TAIWAN SEMICONDUCTOR-SP ADR (TSM)
US8740391003 - ADR
We assign a fundamental rating of 5 out of 10 to TSM. TSM was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. TSM has an excellent profitability rating, but there are some minor concerns on its financial health. TSM is quite expensive at the moment. It does show a decent growth rate.
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's Return On Assets of 15.16% is amongst the best of the industry. TSM outperforms 86.79% of its industry peers.
With an excellent Return On Equity value of 24.24%, TSM belongs to the best of the industry, outperforming 84.91% of the companies in the same industry.
TSM's Return On Invested Capital of 17.40% is amongst the best of the industry. TSM outperforms 88.68% of its industry peers.
TSM had an Average Return On Invested Capital over the past 3 years of 20.00%. This is significantly above the industry average of 11.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.16% | ||
| ROE | 24.24% | ||
| ROIC | 17.4% |
ROA(3y)17.21%
ROA(5y)17.13%
ROE(3y)28.75%
ROE(5y)27.11%
ROIC(3y)20%
ROIC(5y)20.06%
1.3 Margins
Looking at the Profit Margin, with a value of 38.79%, TSM belongs to the top of the industry, outperforming 97.17% of the companies in the same industry.
In the last couple of years the Profit Margin of TSM has grown nicely.
TSM's Operating Margin of 42.63% is amongst the best of the industry. TSM outperforms 98.11% of its industry peers.
TSM's Operating Margin has improved in the last couple of years.
The Gross Margin of TSM (54.36%) is better than 68.87% of its industry peers.
TSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.63% | ||
| PM (TTM) | 38.79% | ||
| GM | 54.36% |
OM growth 3Y0.24%
OM growth 5Y2.69%
PM growth 3Y0.1%
PM growth 5Y2.64%
GM growth 3Y0.78%
GM growth 5Y2.4%
2. Health
2.1 Basic Checks
TSM has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for TSM remains at a similar level compared to 5 years ago.
The debt/assets ratio for TSM has been reduced compared to a year ago.
2.2 Solvency
TSM has a debt to FCF ratio of 3.35. This is a good value and a sign of high solvency as TSM would need 3.35 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.35, TSM is in the better half of the industry, outperforming 62.26% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that TSM is not too dependend on debt financing.
The Debt to Equity ratio of TSM (0.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.35 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.40 indicates that TSM has no problem at all paying its short term obligations.
The Current ratio of TSM (2.40) is worse than 63.21% of its industry peers.
TSM has a Quick Ratio of 2.13. This indicates that TSM is financially healthy and has no problem in meeting its short term obligations.
TSM has a Quick ratio of 2.13. This is comparable to the rest of the industry: TSM outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 2.13 |
3. Growth
3.1 Past
TSM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.50%.
The Earnings Per Share has been growing by 19.00% on average over the past years. This is quite good.
The Revenue has decreased by -4.51% in the past year.
The Revenue has been growing by 15.95% on average over the past years. This is quite good.
EPS 1Y (TTM)-17.5%
EPS 3Y17.43%
EPS 5Y19%
EPS growth Q2Q-19.28%
Revenue 1Y (TTM)-4.51%
Revenue growth 3Y17.3%
Revenue growth 5Y15.95%
Revenue growth Q2Q0%
3.2 Future
Based on estimates for the next years, TSM will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.94% on average per year.
Based on estimates for the next years, TSM will show a quite strong growth in Revenue. The Revenue will grow by 12.70% on average per year.
EPS Next Y21.29%
EPS Next 2Y22.57%
EPS Next 3Y20.04%
EPS Next 5Y10.94%
Revenue Next Year23.84%
Revenue Next 2Y21.59%
Revenue Next 3Y14.29%
Revenue Next 5Y12.7%
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
TSM has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TSM's earnings are expected to grow with 20.04% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.57%
EPS Next 3Y20.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.75%, 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 2.09. TSM pays more dividend than 87.74% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.45, TSM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
On average, the dividend of TSM grows each year by 7.06%, which is quite nice.
TSM has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)7.06%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TSM pays out 34.79% 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.
DP34.79%
EPS Next 2Y22.57%
EPS Next 3Y20.04%
TAIWAN SEMICONDUCTOR-SP ADR
NYSE:TSM (4/23/2024, 7:04:00 PM)
Premarket: 135 +1.57 (+1.18%)133.43
+3.68 (+2.84%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap692.10B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.16% | ||
| ROE | 24.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 42.63% | ||
| PM (TTM) | 38.79% | ||
| GM | 54.36% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.4 | ||
| Quick Ratio | 2.13 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-17.5%
EPS 3Y17.43%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.51%
Revenue growth 3Y17.3%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y