TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TSM - US8740391003 - ADR
303.89 USD
+4.31 (+1.44%)
304.91 USD
+1.02 (+0.34%)
Taking everything into account, TSM scores 6 out of 10 in our fundamental rating. TSM was compared to 113 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 valued quite expensive, but it does show an excellent growth. These ratings would make TSM suitable for growth investing!
1. Profitability
1.1 Basic Checks
TSM had positive earnings in each of the past 5 years.
In the past 5 years TSM always reported a positive cash flow from operatings.
1.2 Ratios
TSM's Return On Assets of 21.58% is amongst the best of the industry. TSM outperforms 94.69% of its industry peers.
TSM's Return On Equity of 31.75% is amongst the best of the industry. TSM outperforms 92.92% of its industry peers.
TSM has a Return On Invested Capital of 24.97%. This is amongst the best in the industry. TSM outperforms 96.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSM is significantly above the industry average of 10.75%.
The 3 year average ROIC (20.33%) for TSM is below the current ROIC(24.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.58% | ||
| ROE | 31.75% | ||
| ROIC | 24.97% |
ROA(3y)17.72%
ROA(5y)17.59%
ROE(3y)28.7%
ROE(5y)28.32%
ROIC(3y)20.33%
ROIC(5y)20.03%
1.3 Margins
TSM's Profit Margin of 43.70% is amongst the best of the industry. TSM outperforms 97.35% of its industry peers.
In the last couple of years the Profit Margin of TSM has grown nicely.
The Operating Margin of TSM (49.48%) is better than 98.23% of its industry peers.
In the last couple of years the Operating Margin of TSM has grown nicely.
TSM's Gross Margin of 58.98% is amongst the best of the industry. TSM outperforms 84.07% of its industry peers.
In the last couple of years the Gross Margin of TSM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.48% | ||
| PM (TTM) | 43.7% | ||
| GM | 58.98% |
OM growth 3Y3.71%
OM growth 5Y5.53%
PM growth 3Y2.56%
PM growth 5Y4.67%
GM growth 3Y2.82%
GM growth 5Y4.04%
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.
2.2 Solvency
The Debt to FCF ratio of TSM is 1.08, which is an excellent value as it means it would take TSM, only 1.08 years of fcf income to pay off all of its debts.
TSM has a Debt to FCF ratio of 1.08. This is in the better half of the industry: TSM outperforms 75.22% of its industry peers.
TSM has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
TSM has a Debt to Equity ratio (0.18) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
TSM has a Current Ratio of 2.69. This indicates that TSM is financially healthy and has no problem in meeting its short term obligations.
TSM's Current ratio of 2.69 is in line compared to the rest of the industry. TSM outperforms 47.79% of its industry peers.
TSM has a Quick Ratio of 2.47. This indicates that TSM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.47, TSM is in line with its industry, outperforming 59.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.69 | ||
| Quick Ratio | 2.47 |
3. Growth
3.1 Past
TSM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.94%, which is quite impressive.
Measured over the past years, TSM shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.73% on average per year.
Looking at the last year, TSM shows a very strong growth in Revenue. The Revenue has grown by 36.96%.
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)52.94%
EPS 3Y25.28%
EPS 5Y27.73%
EPS Q2Q%39.07%
Revenue 1Y (TTM)36.96%
Revenue growth 3Y22.17%
Revenue growth 5Y22.02%
Sales Q2Q%30.31%
3.2 Future
The Earnings Per Share is expected to grow by 17.97% on average over the next years. This is quite good.
TSM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.88% yearly.
EPS Next Y44.47%
EPS Next 2Y32.39%
EPS Next 3Y28.29%
EPS Next 5Y17.97%
Revenue Next Year31.16%
Revenue Next 2Y26.63%
Revenue Next 3Y24.64%
Revenue Next 5Y17.88%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
TSM has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TSM's earnings are expected to grow with 28.29% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.39%
EPS Next 3Y28.29%
5. Dividend
5.1 Amount
TSM has a Yearly Dividend Yield of 1.37%.
TSM's Dividend Yield is rather good when compared to the industry average which is at 0.56. TSM pays more dividend than 84.07% of the companies in the same industry.
TSM's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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
5.3 Sustainability
TSM pays out 27.78% 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.
DP27.78%
EPS Next 2Y32.39%
EPS Next 3Y28.29%
303.89
+4.31 (+1.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners36.31%
Inst Owner Change-1.05%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.58T
Revenue(TTM)3.63T
Net Income(TTM)1.59T
Analysts85.58
Price Target306.23 (0.77%)
Short Float %0.52%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly DividendN/A
Dividend Growth(5Y)6.96%
DP27.78%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.81%
Min EPS beat(2)3.66%
Max EPS beat(2)7.96%
EPS beat(4)3
Avg EPS beat(4)3.02%
Min EPS beat(4)-0.17%
Max EPS beat(4)7.96%
EPS beat(8)7
Avg EPS beat(8)3.67%
EPS beat(12)11
Avg EPS beat(12)3.7%
EPS beat(16)14
Avg EPS beat(16)3.71%
Revenue beat(2)1
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)0.24%
Revenue beat(4)1
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)0.24%
Revenue beat(8)2
Avg Revenue beat(8)-0.52%
Revenue beat(12)2
Avg Revenue beat(12)-1.17%
Revenue beat(16)3
Avg Revenue beat(16)-0.9%
PT rev (1m)1.69%
PT rev (3m)14.19%
EPS NQ rev (1m)1.42%
EPS NQ rev (3m)19.77%
EPS NY rev (1m)1.22%
EPS NY rev (3m)8%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)10.1%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)3.32%
Valuation
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.58% | ||
| ROE | 31.75% | ||
| ROCE | 29.56% | ||
| ROIC | 24.97% | ||
| ROICexc | 45.62% | ||
| ROICexgc | 45.62% | ||
| OM | 49.48% | ||
| PM (TTM) | 43.7% | ||
| GM | 58.98% | ||
| FCFM | 24.49% |
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)34.57%
ROICexc(5y)33.22%
ROICexgc(3y)34.89%
ROICexgc(5y)33.62%
ROCE(3y)24.07%
ROCE(5y)24.08%
ROICexgc growth 3Y9.25%
ROICexgc growth 5Y7.42%
ROICexc growth 3Y9.44%
ROICexc growth 5Y7.6%
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-Score8
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.08 | ||
| Debt/EBITDA | 0.35 | ||
| Cap/Depr | 183.88% | ||
| Cap/Sales | 35.26% | ||
| Interest Coverage | 91.09 | ||
| Cash Conversion | 87.02% | ||
| Profit Quality | 56.03% | ||
| Current Ratio | 2.69 | ||
| Quick Ratio | 2.47 | ||
| Altman-Z | N/A |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)191.43%
Cap/Depr(5y)186.18%
Cap/Sales(3y)41.89%
Cap/Sales(5y)43.54%
Profit Quality(3y)52.95%
Profit Quality(5y)52.43%
High Growth Momentum
Growth
EPS 1Y (TTM)52.94%
EPS 3Y25.28%
EPS 5Y27.73%
EPS Q2Q%39.07%
EPS Next Y44.47%
EPS Next 2Y32.39%
EPS Next 3Y28.29%
EPS Next 5Y17.97%
Revenue 1Y (TTM)36.96%
Revenue growth 3Y22.17%
Revenue growth 5Y22.02%
Sales Q2Q%30.31%
Revenue Next Year31.16%
Revenue Next 2Y26.63%
Revenue Next 3Y24.64%
Revenue Next 5Y17.88%
EBIT growth 1Y55.37%
EBIT growth 3Y26.7%
EBIT growth 5Y28.77%
EBIT Next Year99.09%
EBIT Next 3Y43.43%
EBIT Next 5Y28.28%
FCF growth 1Y318.14%
FCF growth 3Y48.33%
FCF growth 5Y42.73%
OCF growth 1Y62.64%
OCF growth 3Y17.98%
OCF growth 5Y24.31%
TAIWAN SEMICONDUCTOR-SP ADR / TSM FAQ
Can you provide the ChartMill fundamental rating for TAIWAN SEMICONDUCTOR-SP ADR?
ChartMill assigns a fundamental rating of 6 / 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 44.47% in the next year.