSM perfoms like the industry average, outperforming 43.40% of the companies in the same 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
TSM has a Current Ratio of 2.39. This indicates that TSM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.39, TSM is doing worse than 64.15% of the companies in the same industry.
A Quick Ratio of 2.13 indicates that TSM has no problem at all paying its short term obligations.
TSM has a Quick ratio of 2.13. This is comparable to the rest of the industry: TSM outperforms 50.94% of its industry peers.
| 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%.
The Earnings Per Share has been growing by 19.00% on average over the past years. This is quite good.
The Revenue has decreased by -1.56% in the past year.
TSM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.95% yearly.
EPS 1Y (TTM)-16.01%
EPS 3Y17.43%
EPS 5Y19%
EPS growth Q2Q9.02%
Revenue 1Y (TTM)-1.56%
Revenue growth 3Y17.3%
Revenue growth 5Y15.95%
Revenue growth Q2Q16.52%
3.2 Future
TSM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.48% yearly.
TSM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.31% yearly.
EPS Next Y21.29%
EPS Next 2Y22.57%
EPS Next 3Y20.04%
EPS Next 5Y14.48%
Revenue Next Year23.84%
Revenue Next 2Y21.59%
Revenue Next 3Y14.29%
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 20.04% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.57%
EPS Next 3Y20.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.68%, TSM has a reasonable but not impressive dividend return.
TSM's Dividend Yield is rather good when compared to the industry average which is at 2.04. TSM pays more dividend than 87.74% of the companies in the same industry.
TSM's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
On average, the dividend of TSM grows each year by 7.06%, which is quite nice.
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
TSM pays out 34.80% of its income as dividend. This is a sustainable payout ratio.
TSM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.8%
EPS Next 2Y22.57%
EPS Next 3Y20.04%
TAIWAN SEMICONDUCTOR-SP ADR
NYSE:TSM (5/8/2024, 12:15:09 PM)
142.13
+1.02 (+0.72%)
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 Cap737.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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)
Growth
EPS 1Y (TTM)-16.01%
EPS 3Y17.43%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.56%
Revenue growth 3Y17.3%
Revenue growth 5Y
Revenue growth 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