TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis

NYSE:TSM • US8740391003

369.047 USD
+0.95 (+0.26%)
Last: Feb 13, 2026, 10:24 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Taking everything into account, TSM scores 6 out of 10 in our fundamental rating. TSM was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. While TSM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TSM is valued quite expensively, but it does show have an excellent growth rating. This makes TSM very considerable for growth investing!


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • Each year in the past 5 years TSM has been profitable.
  • In the past 5 years TSM always reported a positive cash flow from operatings.
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

  • Looking at the Return On Assets, with a value of 21.65%, TSM belongs to the top of the industry, outperforming 94.69% of the companies in the same industry.
  • The Return On Equity of TSM (31.70%) is better than 92.92% of its industry peers.
  • With an excellent Return On Invested Capital value of 25.03%, TSM belongs to the best of the industry, outperforming 96.46% 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 10.76%.
  • 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 has a Profit Margin of 45.10%. This is amongst the best in the industry. TSM outperforms 97.35% of its industry peers.
  • In the last couple of years the Profit Margin of TSM has grown nicely.
  • TSM has a better Operating Margin (50.83%) than 98.23% of its industry peers.
  • TSM's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 59.89%, TSM belongs to the top of the industry, outperforming 84.96% of the companies in the same industry.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. Health

2.1 Basic Checks

  • TSM has about the same amout of shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, TSM has about the same amount of shares outstanding.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 0.99, TSM is in the better half of the industry, outperforming 74.34% of the companies in the same industry.
  • A Debt/Equity ratio of 0.16 indicates that TSM is not too dependend on debt financing.
  • The Debt to Equity ratio of TSM (0.16) is comparable to the rest of the 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

  • TSM has a Current Ratio of 2.62. This indicates that TSM is financially healthy and has no problem in meeting its short term obligations.
  • TSM's Current ratio of 2.62 is in line compared to the rest of the industry. TSM outperforms 45.13% 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.
  • TSM has a Quick ratio (2.42) which is in line with its industry peers.
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

8

3. Growth

3.1 Past

  • TSM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.39%, which is quite impressive.
  • TSM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.10% yearly.
  • Looking at the last year, TSM shows a very strong growth in Revenue. The Revenue has grown by 31.61%.
  • Measured over the past years, TSM shows a very strong growth in Revenue. The Revenue has been growing by 23.25% on average per year.
EPS 1Y (TTM)46.39%
EPS 3Y19.11%
EPS 5Y27.1%
EPS Q2Q%34.95%
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.19% yearly.
  • The Revenue is expected to grow by 16.30% on average over the next years. This is quite good.
EPS Next Y32.95%
EPS Next 2Y27.87%
EPS Next 3Y23.53%
EPS Next 5Y14.19%
Revenue Next Year22.26%
Revenue Next 2Y21.51%
Revenue Next 3Y17.23%
Revenue Next 5Y16.3%

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.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
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

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Find the best growth stocksShow best growing peers

1

4. Valuation

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.
  • TSM's earnings are expected to grow with 23.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y27.87%
EPS Next 3Y23.53%

More info and screens

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

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.16%, TSM has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.53, TSM pays a better dividend. On top of this TSM pays more dividend than 84.96% of the companies listed in the same industry.
  • Compared to the average S&P500 Dividend Yield of 1.80, TSM is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.16%

5.2 History

  • The dividend of TSM is nicely growing with an annual growth rate of 12.47%!
  • 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)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

  • 27.17% of the earnings are spent on dividend by TSM. This is a low number and sustainable payout ratio.
  • The dividend of TSM is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP27.17%
EPS Next 2Y27.87%
EPS Next 3Y23.53%
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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TAIWAN SEMICONDUCTOR-SP ADR

NYSE:TSM (2/13/2026, 10:24:09 AM)

369.047

+0.95 (+0.26%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-15
Earnings (Next)04-15
Inst Owners36.14%
Inst Owner Change-0.72%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.91T
Revenue(TTM)3.81T
Net Income(TTM)1.72T
Analysts85.58
Price Target360.38 (-2.35%)
Short Float %0.47%
Short Ratio1.8
Dividend
Industry RankSector Rank
Dividend Yield 1.16%
Yearly DividendN/A
Dividend Growth(5Y)12.47%
DP27.17%
Div Incr Years2
Div Non Decr Years2
Ex-Date03-17
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.56%
Min EPS beat(2)5.16%
Max EPS beat(2)7.96%
EPS beat(4)4
Avg EPS beat(4)4.35%
Min EPS beat(4)0.61%
Max EPS beat(4)7.96%
EPS beat(8)7
Avg EPS beat(8)3.89%
EPS beat(12)11
Avg EPS beat(12)4.06%
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)17.68%
PT rev (3m)13.87%
EPS NQ rev (1m)22.18%
EPS NQ rev (3m)23.19%
EPS NY rev (1m)11.05%
EPS NY rev (3m)13.59%
Revenue NQ rev (1m)11.23%
Revenue NQ rev (3m)11.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.43%
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)46.39%
EPS 3Y19.11%
EPS 5Y27.1%
EPS Q2Q%34.95%
EPS Next Y32.95%
EPS Next 2Y27.87%
EPS Next 3Y23.53%
EPS Next 5Y14.19%
Revenue 1Y (TTM)31.61%
Revenue growth 3Y18.94%
Revenue growth 5Y23.25%
Sales Q2Q%20.45%
Revenue Next Year22.26%
Revenue Next 2Y21.51%
Revenue Next 3Y17.23%
Revenue Next 5Y16.3%
EBIT growth 1Y46.45%
EBIT growth 3Y19.97%
EBIT growth 5Y27.85%
EBIT Next Year70.8%
EBIT Next 3Y30.4%
EBIT Next 5Y24.69%
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 FAQ

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

ChartMill assigns a fundamental rating of 6 / 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 32.95% in the next year.