TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis
USA - NYSE:TSM - US8740391003 - ADR
284.18 USD
-5.06 (-1.75%)
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 shows excellent growth, but is valued quite expensive already. These ratings could make TSM a good candidate for growth investing.
1. Profitability
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.
1.2 Ratios
TSM has a Return On Assets of 21.58%. This is amongst the best in the industry. TSM outperforms 93.75% of its industry peers.
The Return On Equity of TSM (31.75%) is better than 92.86% of its industry peers.
TSM's Return On Invested Capital of 24.97% is amongst the best of the industry. TSM outperforms 95.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSM is significantly above the industry average of 11.05%.
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
The Profit Margin of TSM (43.70%) is better than 96.43% of its industry peers.
In the last couple of years the Profit Margin of TSM has grown nicely.
TSM has a Operating Margin of 49.48%. This is amongst the best in the industry. TSM outperforms 98.21% of its industry peers.
In the last couple of years the Operating Margin of TSM has grown nicely.
TSM has a Gross Margin of 58.98%. This is amongst the best in the industry. TSM outperforms 83.93% of its industry peers.
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.
TSM has a better Debt to FCF ratio (1.08) than 74.11% of its industry peers.
TSM has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
TSM has a Debt to Equity ratio (0.18) which is in line with its industry peers.
| 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.
Looking at the Current ratio, with a value of 2.69, TSM is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 2.47 indicates that TSM has no problem at all paying its short term obligations.
TSM has a Quick ratio (2.47) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.69 | ||
| Quick Ratio | 2.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.94% over the past year.
Measured over the past years, TSM shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.73% on average per year.
The Revenue has grown by 36.96% 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 22.02% yearly.
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
TSM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.23% yearly.
The Revenue is expected to grow by 15.90% on average over the next years. This is quite good.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 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.
Compared to an average industry Dividend Yield of 2.14, TSM pays a better dividend. On top of this TSM pays more dividend than 83.93% of the companies listed in the same industry.
With a Dividend Yield of 1.26, TSM pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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 27.78% of its income as dividend. This is a sustainable payout ratio.
TSM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27.78%
EPS Next 2Y23.46%
EPS Next 3Y21.66%
NYSE:TSM (11/7/2025, 9:56:09 AM)
284.18
-5.06 (-1.75%)
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 Cap1.47T
Revenue(TTM)3.63T
Net Income(TTM)1.59T
Analysts85.37
Price Target316.48 (11.37%)
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.