TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TSM - US8740391003 - ADR
342.4 USD
+0.76 (+0.22%)
342.659 USD
+0.26 (+0.08%)
Overall TSM gets a fundamental rating of 6 out of 10. We evaluated TSM against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. TSM scores excellent on profitability, but there are some minor concerns on its financial health. TSM is valued quite expensively, but it does show have an excellent growth rating. These ratings could make TSM a good candidate for growth investing.
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.
1.2 Ratios
- TSM's Return On Assets of 21.65% is amongst the best of the industry. TSM outperforms 94.69% of its industry peers.
- TSM has a better Return On Equity (31.70%) than 92.92% of its industry peers.
- With an excellent Return On Invested Capital value of 25.03%, TSM belongs to the best of the industry, outperforming 96.46% 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 10.75%.
- 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 Rank | Sector 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%
1.3 Margins
- Looking at the Profit Margin, with a value of 45.10%, TSM belongs to the top of the industry, outperforming 97.35% of the companies in the same industry.
- TSM's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 50.83%, TSM belongs to the top of the industry, outperforming 98.23% of the companies in the same industry.
- In the last couple of years the Operating Margin of TSM has grown nicely.
- The Gross Margin of TSM (59.89%) is better than 84.96% of its industry peers.
- In the last couple of years the Gross Margin of TSM has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- Compared to 1 year ago, TSM has about the same amount of shares outstanding.
- 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 0.99, which is an excellent value as it means it would take TSM, only 0.99 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 0.99, TSM is doing good in the industry, outperforming 76.11% of the companies in the same industry.
- TSM has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
- TSM's Debt to Equity ratio of 0.16 is in line compared to the rest of the industry. TSM outperforms 52.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
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 (2.62) which is comparable to the rest of the industry.
- A Quick Ratio of 2.42 indicates that TSM has no problem at all paying its short term obligations.
- TSM has a Quick ratio of 2.42. This is comparable to the rest of the industry: TSM outperforms 59.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 2.42 |
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 14.19% on average over the next years. This is quite good.
- The Revenue is expected to grow by 16.30% on average over the next years. This is quite good.
EPS Next Y32.95%
EPS Next 2Y27.87%
EPS Next 3Y23.53%
EPS Next 5Y14.19%
Revenue Next Year22.26%
Revenue Next 2Y21.51%
Revenue Next 3Y17.23%
Revenue Next 5Y16.3%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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
- The excellent profitability rating of TSM 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%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.18%, TSM has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.51, TSM pays a better dividend. On top of this TSM pays more dividend than 84.07% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.85, TSM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
- On average, the dividend of TSM grows each year by 12.47%, which is quite nice.
- 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
5.3 Sustainability
- TSM pays out 27.17% of its income as dividend. This is a sustainable payout ratio.
- TSM's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP27.17%
EPS Next 2Y27.87%
EPS Next 3Y23.53%
342.4
+0.76 (+0.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-15 2026-01-15/amc
Earnings (Next)04-15 2026-04-15/amc
Inst Owners36.14%
Inst Owner Change-0.03%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.78T
Revenue(TTM)3.81T
Net Income(TTM)1.72T
Analysts85.58
Price Target306.23 (-10.56%)
Short Float %0.52%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly DividendN/A
Dividend Growth(5Y)12.47%
DP27.17%
Div Incr Years2
Div Non Decr Years2
Ex-Date03-17 2026-03-17 (0.967804)
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)-1%
PT rev (3m)8.6%
EPS NQ rev (1m)0.98%
EPS NQ rev (3m)15.2%
EPS NY rev (1m)1.56%
EPS NY rev (3m)15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.65%
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)7.96%
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 | 21.65% | ||
| 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 Rank | Sector 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 5Y14.19%
Revenue 1Y (TTM)31.61%
Revenue growth 3Y18.94%
Revenue growth 5Y23.25%
Sales Q2Q%20.45%
Revenue Next Year22.26%
Revenue Next 2Y21.51%
Revenue Next 3Y17.23%
Revenue Next 5Y16.3%
EBIT growth 1Y46.45%
EBIT growth 3Y19.97%
EBIT growth 5Y27.85%
EBIT Next Year70.8%
EBIT Next 3Y30.4%
EBIT Next 5Y24.69%
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 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 32.95% in the next year.