TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis
NYSE:TSM - New York Stock Exchange, Inc. - US8740391003 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to TSM. TSM was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. TSM has an excellent profitability rating, but there are some minor concerns on its financial health. TSM is valued quite expensively, but it does show have an excellent growth rating. This makes TSM very considerable for growth investing!
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
TSM has a Return On Assets of 18.36%. This is amongst the best in the industry. TSM outperforms 91.82% of its industry peers.
Looking at the Return On Equity, with a value of 28.69%, TSM belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 21.81%, TSM belongs to the top of the industry, outperforming 95.45% 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 10.58%.
The 3 year average ROIC (20.33%) for TSM is below the current ROIC(21.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.36% | ||
| ROE | 28.69% | ||
| ROIC | 21.81% |
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
With an excellent Profit Margin value of 41.69%, TSM belongs to the best of the industry, outperforming 96.36% of the companies in the same industry.
In the last couple of years the Profit Margin of TSM has grown nicely.
TSM has a better Operating Margin (47.12%) than 98.18% of its industry peers.
TSM's Operating Margin has improved in the last couple of years.
TSM's Gross Margin of 57.41% is fine compared to the rest of the industry. TSM outperforms 80.00% of its industry peers.
TSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.12% | ||
| PM (TTM) | 41.69% | ||
| GM | 57.41% |
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
Compared to 1 year ago, TSM has about the same amount of shares outstanding.
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 1.12. This is a very positive value and a sign of high solvency as it would only need 1.12 years to pay back of all of its debts.
TSM's Debt to FCF ratio of 1.12 is fine compared to the rest of the industry. TSM outperforms 75.45% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that TSM is not too dependend on debt financing.
TSM's Debt to Equity ratio of 0.21 is in line compared to the rest of the industry. TSM outperforms 46.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.12 | ||
| 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 66.36% of the companies in the same industry.
TSM has a Quick Ratio of 2.18. 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 2.18, TSM is in line with its industry, outperforming 51.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
TSM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.72%, which is quite impressive.
TSM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.73% yearly.
TSM shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.86%.
TSM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.02% yearly.
EPS 1Y (TTM)52.72%
EPS 3Y25.28%
EPS 5Y27.73%
EPS Q2Q%60.23%
Revenue 1Y (TTM)39.86%
Revenue growth 3Y22.17%
Revenue growth 5Y22.02%
Sales Q2Q%41.61%
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 17.59% yearly.
TSM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.94% yearly.
EPS Next Y34.88%
EPS Next 2Y25.78%
EPS Next 3Y22.89%
EPS Next 5Y17.59%
Revenue Next Year27.5%
Revenue Next 2Y22.17%
Revenue Next 3Y20.92%
Revenue Next 5Y16.94%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
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 22.89% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y25.78%
EPS Next 3Y22.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.67%, TSM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.28, TSM pays a better dividend. On top of this TSM pays more dividend than 87.27% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.42, TSM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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.
TSM has decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.96%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
29.71% 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.
DP29.71%
EPS Next 2Y25.78%
EPS Next 3Y22.89%
NYSE:TSM (7/3/2025, 9:46:09 AM)
234.972
+1.37 (+0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners34.52%
Inst Owner Change3.81%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1218.69B
Analysts85.13
Price Target223.99 (-4.67%)
Short Float %0.54%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Yearly DividendN/A
Dividend Growth(5Y)6.96%
DP29.71%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.22%
Min EPS beat(2)-0.17%
Max EPS beat(2)0.61%
EPS beat(4)3
Avg EPS beat(4)2.86%
Min EPS beat(4)-0.17%
Max EPS beat(4)7.39%
EPS beat(8)7
Avg EPS beat(8)3.31%
EPS beat(12)11
Avg EPS beat(12)3.4%
EPS beat(16)13
Avg EPS beat(16)2.92%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)-0.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.47%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)0.41%
Revenue beat(8)1
Avg Revenue beat(8)-0.67%
Revenue beat(12)1
Avg Revenue beat(12)-1.15%
Revenue beat(16)2
Avg Revenue beat(16)-1.05%
PT rev (1m)18.04%
PT rev (3m)15.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.58%
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
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.36% | ||
| ROE | 28.69% | ||
| ROCE | 25.82% | ||
| ROIC | 21.81% | ||
| ROICexc | 41.26% | ||
| ROICexgc | 41.26% | ||
| OM | 47.12% | ||
| PM (TTM) | 41.69% | ||
| GM | 57.41% | ||
| FCFM | 28.75% |
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%
ROICexcg growth 3Y9.25%
ROICexcg 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-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.12 | ||
| Debt/EBITDA | 0.44 | ||
| Cap/Depr | 163.85% | ||
| Cap/Sales | 35.42% | ||
| Interest Coverage | 75.95 | ||
| Cash Conversion | 93.35% | ||
| Profit Quality | 68.97% | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.18 | ||
| Altman-Z | N/A |
F-Score7
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)52.72%
EPS 3Y25.28%
EPS 5Y27.73%
EPS Q2Q%60.23%
EPS Next Y34.88%
EPS Next 2Y25.78%
EPS Next 3Y22.89%
EPS Next 5Y17.59%
Revenue 1Y (TTM)39.86%
Revenue growth 3Y22.17%
Revenue growth 5Y22.02%
Sales Q2Q%41.61%
Revenue Next Year27.5%
Revenue Next 2Y22.17%
Revenue Next 3Y20.92%
Revenue Next 5Y16.94%
EBIT growth 1Y57.59%
EBIT growth 3Y26.7%
EBIT growth 5Y28.77%
EBIT Next Year91.63%
EBIT Next 3Y37.36%
EBIT Next 5Y23.4%
FCF growth 1Y82.82%
FCF growth 3Y48.33%
FCF growth 5Y42.73%
OCF growth 1Y24.13%
OCF growth 3Y17.98%
OCF growth 5Y24.31%