TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis
NYSE:TSM - New York Stock Exchange, Inc. - US8740391003 - ADR - Currency: USD
Taking everything into account, TSM scores 6 out of 10 in our fundamental rating. TSM was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. While TSM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TSM shows excellent growth, but is valued quite expensive already. 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.
The Return On Equity of TSM (28.69%) is better than 90.91% of its industry peers.
The Return On Invested Capital of TSM (21.81%) is better than 94.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TSM is significantly above the industry average of 11.17%.
The last Return On Invested Capital (21.81%) for TSM is above the 3 year average (20.33%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 41.69%, TSM belongs to the top of the industry, outperforming 96.36% of the companies in the same industry.
TSM's Profit Margin has improved in the last couple of years.
TSM has a Operating Margin of 47.12%. This is amongst the best in the industry. TSM outperforms 98.18% of its industry peers.
In the last couple of years the Operating Margin of TSM has grown nicely.
TSM has a Gross Margin of 57.41%. This is amongst the best in the industry. TSM outperforms 80.91% 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
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.
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.
The Debt to FCF ratio of TSM (1.12) is better than 75.45% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that TSM is not too dependend on debt financing.
TSM has a Debt to Equity ratio (0.21) which is comparable to the rest of the 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.
TSM has a worse Current ratio (2.39) than 64.55% of its industry peers.
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
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.
The Earnings Per Share has been growing by 27.73% on average over the past years. This is a very strong growth
Looking at the last year, TSM shows a very strong growth in Revenue. 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 16.80% yearly.
Based on estimates for the next years, TSM will show a quite strong growth in Revenue. The Revenue will grow by 15.37% on average per year.
EPS Next Y34.88%
EPS Next 2Y25.78%
EPS Next 3Y22.89%
EPS Next 5Y16.8%
Revenue Next Year27.5%
Revenue Next 2Y22.17%
Revenue Next 3Y20.92%
Revenue Next 5Y15.37%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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.
TSM's earnings are expected to grow with 22.89% in the coming years. This may justify a more expensive valuation.
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 1.81%.
Compared to an average industry Dividend Yield of 2.41, 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 2.36, TSM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
On average, the dividend of TSM grows each year by 6.96%, which is quite nice.
TSM has paid a dividend for at least 10 years, which is 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
TSM pays out 29.71% 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.
DP29.71%
EPS Next 2Y25.78%
EPS Next 3Y22.89%
196.19
+4.43 (+2.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners36.98%
Inst Owner Change3.79%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1017.55B
Analysts85.13
Price Target189.76 (-3.28%)
Short Float %0.66%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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)3.29%
PT rev (3m)-7.59%
EPS NQ rev (1m)0.71%
EPS NQ rev (3m)5.23%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.66%
Revenue NQ rev (1m)1.8%
Revenue NQ rev (3m)6.21%
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-0.33%
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 5Y16.8%
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 5Y15.37%
EBIT growth 1Y57.59%
EBIT growth 3Y26.7%
EBIT growth 5Y28.77%
EBIT Next Year93%
EBIT Next 3Y39.24%
EBIT Next 5Y25.4%
FCF growth 1Y82.82%
FCF growth 3Y48.33%
FCF growth 5Y42.73%
OCF growth 1Y24.13%
OCF growth 3Y17.98%
OCF growth 5Y24.31%