TAIWAN SEMICONDUCTOR-SP ADR (TSM) Fundamental Analysis & Valuation

NYSE:TSM • US8740391003

Current stock price

326.11 USD
-21.64 (-6.22%)
At close:
326.8 USD
+0.69 (+0.21%)
Pre-Market:

This TSM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. TSM Profitability Analysis

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.
TSM Yearly Net Income VS EBIT VS OCF VS FCFTSM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500B 1T 1.5T 2T

1.2 Ratios

  • TSM has a better Return On Assets (21.65%) than 94.78% of its industry peers.
  • The Return On Equity of TSM (31.70%) is better than 93.04% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 25.03%, TSM belongs to the top of the industry, outperforming 96.52% 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 10.70%.
  • 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 RankSector 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%
TSM Yearly ROA, ROE, ROICTSM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 45.10%, TSM belongs to the top of the industry, outperforming 98.26% of the companies in the same industry.
  • In the last couple of years the Profit Margin of TSM has grown nicely.
  • TSM has a Operating Margin of 50.83%. This is amongst the best in the industry. TSM outperforms 98.26% of its industry peers.
  • In the last couple of years the Operating Margin of TSM has grown nicely.
  • TSM has a Gross Margin of 59.89%. This is amongst the best in the industry. TSM outperforms 86.09% of its industry peers.
  • TSM's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
TSM Yearly Profit, Operating, Gross MarginsTSM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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5

2. TSM Health Analysis

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.
  • TSM has a better debt/assets ratio than last year.
TSM Yearly Shares OutstandingTSM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B
TSM Yearly Total Debt VS Total AssetsTSM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2T 4T 6T

2.2 Solvency

  • TSM has a debt to FCF ratio of 0.99. This is a very positive value and a sign of high solvency as it would only need 0.99 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.99, TSM is in the better half of the industry, outperforming 73.91% 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 has a Debt to Equity ratio of 0.16. This is comparable to the rest of the industry: TSM outperforms 49.57% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 0.99
Altman-Z N/A
ROIC/WACCN/A
WACCN/A
TSM Yearly LT Debt VS Equity VS FCFTSM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1T 2T 3T 4T 5T

2.3 Liquidity

  • A Current Ratio of 2.62 indicates that TSM has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.62, TSM is in line with its industry, outperforming 41.74% of the companies in the same industry.
  • A Quick Ratio of 2.42 indicates that TSM has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 2.42, TSM is in line with its industry, outperforming 58.26% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.62
Quick Ratio 2.42
TSM Yearly Current Assets VS Current LiabilitesTSM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1T 2T 3T

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9

3. TSM Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 46.42% over the past year.
  • TSM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.10% yearly.
  • The Revenue has grown by 31.61% 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 23.25% yearly.
EPS 1Y (TTM)46.42%
EPS 3Y19.11%
EPS 5Y27.1%
EPS Q2Q%35.02%
Revenue 1Y (TTM)31.61%
Revenue growth 3Y18.94%
Revenue growth 5Y23.25%
Sales Q2Q%20.45%

3.2 Future

  • TSM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.71% yearly.
  • TSM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.00% yearly.
EPS Next Y37.49%
EPS Next 2Y30.37%
EPS Next 3Y27.45%
EPS Next 5Y20.71%
Revenue Next Year31.45%
Revenue Next 2Y27.77%
Revenue Next 3Y26.05%
Revenue Next 5Y21%

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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
TSM Yearly Revenue VS EstimatesTSM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2T 4T 6T 8T 10T
TSM Yearly EPS VS EstimatesTSM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 200 400 600 800

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1

4. TSM Valuation Analysis

4.1 Price/Earnings Ratio

Industry RankSector Rank
PE N/A
Fwd PE N/A
TSM Price Earnings VS Forward Price EarningsTSM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
TSM Per share dataTSM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share

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 27.45% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.37%
EPS Next 3Y27.45%

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6

5. TSM Dividend Analysis

5.1 Amount

  • TSM has a Yearly Dividend Yield of 1.19%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.50, TSM pays a better dividend. On top of this TSM pays more dividend than 86.09% of the companies listed in the same industry.
  • TSM's Dividend Yield is slightly below the S&P500 average, which is at 1.90.
Industry RankSector Rank
Dividend Yield 1.19%

5.2 History

  • On average, the dividend of TSM grows each year by 12.47%, which is quite nice.
  • 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)12.47%
Div Incr Years2
Div Non Decr Years2
TSM Yearly Dividends per shareTSM Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • TSM pays out 27.17% 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.
DP27.17%
EPS Next 2Y30.37%
EPS Next 3Y27.45%
TSM Yearly Income VS Free CF VS DividendTSM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500B 1T 1.5T
TSM Dividend Payout.TSM Dividend Payout, showing the Payout Ratio.TSM Dividend Payout.PayoutRetained Earnings

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TSM Fundamentals: All Metrics, Ratios and Statistics

TAIWAN SEMICONDUCTOR-SP ADR

NYSE:TSM (3/26/2026, 8:04:00 PM)

Premarket: 326.8 +0.69 (+0.21%)

326.11

-21.64 (-6.22%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-15
Earnings (Next)04-15
Inst Owners35.49%
Inst Owner Change-2.35%
Ins OwnersN/A
Ins Owner Change0%
Market Cap1.69T
Revenue(TTM)3.81T
Net Income(TTM)1.72T
Analysts84.65
Price Target387.29 (18.76%)
Short Float %0.42%
Short Ratio1.43
Dividend
Industry RankSector Rank
Dividend Yield 1.19%
Yearly DividendN/A
Dividend Growth(5Y)12.47%
DP27.17%
Div Incr Years2
Div Non Decr Years2
Ex-Date06-11
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.59%
Min EPS beat(2)5.21%
Max EPS beat(2)7.96%
EPS beat(4)4
Avg EPS beat(4)4.36%
Min EPS beat(4)0.61%
Max EPS beat(4)7.96%
EPS beat(8)7
Avg EPS beat(8)3.9%
EPS beat(12)11
Avg EPS beat(12)4.07%
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)7.47%
PT rev (3m)25.2%
EPS NQ rev (1m)1.4%
EPS NQ rev (3m)25.1%
EPS NY rev (1m)3.43%
EPS NY rev (3m)16.64%
Revenue NQ rev (1m)0.64%
Revenue NQ rev (3m)11.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)8.92%
Valuation
Industry RankSector 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 RankSector 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 RankSector 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)46.42%
EPS 3Y19.11%
EPS 5Y27.1%
EPS Q2Q%35.02%
EPS Next Y37.49%
EPS Next 2Y30.37%
EPS Next 3Y27.45%
EPS Next 5Y20.71%
Revenue 1Y (TTM)31.61%
Revenue growth 3Y18.94%
Revenue growth 5Y23.25%
Sales Q2Q%20.45%
Revenue Next Year31.45%
Revenue Next 2Y27.77%
Revenue Next 3Y26.05%
Revenue Next 5Y21%
EBIT growth 1Y46.45%
EBIT growth 3Y19.97%
EBIT growth 5Y27.85%
EBIT Next Year86.92%
EBIT Next 3Y40.31%
EBIT Next 5Y29.62%
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 Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for TAIWAN SEMICONDUCTOR-SP ADR?

ChartMill assigns a fundamental rating of 7 / 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 37.49% in the next year.