TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TSM - US8740391003 - ADR
291.51 USD
+1.55 (+0.53%)
291.77 USD
+0.26 (+0.09%)
Taking everything into account, TSM scores 6 out of 10 in our fundamental rating. 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 is valued quite expensively, but it does show have an excellent growth rating. These ratings could make TSM a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
Each year in the past 5 years TSM has been profitable.
TSM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TSM (21.58%) is better than 94.64% of its industry peers.
With an excellent Return On Equity value of 31.75%, TSM belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
With an excellent Return On Invested Capital value of 24.97%, TSM belongs to the best of the industry, outperforming 95.54% of the companies in the same industry.
TSM had an Average Return On Invested Capital over the past 3 years of 20.33%. This is significantly above the industry average of 10.76%.
The last Return On Invested Capital (24.97%) for TSM is above the 3 year average (20.33%), which is a sign of increasing profitability.
| 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
TSM has a better Profit Margin (43.70%) than 97.32% 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.
TSM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 58.98%, TSM belongs to the best of the industry, outperforming 83.93% of the companies in the same industry.
TSM's Gross Margin has improved in the last couple of years.
| 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
Compared to 1 year ago, TSM has about the same amount of shares outstanding.
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 1.08, which is an excellent value as it means it would take TSM, only 1.08 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.08, TSM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that TSM is not too dependend on debt financing.
TSM has a Debt to Equity ratio of 0.18. This is comparable to the rest of the industry: TSM outperforms 49.11% of 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.
The Current ratio of TSM (2.69) is comparable to the rest of the 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 of 2.47. This is comparable to the rest of the industry: TSM outperforms 58.93% of its industry peers.
| 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.
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 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
Based on estimates for the next years, TSM will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.97% 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 17.88% on average per year.
EPS Next Y42.73%
EPS Next 2Y30.91%
EPS Next 3Y27.45%
EPS Next 5Y17.97%
Revenue Next Year30.47%
Revenue Next 2Y25.74%
Revenue Next 3Y24.08%
Revenue Next 5Y17.88%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 27.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.91%
EPS Next 3Y27.45%
5. Dividend
5.1 Amount
TSM has a Yearly Dividend Yield of 1.43%.
TSM's Dividend Yield is rather good when compared to the industry average which is at 2.25. TSM pays more dividend than 83.93% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, TSM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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
TSM pays out 27.78% 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.
DP27.78%
EPS Next 2Y30.91%
EPS Next 3Y27.45%
291.51
+1.55 (+0.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners36.31%
Inst Owner Change-1.05%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.51T
Revenue(TTM)3.63T
Net Income(TTM)1.59T
Analysts85.58
Price Target301.15 (3.31%)
Short Float %0.69%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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)6.8%
PT rev (3m)25.29%
EPS NQ rev (1m)1.05%
EPS NQ rev (3m)19.42%
EPS NY rev (1m)6.69%
EPS NY rev (3m)7.18%
Revenue NQ rev (1m)0.65%
Revenue NQ rev (3m)10.59%
Revenue NY rev (1m)2.3%
Revenue NY rev (3m)3.05%
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 Y42.73%
EPS Next 2Y30.91%
EPS Next 3Y27.45%
EPS Next 5Y17.97%
Revenue 1Y (TTM)36.96%
Revenue growth 3Y22.17%
Revenue growth 5Y22.02%
Sales Q2Q%30.31%
Revenue Next Year30.47%
Revenue Next 2Y25.74%
Revenue Next 3Y24.08%
Revenue Next 5Y17.88%
EBIT growth 1Y55.37%
EBIT growth 3Y26.7%
EBIT growth 5Y28.77%
EBIT Next Year91.87%
EBIT Next 3Y36.87%
EBIT Next 5Y28.28%
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 42.73% in the next year.