TAIWAN SEMICONDUCTOR-SP ADR (TSM) Fundamental Analysis & Valuation

NYSE:TSM • US8740391003

Current stock price

397.67 USD
+1.61 (+0.41%)
At close:
397.66 USD
-0.01 (0%)
After Hours:

This TSM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. TSM Profitability Analysis

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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500B 1T 1.5T 2T

1.2 Ratios

  • TSM's Return On Assets of 22.27% is amongst the best of the industry. TSM outperforms 93.91% of its industry peers.
  • With an excellent Return On Equity value of 32.74%, TSM belongs to the best of the industry, outperforming 93.04% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 26.37%, TSM belongs to the best of the industry, outperforming 96.52% of the companies in the same industry.
  • TSM had an Average Return On Invested Capital over the past 3 years of 20.71%. This is significantly above the industry average of 10.73%.
  • The 3 year average ROIC (20.71%) for TSM is below the current ROIC(26.37%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 22.27%
ROE 32.74%
ROIC 26.37%
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 47.00% 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 (53.31%) than 98.26% of its industry peers.
  • TSM's Operating Margin has improved in the last couple of years.
  • TSM has a Gross Margin of 61.87%. This is amongst the best in the industry. TSM outperforms 86.09% of its industry peers.
  • In the last couple of years the Gross Margin of TSM has grown nicely.
Industry RankSector Rank
OM 53.31%
PM (TTM) 47%
GM 61.87%
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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5

2. TSM Health Analysis

2.1 Basic Checks

  • The number of shares outstanding for TSM remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, TSM has about the same amount of shares outstanding.
  • 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 0.97. This is a very positive value and a sign of high solvency as it would only need 0.97 years to pay back of all of its debts.
  • The Debt to FCF ratio of TSM (0.97) is better than 75.65% of its industry peers.
  • A Debt/Equity ratio of 0.15 indicates that TSM is not too dependend on debt financing.
  • TSM has a Debt to Equity ratio (0.15) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.15
Debt/FCF 0.97
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

  • TSM has a Current Ratio of 2.49. This indicates that TSM is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of TSM (2.49) is worse than 64.35% of its industry peers.
  • TSM has a Quick Ratio of 2.31. This indicates that TSM is financially healthy and has no problem in meeting its short term obligations.
  • The Quick ratio of TSM (2.31) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.49
Quick Ratio 2.31
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. TSM Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 47.34% 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 30.66%.
  • 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)47.34%
EPS 3Y19.11%
EPS 5Y27.1%
EPS Q2Q%58.39%
Revenue 1Y (TTM)30.66%
Revenue growth 3Y18.94%
Revenue growth 5Y23.25%
Sales Q2Q%35.13%

3.2 Future

  • Based on estimates for the next years, TSM will show a very strong growth in Earnings Per Share. The EPS will grow by 20.53% on average per year.
  • The Revenue is expected to grow by 20.95% on average over the next years. This is a very strong growth
EPS Next Y39.1%
EPS Next 2Y31.87%
EPS Next 3Y28.73%
EPS Next 5Y20.53%
Revenue Next Year32.49%
Revenue Next 2Y28.74%
Revenue Next 3Y27.01%
Revenue Next 5Y20.95%

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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1

4. TSM Valuation Analysis

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

  • The excellent profitability rating of TSM may justify a higher PE ratio.
  • TSM's earnings are expected to grow with 28.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y31.87%
EPS Next 3Y28.73%

More info and screens

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

6

5. TSM Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.01%, 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 0.42. TSM pays more dividend than 86.96% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, TSM's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.01%

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

  • TSM pays out 25.55% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of TSM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP25.55%
EPS Next 2Y31.87%
EPS Next 3Y28.73%
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

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TSM Fundamentals: All Metrics, Ratios and Statistics

TAIWAN SEMICONDUCTOR-SP ADR

NYSE:TSM (5/1/2026, 8:04:00 PM)

After market: 397.66 -0.01 (0%)

397.67

+1.61 (+0.41%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Industry StrengthN/A
Industry GrowthN/A
Earnings (Last)04-16
Earnings (Next)07-15
Inst Owners35.52%
Inst Owner Change-0.26%
Ins Owners0.02%
Ins Owner Change0%
Market Cap2.06T
Revenue(TTM)4.10T
Net Income(TTM)1.93T
Analysts84.65
Price Target413.83 (4.06%)
Short Float %0.53%
Short Ratio1.92
Dividend
Industry RankSector Rank
Dividend Yield 1.01%
Yearly DividendN/A
Dividend Growth(5Y)12.47%
DP25.55%
Div Incr Years2
Div Non Decr Years2
Ex-Date06-11
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.83%
Min EPS beat(2)4.46%
Max EPS beat(2)5.21%
EPS beat(4)4
Avg EPS beat(4)5.32%
Min EPS beat(4)3.66%
Max EPS beat(4)7.96%
EPS beat(8)7
Avg EPS beat(8)4.09%
EPS beat(12)11
Avg EPS beat(12)3.98%
EPS beat(16)15
Avg EPS beat(16)3.88%
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-0.59%
Max Revenue beat(2)-0.54%
Revenue beat(4)1
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-1.39%
Max Revenue beat(4)0.24%
Revenue beat(8)2
Avg Revenue beat(8)-0.52%
Revenue beat(12)2
Avg Revenue beat(12)-0.64%
Revenue beat(16)2
Avg Revenue beat(16)-1.01%
PT rev (1m)6.85%
PT rev (3m)35.14%
EPS NQ rev (1m)7.14%
EPS NQ rev (3m)8.42%
EPS NY rev (1m)1.17%
EPS NY rev (3m)4.64%
Revenue NQ rev (1m)4.14%
Revenue NQ rev (3m)5.04%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)8.74%
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 Number0 (-100%)
Profitability
Industry RankSector Rank
ROA 22.27%
ROE 32.74%
ROCE 31.5%
ROIC 26.37%
ROICexc 51.4%
ROICexgc 51.4%
OM 53.31%
PM (TTM) 47%
GM 61.87%
FCFM 25.54%
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 Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.15
Debt/FCF 0.97
Debt/EBITDA 0.3
Cap/Depr 191.66%
Cap/Sales 31.68%
Interest Coverage 113.02
Cash Conversion 81.93%
Profit Quality 54.34%
Current Ratio 2.49
Quick Ratio 2.31
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)47.34%
EPS 3Y19.11%
EPS 5Y27.1%
EPS Q2Q%58.39%
EPS Next Y39.1%
EPS Next 2Y31.87%
EPS Next 3Y28.73%
EPS Next 5Y20.53%
Revenue 1Y (TTM)30.66%
Revenue growth 3Y18.94%
Revenue growth 5Y23.25%
Sales Q2Q%35.13%
Revenue Next Year32.49%
Revenue Next 2Y28.74%
Revenue Next 3Y27.01%
Revenue Next 5Y20.95%
EBIT growth 1Y47.82%
EBIT growth 3Y19.97%
EBIT growth 5Y27.85%
EBIT Next Year88.51%
EBIT Next 3Y41.92%
EBIT Next 5Y30.89%
FCF growth 1Y129.29%
FCF growth 3Y24.38%
FCF growth 5Y26.8%
OCF growth 1Y81.62%
OCF growth 3Y12.2%
OCF growth 5Y22.56%

TAIWAN SEMICONDUCTOR-SP ADR / TSM Fundamental Analysis 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.


How profitable is TAIWAN SEMICONDUCTOR-SP ADR (TSM) stock?

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


Is the dividend of TAIWAN SEMICONDUCTOR-SP ADR sustainable?

The dividend rating of TAIWAN SEMICONDUCTOR-SP ADR (TSM) is 6 / 10 and the dividend payout ratio is 25.55%.