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

NYSE:TSM • US8740391003

Current stock price

341.76 USD
+2.72 (+0.8%)
At close:
338.4 USD
-3.36 (-0.98%)
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

  • Each year in the past 5 years TSM has been profitable.
  • TSM had a positive operating cash flow in each of the past 5 years.
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 Return On Assets of 21.65%. This is amongst the best in the industry. TSM outperforms 94.78% of its industry peers.
  • TSM's Return On Equity of 31.70% is amongst the best of the industry. TSM outperforms 93.04% of its industry peers.
  • With an excellent Return On Invested Capital value of 25.03%, TSM belongs to the best 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

  • TSM's Profit Margin of 45.10% is amongst the best of the industry. TSM outperforms 98.26% of its industry peers.
  • TSM's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 50.83%, TSM belongs to the best of the industry, outperforming 98.26% of the companies in the same industry.
  • 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 85.22% of its industry peers.
  • In the last couple of years the Gross Margin of TSM has grown nicely.
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

  • Compared to 1 year ago, TSM has about the same amount of shares outstanding.
  • TSM has about the same amout of shares outstanding than it did 5 years ago.
  • The debt/assets ratio for TSM has been reduced compared to a year ago.
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

  • The Debt to FCF ratio of TSM is 0.99, which is an excellent value as it means it would take TSM, only 0.99 years of fcf income to pay off all of its debts.
  • TSM's Debt to FCF ratio of 0.99 is fine compared to the rest of the industry. TSM outperforms 74.78% of its industry peers.
  • A Debt/Equity ratio of 0.16 indicates that TSM is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.16, TSM is in line with its industry, outperforming 50.43% of the companies in the same industry.
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.
  • The Current ratio of TSM (2.62) is worse than 60.00% of its industry peers.
  • TSM has a Quick Ratio of 2.42. This indicates that TSM is financially healthy and has no problem in meeting its short term obligations.
  • The Quick ratio of TSM (2.42) is comparable to the rest of the 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

9

3. TSM Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 46.42% over the past year.
  • The Earnings Per Share has been growing by 27.10% 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 31.61%.
  • The Revenue has been growing by 23.25% on average over the past years. This is a very strong growth!
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

  • The Earnings Per Share is expected to grow by 20.71% on average over the next years. This is a very strong growth
  • 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 Year32.07%
Revenue Next 2Y28.41%
Revenue Next 3Y26.6%
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

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

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. TSM Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.21%, 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 0.52. TSM pays more dividend than 86.09% of the companies in the same industry.
  • Compared to the average S&P500 Dividend Yield of 1.89, TSM is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.21%

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 (4/6/2026, 8:04:00 PM)

Premarket: 338.4 -3.36 (-0.98%)

341.76

+2.72 (+0.8%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-15
Earnings (Next)04-15
Inst Owners35.49%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner Change0%
Market Cap1.77T
Revenue(TTM)3.81T
Net Income(TTM)1.72T
Analysts84.65
Price Target387.29 (13.32%)
Short Float %0.43%
Short Ratio1.52
Dividend
Industry RankSector Rank
Dividend Yield 1.21%
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)0%
PT rev (3m)26.47%
EPS NQ rev (1m)2.06%
EPS NQ rev (3m)24.69%
EPS NY rev (1m)0%
EPS NY rev (3m)14.85%
Revenue NQ rev (1m)0.96%
Revenue NQ rev (3m)12.3%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)8.39%
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 Year32.07%
Revenue Next 2Y28.41%
Revenue Next 3Y26.6%
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.


How profitable is TAIWAN SEMICONDUCTOR-SP ADR (TSM) stock?

TAIWAN SEMICONDUCTOR-SP ADR (TSM) has a profitability rating of 9 / 10.


Is the dividend of TAIWAN SEMICONDUCTOR-SP ADR sustainable?

The dividend rating of TAIWAN SEMICONDUCTOR-SP ADR (TSM) is 6 / 10 and the dividend payout ratio is 27.17%.