TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis
NYSE:TSM - New York Stock Exchange, Inc. - US8740391003 - ADR - Currency: USD
TSM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 110 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. With these ratings, TSM could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
TSM had positive earnings in each of the past 5 years.
Each year in the past 5 years TSM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 18.36%, TSM belongs to the top of the industry, outperforming 91.82% of the companies in the same industry.
TSM's Return On Equity of 28.69% is amongst the best of the industry. TSM outperforms 90.91% of its industry peers.
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.
TSM had an Average Return On Invested Capital over the past 3 years of 20.33%. This is significantly above the industry average of 10.57%.
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
TSM has a better Profit Margin (41.69%) than 96.36% of its industry peers.
In the last couple of years the Profit Margin of TSM has grown nicely.
The Operating Margin of TSM (47.12%) is better than 98.18% of its industry peers.
In the last couple of years the Operating Margin of TSM has grown nicely.
Looking at the Gross Margin, with a value of 57.41%, TSM is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
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
TSM has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, TSM has about the same amount of shares outstanding.
TSM has a better debt/assets ratio than last year.
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.
With a decent Debt to FCF ratio value of 1.12, TSM is doing good in the industry, outperforming 75.45% of the companies in the same industry.
A Debt/Equity ratio of 0.21 indicates that TSM is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.21, TSM perfoms like the industry average, outperforming 46.36% of the companies in the same industry.
| 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.
With a Current ratio value of 2.39, TSM is not doing good in the industry: 66.36% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 2.18, TSM perfoms like the industry average, 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
The Earnings Per Share has grown by an impressive 52.72% 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 27.73% on average per year.
The Revenue has grown by 39.86% in the past year. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 18.06% on average over the next years. This is quite good.
The Revenue is expected to grow by 17.40% on average over the next years. This is quite good.
EPS Next Y34.88%
EPS Next 2Y25.78%
EPS Next 3Y22.89%
EPS Next 5Y18.06%
Revenue Next Year27.5%
Revenue Next 2Y22.17%
Revenue Next 3Y20.92%
Revenue Next 5Y17.4%
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
The excellent profitability rating of TSM 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
TSM has a Yearly Dividend Yield of 1.80%.
TSM's Dividend Yield is rather good when compared to the industry average which is at 2.61. TSM pays more dividend than 86.36% of the companies in the same industry.
TSM's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
5.2 History
The dividend of TSM is nicely growing with an annual growth rate of 6.96%!
TSM has paid a dividend for at least 10 years, which is 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
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 (6/12/2025, 3:45:10 PM)
215.214
+1.86 (+0.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners36.98%
Inst Owner Change3.83%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1116.21B
Analysts85.13
Price Target205.49 (-4.52%)
Short Float %0.62%
Short Ratio1.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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)24.1%
PT rev (3m)4.68%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)5.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.86%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)6.55%
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 5Y18.06%
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 5Y17.4%
EBIT growth 1Y57.59%
EBIT growth 3Y26.7%
EBIT growth 5Y28.77%
EBIT Next Year91.63%
EBIT Next 3Y37.36%
EBIT Next 5Y23.89%
FCF growth 1Y82.82%
FCF growth 3Y48.33%
FCF growth 5Y42.73%
OCF growth 1Y24.13%
OCF growth 3Y17.98%
OCF growth 5Y24.31%