TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis
NYSE:TSM - New York Stock Exchange, Inc. - US8740391003 - ADR - Currency: USD
Overall TSM gets a fundamental rating of 6 out of 10. We evaluated TSM against 110 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 expensively, but it does show have an excellent growth rating. With these ratings, TSM could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past 5 years TSM has always been profitable.
In the past 5 years TSM always reported a positive cash flow from operatings.
1.2 Ratios
TSM has a better Return On Assets (20.84%) than 93.64% of its industry peers.
With an excellent Return On Equity value of 31.87%, TSM belongs to the best of the industry, outperforming 91.82% of the companies in the same industry.
TSM has a Return On Invested Capital of 24.87%. This is amongst the best in the industry. TSM outperforms 95.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSM is significantly above the industry average of 10.68%.
The last Return On Invested Capital (24.87%) for TSM is above the 3 year average (20.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.84% | ||
| ROE | 31.87% | ||
| ROIC | 24.87% |
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
With an excellent Profit Margin value of 42.92%, TSM belongs to the best 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.
Looking at the Operating Margin, with a value of 48.72%, TSM belongs to the top of the industry, outperforming 98.18% 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 (58.58%) than 82.73% of its industry peers.
TSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.72% | ||
| PM (TTM) | 42.92% | ||
| GM | 58.58% |
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
The number of shares outstanding for TSM remains at a similar level compared to 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
The Debt to FCF ratio of TSM is 1.01, which is an excellent value as it means it would take TSM, only 1.01 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.01, TSM is doing good in the industry, outperforming 76.36% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that TSM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, TSM is in line with its industry, outperforming 46.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
TSM has a Current Ratio of 2.37. This indicates that TSM is financially healthy and has no problem in meeting its short term obligations.
TSM's Current ratio of 2.37 is on the low side compared to the rest of the industry. TSM is outperformed by 66.36% of its industry peers.
A Quick Ratio of 2.15 indicates that TSM has no problem at all paying its short term obligations.
TSM has a Quick ratio of 2.15. This is comparable to the rest of the industry: TSM outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 58.08% 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 39.48% 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)58.08%
EPS 3Y25.28%
EPS 5Y27.73%
EPS Q2Q%60.7%
Revenue 1Y (TTM)39.48%
Revenue growth 3Y22.17%
Revenue growth 5Y22.02%
Sales Q2Q%38.65%
3.2 Future
The Earnings Per Share is expected to grow by 17.59% 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 16.94% yearly.
EPS Next Y34.88%
EPS Next 2Y25.78%
EPS Next 3Y22.89%
EPS Next 5Y17.59%
Revenue Next Year27.5%
Revenue Next 2Y22.17%
Revenue Next 3Y20.92%
Revenue Next 5Y16.94%
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.
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
With a Yearly Dividend Yield of 1.57%, 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 2.28. TSM pays more dividend than 84.55% of the companies in the same industry.
TSM's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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 28.42% 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.
DP28.42%
EPS Next 2Y25.78%
EPS Next 3Y22.89%
241.33
-1.42 (-0.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners34.52%
Inst Owner Change-0.4%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1251.66B
Analysts85.13
Price Target245.82 (1.86%)
Short Float %0.56%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
Yearly DividendN/A
Dividend Growth(5Y)6.96%
DP28.42%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.13%
Min EPS beat(2)0.61%
Max EPS beat(2)3.66%
EPS beat(4)3
Avg EPS beat(4)2.87%
Min EPS beat(4)-0.17%
Max EPS beat(4)7.39%
EPS beat(8)7
Avg EPS beat(8)3.68%
EPS beat(12)11
Avg EPS beat(12)3.27%
EPS beat(16)14
Avg EPS beat(16)3.35%
Revenue beat(2)0
Avg Revenue beat(2)-1.43%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)-1.39%
Revenue beat(4)0
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)-0.1%
Revenue beat(8)1
Avg Revenue beat(8)-0.65%
Revenue beat(12)1
Avg Revenue beat(12)-1.26%
Revenue beat(16)2
Avg Revenue beat(16)-1.02%
PT rev (1m)9.75%
PT rev (3m)48.45%
EPS NQ rev (1m)-3.88%
EPS NQ rev (3m)-3.88%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.89%
Revenue NQ rev (3m)-1.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
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 | 20.84% | ||
| ROE | 31.87% | ||
| ROCE | 29.44% | ||
| ROIC | 24.87% | ||
| ROICexc | 46.74% | ||
| ROICexgc | 46.74% | ||
| OM | 48.72% | ||
| PM (TTM) | 42.92% | ||
| GM | 58.58% | ||
| FCFM | 27.46% |
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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.01 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 171.12% | ||
| Cap/Sales | 35.31% | ||
| Interest Coverage | 82.56 | ||
| Cash Conversion | 90.51% | ||
| Profit Quality | 63.98% | ||
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.15 | ||
| 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)58.08%
EPS 3Y25.28%
EPS 5Y27.73%
EPS Q2Q%60.7%
EPS Next Y34.88%
EPS Next 2Y25.78%
EPS Next 3Y22.89%
EPS Next 5Y17.59%
Revenue 1Y (TTM)39.48%
Revenue growth 3Y22.17%
Revenue growth 5Y22.02%
Sales Q2Q%38.65%
Revenue Next Year27.5%
Revenue Next 2Y22.17%
Revenue Next 3Y20.92%
Revenue Next 5Y16.94%
EBIT growth 1Y61.84%
EBIT growth 3Y26.7%
EBIT growth 5Y28.77%
EBIT Next Year91.63%
EBIT Next 3Y37.36%
EBIT Next 5Y23.4%
FCF growth 1Y221.1%
FCF growth 3Y48.33%
FCF growth 5Y42.73%
OCF growth 1Y47.02%
OCF growth 3Y17.98%
OCF growth 5Y24.31%