TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis
USA - NYSE:TSM - US8740391003 - ADR
293.18 USD
-0.46 (-0.16%)
TSM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 112 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 expensive, but it does show an excellent growth. 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.
Each year in the past 5 years TSM had a positive operating cash flow.
1.2 Ratios
TSM has a Return On Assets of 21.58%. This is amongst the best in the industry. TSM outperforms 93.75% of its industry peers.
TSM has a Return On Equity of 31.75%. This is amongst the best in the industry. TSM outperforms 91.96% of its industry peers.
With an excellent Return On Invested Capital value of 24.97%, TSM belongs to the best of the industry, outperforming 95.54% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TSM is significantly above the industry average of 11.04%.
The last Return On Invested Capital (24.97%) for TSM is above the 3 year average (20.33%), which is a sign of increasing profitability.
| 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 has a better Profit Margin (43.70%) than 96.43% of its industry peers.
In the last couple of years the Profit Margin of TSM has grown nicely.
With an excellent Operating Margin value of 49.48%, TSM belongs to the best of the industry, outperforming 98.21% of the companies in the same industry.
TSM's Operating Margin has improved in the last couple of years.
TSM has a better Gross Margin (58.98%) than 83.93% 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
TSM has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for TSM remains at a similar level compared to 5 years ago.
Compared to 1 year ago, TSM has an improved debt to assets ratio.
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 74.11% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that TSM is not too dependend on debt financing.
TSM's Debt to Equity ratio of 0.18 is in line compared to the rest of the industry. TSM outperforms 48.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.69 indicates that TSM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.69, TSM is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 2.47 indicates that TSM has no problem at all paying its short term obligations.
TSM has a Quick ratio (2.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.69 | ||
| Quick Ratio | 2.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.94% over the past year.
The Earnings Per Share has been growing by 27.73% on average over the past years. This is a very strong growth
The Revenue has grown by 36.96% in the past year. This is a very strong growth!
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
Based on estimates for the next years, TSM will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.23% on average per year.
TSM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.90% yearly.
EPS Next Y33.78%
EPS Next 2Y23.46%
EPS Next 3Y21.66%
EPS Next 5Y17.23%
Revenue Next Year27.54%
Revenue Next 2Y21.88%
Revenue Next 3Y21.21%
Revenue Next 5Y15.9%
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
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 21.66% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y23.46%
EPS Next 3Y21.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.26%, TSM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.14, TSM pays a better dividend. On top of this TSM pays more dividend than 84.82% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, TSM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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.
The dividend of TSM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.78%
EPS Next 2Y23.46%
EPS Next 3Y21.66%
NYSE:TSM (11/6/2025, 9:51:09 AM)
293.18
-0.46 (-0.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners36.31%
Inst Owner Change-0.56%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1520.58B
Revenue(TTM)3631.42B
Net Income(TTM)1586.82B
Analysts85.37
Price Target316.48 (7.95%)
Short Float %0.7%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly DividendN/A
Dividend Growth(5Y)6.96%
DP27.78%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)18.02%
PT rev (3m)28.74%
EPS NQ rev (1m)14.33%
EPS NQ rev (3m)17.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.81%
Revenue NQ rev (1m)7.36%
Revenue NQ rev (3m)9.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.83%
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 Y33.78%
EPS Next 2Y23.46%
EPS Next 3Y21.66%
EPS Next 5Y17.23%
Revenue 1Y (TTM)36.96%
Revenue growth 3Y22.17%
Revenue growth 5Y22.02%
Sales Q2Q%30.31%
Revenue Next Year27.54%
Revenue Next 2Y21.88%
Revenue Next 3Y21.21%
Revenue Next 5Y15.9%
EBIT growth 1Y55.37%
EBIT growth 3Y26.7%
EBIT growth 5Y28.77%
EBIT Next Year91.87%
EBIT Next 3Y36.87%
EBIT Next 5Y25.35%
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
What is the fundamental rating for TSM stock?
ChartMill assigns a fundamental rating of 6 / 10 to TSM.
What is the valuation status for TSM stock?
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.
What is the expected EPS growth for TAIWAN SEMICONDUCTOR-SP ADR (TSM) stock?
The Earnings per Share (EPS) of TAIWAN SEMICONDUCTOR-SP ADR (TSM) is expected to grow by 33.78% in the next year.