TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis
NYSE:TSM - New York Stock Exchange, Inc. - US8740391003 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to TSM. TSM was compared to 109 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 valued quite expensive, but it does show an excellent growth. 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 (18.36%) than 91.74% of its industry peers.
Looking at the Return On Equity, with a value of 28.69%, TSM belongs to the top of the industry, outperforming 90.83% of the companies in the same industry.
TSM has a better Return On Invested Capital (21.81%) than 94.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TSM is significantly above the industry average of 11.32%.
The 3 year average ROIC (20.33%) for TSM is below the current ROIC(21.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.36% | ||
| ROE | 28.69% | ||
| ROIC | 21.81% |
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 (41.69%) is better than 96.33% of its industry peers.
TSM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 47.12%, TSM belongs to the best of the industry, outperforming 98.17% of the companies in the same industry.
TSM's Operating Margin has improved in the last couple of years.
The Gross Margin of TSM (57.41%) is better than 80.73% of its industry peers.
TSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.12% | ||
| PM (TTM) | 41.69% | ||
| GM | 57.41% |
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 1.12. This is a very positive value and a sign of high solvency as it would only need 1.12 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.12, TSM is doing good in the industry, outperforming 76.15% of the companies in the same industry.
TSM has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
TSM has a Debt to Equity ratio of 0.21. This is comparable to the rest of the industry: TSM outperforms 44.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.12 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
TSM has a Current Ratio of 2.39. This indicates that TSM is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TSM (2.39) is worse than 65.14% of its industry peers.
TSM has a Quick Ratio of 2.18. This indicates that TSM is financially healthy and has no problem in meeting its short term obligations.
TSM's Quick ratio of 2.18 is in line compared to the rest of the industry. TSM outperforms 51.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
TSM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.72%, which is quite impressive.
TSM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.73% yearly.
TSM shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.86%.
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)52.72%
EPS 3Y25.28%
EPS 5Y27.73%
EPS Q2Q%60.23%
Revenue 1Y (TTM)39.86%
Revenue growth 3Y22.17%
Revenue growth 5Y22.02%
Sales Q2Q%41.61%
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 16.80% yearly.
Based on estimates for the next years, TSM will show a quite strong growth in Revenue. The Revenue will grow by 15.37% on average per year.
EPS Next Y34.88%
EPS Next 2Y25.78%
EPS Next 3Y22.89%
EPS Next 5Y16.8%
Revenue Next Year27.51%
Revenue Next 2Y22.22%
Revenue Next 3Y20.92%
Revenue Next 5Y15.37%
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.
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 1.97%, TSM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.76, TSM pays a better dividend. On top of this TSM pays more dividend than 87.16% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, TSM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
5.2 History
The dividend of TSM is nicely growing with an annual growth rate of 6.96%!
TSM has paid a dividend for at least 10 years, which is a reliable track record.
TSM has decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.96%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
29.71% of the earnings are spent on dividend by TSM. This is a low number and sustainable payout ratio.
The dividend of TSM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP29.71%
EPS Next 2Y25.78%
EPS Next 3Y22.89%
NYSE:TSM (5/2/2025, 10:53:09 AM)
178.88
+6.16 (+3.57%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners36.98%
Inst Owner Change0.59%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap927.77B
Analysts84.74
Price Target165.59 (-7.43%)
Short Float %0.78%
Short Ratio2.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Yearly DividendN/A
Dividend Growth(5Y)6.96%
DP29.71%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.22%
Min EPS beat(2)-0.17%
Max EPS beat(2)0.61%
EPS beat(4)3
Avg EPS beat(4)2.86%
Min EPS beat(4)-0.17%
Max EPS beat(4)7.39%
EPS beat(8)7
Avg EPS beat(8)3.31%
EPS beat(12)11
Avg EPS beat(12)3.4%
EPS beat(16)13
Avg EPS beat(16)2.92%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)-0.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.47%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)0.41%
Revenue beat(8)1
Avg Revenue beat(8)-0.67%
Revenue beat(12)1
Avg Revenue beat(12)-1.15%
Revenue beat(16)2
Avg Revenue beat(16)-1.05%
PT rev (1m)-15.65%
PT rev (3m)-21.89%
EPS NQ rev (1m)3.96%
EPS NQ rev (3m)9.36%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)3.65%
Revenue NQ rev (1m)4.09%
Revenue NQ rev (3m)7.03%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)-0.32%
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 | 18.36% | ||
| ROE | 28.69% | ||
| ROCE | 25.82% | ||
| ROIC | 21.81% | ||
| ROICexc | 41.26% | ||
| ROICexgc | 41.26% | ||
| OM | 47.12% | ||
| PM (TTM) | 41.69% | ||
| GM | 57.41% | ||
| FCFM | 28.75% |
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 Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.12 | ||
| Debt/EBITDA | 0.44 | ||
| Cap/Depr | 163.85% | ||
| Cap/Sales | 35.42% | ||
| Interest Coverage | 75.95 | ||
| Cash Conversion | 93.35% | ||
| Profit Quality | 68.97% | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.18 | ||
| 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)52.72%
EPS 3Y25.28%
EPS 5Y27.73%
EPS Q2Q%60.23%
EPS Next Y34.88%
EPS Next 2Y25.78%
EPS Next 3Y22.89%
EPS Next 5Y16.8%
Revenue 1Y (TTM)39.86%
Revenue growth 3Y22.17%
Revenue growth 5Y22.02%
Sales Q2Q%41.61%
Revenue Next Year27.51%
Revenue Next 2Y22.22%
Revenue Next 3Y20.92%
Revenue Next 5Y15.37%
EBIT growth 1Y57.59%
EBIT growth 3Y26.7%
EBIT growth 5Y28.77%
EBIT Next Year93%
EBIT Next 3Y39.24%
EBIT Next 5Y25.4%
FCF growth 1Y82.82%
FCF growth 3Y48.33%
FCF growth 5Y42.73%
OCF growth 1Y24.13%
OCF growth 3Y17.98%
OCF growth 5Y24.31%