TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis

NYSE:TSM • US8740391003

374.58 USD
-2.23 (-0.59%)
At close: Feb 27, 2026
365.95 USD
-8.63 (-2.3%)
Pre-Market: 3/2/2026, 5:49:05 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to TSM. TSM was compared to 115 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

9

1. Profitability

1.1 Basic Checks

  • In the past 5 years TSM has always been profitable.
  • TSM had a positive operating cash flow in each of the past 5 years.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500B 1T 1.5T 2T

1.2 Ratios

  • With an excellent Return On Assets value of 21.65%, TSM belongs to the best of the industry, outperforming 94.78% of the companies in the same industry.
  • TSM has a better Return On Equity (31.70%) than 93.04% of its industry peers.
  • With an excellent Return On Invested Capital value of 25.03%, TSM belongs to the best of the industry, outperforming 96.52% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for TSM is significantly above the industry average of 10.63%.
  • The last Return On Invested Capital (25.03%) for TSM is above the 3 year average (20.71%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 21.65%
ROE 31.7%
ROIC 25.03%
ROA(3y)18.11%
ROA(5y)18.17%
ROE(3y)27.77%
ROE(5y)29.06%
ROIC(3y)20.71%
ROIC(5y)20.6%
TSM Yearly ROA, ROE, ROICTSM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • TSM's Profit Margin of 45.10% is amongst the best of the industry. TSM outperforms 97.39% of its industry peers.
  • TSM's Profit Margin has improved in the last couple of years.
  • TSM has a better Operating Margin (50.83%) than 98.26% of its industry peers.
  • TSM's Operating Margin has improved in the last couple of years.
  • The Gross Margin of TSM (59.89%) is better than 86.09% of its industry peers.
  • TSM's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 50.83%
PM (TTM) 45.1%
GM 59.89%
OM growth 3Y0.87%
OM growth 5Y3.73%
PM growth 3Y0.15%
PM growth 5Y3.12%
GM growth 3Y0.19%
GM growth 5Y2.44%
TSM Yearly Profit, Operating, Gross MarginsTSM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. Health

2.1 Basic Checks

  • The number of shares outstanding for TSM remains at a similar level compared to 1 year ago.
  • TSM has about the same amout of shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, TSM has an improved debt to assets ratio.
TSM Yearly Shares OutstandingTSM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B
TSM Yearly Total Debt VS Total AssetsTSM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2T 4T 6T

2.2 Solvency

  • TSM has a debt to FCF ratio of 0.99. This is a very positive value and a sign of high solvency as it would only need 0.99 years to pay back of all of its debts.
  • TSM has a Debt to FCF ratio of 0.99. This is in the better half of the industry: TSM outperforms 73.04% of its industry peers.
  • TSM has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of TSM (0.16) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 0.99
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1T 2T 3T 4T 5T

2.3 Liquidity

  • A Current Ratio of 2.62 indicates that TSM has no problem at all paying its short term obligations.
  • TSM has a Current ratio of 2.62. This is comparable to the rest of the industry: TSM outperforms 43.48% of its industry peers.
  • TSM has a Quick Ratio of 2.42. This indicates that TSM is financially healthy and has no problem in meeting its short term obligations.
  • TSM has a Quick ratio (2.42) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.62
Quick Ratio 2.42
TSM Yearly Current Assets VS Current LiabilitesTSM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1T 2T 3T

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

9

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 46.39% over the past year.
  • Measured over the past years, TSM shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.10% on average per year.
  • TSM shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.61%.
  • Measured over the past years, TSM shows a very strong growth in Revenue. The Revenue has been growing by 23.25% on average per year.
EPS 1Y (TTM)46.39%
EPS 3Y19.11%
EPS 5Y27.1%
EPS Q2Q%34.95%
Revenue 1Y (TTM)31.61%
Revenue growth 3Y18.94%
Revenue growth 5Y23.25%
Sales Q2Q%20.45%

3.2 Future

  • The Earnings Per Share is expected to grow by 20.71% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, TSM will show a very strong growth in Revenue. The Revenue will grow by 20.99% on average per year.
EPS Next Y32.95%
EPS Next 2Y27.87%
EPS Next 3Y23.53%
EPS Next 5Y20.71%
Revenue Next Year31.45%
Revenue Next 2Y27.77%
Revenue Next 3Y26.05%
Revenue Next 5Y20.99%

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.
TSM Yearly Revenue VS EstimatesTSM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2T 4T 6T 8T 10T
TSM Yearly EPS VS EstimatesTSM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 200 400 600 800

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Find the best growth stocksShow best growing peers

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 23.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y27.87%
EPS Next 3Y23.53%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • TSM has a Yearly Dividend Yield of 1.10%. Purely for dividend investing, there may be better candidates out there.
  • TSM's Dividend Yield is rather good when compared to the industry average which is at 0.47. TSM pays more dividend than 84.35% of the companies in the same industry.
  • Compared to the average S&P500 Dividend Yield of 1.82, TSM is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.1%

5.2 History

  • The dividend of TSM is nicely growing with an annual growth rate of 12.47%!
  • 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)12.47%
Div Incr Years2
Div Non Decr Years2
TSM Yearly Dividends per shareTSM Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 27.17% of the earnings are spent on dividend by TSM. This is a low number and sustainable payout ratio.
  • The dividend of TSM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.17%
EPS Next 2Y27.87%
EPS Next 3Y23.53%
TSM Yearly Income VS Free CF VS DividendTSM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500B 1T 1.5T
TSM Dividend Payout.TSM Dividend Payout, showing the Payout Ratio.TSM Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

TAIWAN SEMICONDUCTOR-SP ADR

NYSE:TSM (2/27/2026, 8:04:00 PM)

Premarket: 365.95 -8.63 (-2.3%)

374.58

-2.23 (-0.59%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-15
Earnings (Next)04-15
Inst Owners36.14%
Inst Owner Change-2.41%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.94T
Revenue(TTM)3.81T
Net Income(TTM)1.72T
Analysts84.65
Price Target387.29 (3.39%)
Short Float %0.4%
Short Ratio1.47
Dividend
Industry RankSector Rank
Dividend Yield 1.1%
Yearly DividendN/A
Dividend Growth(5Y)12.47%
DP27.17%
Div Incr Years2
Div Non Decr Years2
Ex-Date03-17
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.56%
Min EPS beat(2)5.16%
Max EPS beat(2)7.96%
EPS beat(4)4
Avg EPS beat(4)4.35%
Min EPS beat(4)0.61%
Max EPS beat(4)7.96%
EPS beat(8)7
Avg EPS beat(8)3.89%
EPS beat(12)11
Avg EPS beat(12)4.06%
EPS beat(16)15
Avg EPS beat(16)4.08%
Revenue beat(2)1
Avg Revenue beat(2)-0.15%
Min Revenue beat(2)-0.54%
Max Revenue beat(2)0.24%
Revenue beat(4)1
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)0.24%
Revenue beat(8)2
Avg Revenue beat(8)-0.49%
Revenue beat(12)2
Avg Revenue beat(12)-0.9%
Revenue beat(16)3
Avg Revenue beat(16)-0.83%
PT rev (1m)26.47%
PT rev (3m)28.6%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)21.9%
EPS NY rev (1m)0%
EPS NY rev (3m)13.59%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)10.14%
Revenue NY rev (1m)7.88%
Revenue NY rev (3m)9.42%
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
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 21.65%
ROE 31.7%
ROCE 29.9%
ROIC 25.03%
ROICexc 47.58%
ROICexgc 47.58%
OM 50.83%
PM (TTM) 45.1%
GM 59.89%
FCFM 26.32%
ROA(3y)18.11%
ROA(5y)18.17%
ROE(3y)27.77%
ROE(5y)29.06%
ROIC(3y)20.71%
ROIC(5y)20.6%
ROICexc(3y)37.25%
ROICexc(5y)35.8%
ROICexgc(3y)37.43%
ROICexgc(5y)36.08%
ROCE(3y)24.74%
ROCE(5y)24.77%
ROICexgc growth 3Y6.86%
ROICexgc growth 5Y7.12%
ROICexc growth 3Y7.24%
ROICexc growth 5Y7.51%
OM growth 3Y0.87%
OM growth 5Y3.73%
PM growth 3Y0.15%
PM growth 5Y3.12%
GM growth 3Y0.19%
GM growth 5Y2.44%
F-Score8
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 0.99
Debt/EBITDA 0.33
Cap/Depr 184.92%
Cap/Sales 33.4%
Interest Coverage 101.21
Cash Conversion 86.69%
Profit Quality 58.36%
Current Ratio 2.62
Quick Ratio 2.42
Altman-Z N/A
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)170%
Cap/Depr(5y)192%
Cap/Sales(3y)36.98%
Cap/Sales(5y)42.5%
Profit Quality(3y)55.32%
Profit Quality(5y)52.29%
High Growth Momentum
Growth
EPS 1Y (TTM)46.39%
EPS 3Y19.11%
EPS 5Y27.1%
EPS Q2Q%34.95%
EPS Next Y32.95%
EPS Next 2Y27.87%
EPS Next 3Y23.53%
EPS Next 5Y20.71%
Revenue 1Y (TTM)31.61%
Revenue growth 3Y18.94%
Revenue growth 5Y23.25%
Sales Q2Q%20.45%
Revenue Next Year31.45%
Revenue Next 2Y27.77%
Revenue Next 3Y26.05%
Revenue Next 5Y20.99%
EBIT growth 1Y46.45%
EBIT growth 3Y19.97%
EBIT growth 5Y27.85%
EBIT Next Year86.92%
EBIT Next 3Y40.31%
EBIT Next 5Y29.62%
FCF growth 1Y16.4%
FCF growth 3Y24.38%
FCF growth 5Y26.8%
OCF growth 1Y24.58%
OCF growth 3Y12.2%
OCF growth 5Y22.56%

TAIWAN SEMICONDUCTOR-SP ADR / TSM FAQ

Can you provide the ChartMill fundamental rating for TAIWAN SEMICONDUCTOR-SP ADR?

ChartMill assigns a fundamental rating of 7 / 10 to TSM.


Can you provide the valuation status for TAIWAN SEMICONDUCTOR-SP ADR?

ChartMill assigns a valuation rating of 1 / 10 to TAIWAN SEMICONDUCTOR-SP ADR (TSM). This can be considered as Overvalued.


What is the profitability of TSM stock?

TAIWAN SEMICONDUCTOR-SP ADR (TSM) has a profitability rating of 9 / 10.


Can you provide the expected EPS growth for TSM stock?

The Earnings per Share (EPS) of TAIWAN SEMICONDUCTOR-SP ADR (TSM) is expected to grow by 32.95% in the next year.