TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis
USA - NYSE:TSM - US8740391003 - ADR
300.43 USD
-2.79 (-0.92%)
299.61 USD
-0.82 (-0.27%)
We assign a fundamental rating of 6 out of 10 to TSM. TSM was compared to 112 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 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
Each year in the past 5 years TSM has been profitable.
Each year in the past 5 years TSM had a positive operating cash flow.
1.2 Ratios
TSM has a better Return On Assets (21.58%) than 93.75% of its industry peers.
Looking at the Return On Equity, with a value of 31.75%, TSM belongs to the top of the industry, outperforming 91.96% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 24.97%, TSM belongs to the top of the industry, outperforming 95.54% 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 11.04%.
The 3 year average ROIC (20.33%) for TSM is below the current ROIC(24.97%), indicating increased profibility in the last year.
| 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.
TSM's Profit Margin has improved in the last couple of years.
The Operating Margin of TSM (49.48%) is better than 98.21% 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 58.98%, TSM belongs to the top of the industry, outperforming 83.93% of the companies in the same industry.
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.
TSM has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, TSM has an improved debt to assets ratio.
2.2 Solvency
TSM has a debt to FCF ratio of 1.08. This is a very positive value and a sign of high solvency as it would only need 1.08 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.08, TSM is doing good in the industry, outperforming 74.11% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that TSM is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.18, TSM perfoms like the industry average, outperforming 47.32% of the companies in the same industry.
| 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.
TSM has a Current ratio (2.69) which is comparable to the rest of the industry.
TSM has a Quick Ratio of 2.47. This indicates that TSM is financially healthy and has no problem in meeting its short term obligations.
TSM's Quick ratio of 2.47 is in line compared to the rest of the industry. TSM outperforms 59.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.69 | ||
| Quick Ratio | 2.47 |
3. Growth
3.1 Past
TSM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.94%, which is quite impressive.
TSM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.73% yearly.
TSM shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.96%.
The Revenue has been growing by 22.02% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 17.23% on average over the next years. This is quite good.
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
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 21.66% in the coming years. This may justify a more expensive valuation.
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.
TSM's Dividend Yield is rather good when compared to the industry average which is at 2.14. TSM pays more dividend than 84.82% of the companies in the same industry.
With a Dividend Yield of 1.26, TSM pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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.
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%
300.43
-2.79 (-0.92%)
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 Cap1558.19B
Revenue(TTM)3631.42B
Net Income(TTM)1586.82B
Analysts85.37
Price Target316.48 (5.34%)
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.