TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis
NYSE:TSM - New York Stock Exchange, Inc. - US8740391003 - ADR - Currency: USD
TSM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. While TSM has a great profitability rating, 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.
Each year in the past 5 years TSM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TSM (20.84%) is better than 92.73% of its industry peers.
The Return On Equity of TSM (31.87%) is better than 91.82% of its industry peers.
With an excellent Return On Invested Capital value of 24.87%, TSM belongs to the best of the industry, outperforming 95.45% 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 10.86%.
The last Return On Invested Capital (24.87%) for TSM is above the 3 year average (20.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.84% | ||
| ROE | 31.87% | ||
| ROIC | 24.87% |
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 (42.92%) is better than 96.36% of its industry peers.
TSM's Profit Margin has improved in the last couple of years.
TSM has a better Operating Margin (48.72%) than 98.18% of its industry peers.
TSM's Operating Margin has improved in the last couple of years.
TSM's Gross Margin of 58.58% is amongst the best of the industry. TSM outperforms 82.73% of its industry peers.
TSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.72% | ||
| PM (TTM) | 42.92% | ||
| GM | 58.58% |
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.
TSM has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of TSM is 1.01, which is an excellent value as it means it would take TSM, only 1.01 years of fcf income to pay off all of its debts.
TSM has a Debt to FCF ratio of 1.01. This is in the better half of the industry: TSM outperforms 75.45% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that TSM is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.19, TSM perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.37 indicates that TSM has no problem at all paying its short term obligations.
TSM has a Current ratio of 2.37. This is in the lower half of the industry: TSM underperforms 66.36% of its industry peers.
A Quick Ratio of 2.15 indicates that TSM has no problem at all paying its short term obligations.
The Quick ratio of TSM (2.15) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 58.08% 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 39.48% in the past year. This is a very strong growth!
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)58.08%
EPS 3Y25.28%
EPS 5Y27.73%
EPS Q2Q%60.7%
Revenue 1Y (TTM)39.48%
Revenue growth 3Y22.17%
Revenue growth 5Y22.02%
Sales Q2Q%38.65%
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 17.36% 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 16.03% on average per year.
EPS Next Y34.88%
EPS Next 2Y25.78%
EPS Next 3Y22.89%
EPS Next 5Y17.36%
Revenue Next Year26.49%
Revenue Next 2Y21.14%
Revenue Next 3Y19.95%
Revenue Next 5Y16.03%
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.
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
TSM has a Yearly Dividend Yield of 1.62%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.42, TSM pays a better dividend. On top of this TSM pays more dividend than 84.55% of the companies listed in the same industry.
TSM's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
On average, the dividend of TSM grows each year by 6.96%, which is quite nice.
TSM has paid a dividend for at least 10 years, which is 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 28.42% 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.
DP28.42%
EPS Next 2Y25.78%
EPS Next 3Y22.89%
NYSE:TSM (8/20/2025, 9:42:10 AM)
227.29
-5.41 (-2.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners34.52%
Inst Owner Change-5.18%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1178.84B
Analysts85
Price Target251 (10.43%)
Short Float %0.58%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Yearly DividendN/A
Dividend Growth(5Y)6.96%
DP28.42%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.13%
Min EPS beat(2)0.61%
Max EPS beat(2)3.66%
EPS beat(4)3
Avg EPS beat(4)2.87%
Min EPS beat(4)-0.17%
Max EPS beat(4)7.39%
EPS beat(8)7
Avg EPS beat(8)3.68%
EPS beat(12)11
Avg EPS beat(12)3.27%
EPS beat(16)14
Avg EPS beat(16)3.35%
Revenue beat(2)0
Avg Revenue beat(2)-1.43%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)-1.39%
Revenue beat(4)0
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)-0.1%
Revenue beat(8)1
Avg Revenue beat(8)-0.65%
Revenue beat(12)1
Avg Revenue beat(12)-1.26%
Revenue beat(16)2
Avg Revenue beat(16)-1.02%
PT rev (1m)2.11%
PT rev (3m)32.28%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)-3.73%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-1.86%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-0.79%
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 | 20.84% | ||
| ROE | 31.87% | ||
| ROCE | 29.44% | ||
| ROIC | 24.87% | ||
| ROICexc | 46.74% | ||
| ROICexgc | 46.74% | ||
| OM | 48.72% | ||
| PM (TTM) | 42.92% | ||
| GM | 58.58% | ||
| FCFM | 27.46% |
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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.01 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 171.12% | ||
| Cap/Sales | 35.31% | ||
| Interest Coverage | 82.56 | ||
| Cash Conversion | 90.51% | ||
| Profit Quality | 63.98% | ||
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.15 | ||
| 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)58.08%
EPS 3Y25.28%
EPS 5Y27.73%
EPS Q2Q%60.7%
EPS Next Y34.88%
EPS Next 2Y25.78%
EPS Next 3Y22.89%
EPS Next 5Y17.36%
Revenue 1Y (TTM)39.48%
Revenue growth 3Y22.17%
Revenue growth 5Y22.02%
Sales Q2Q%38.65%
Revenue Next Year26.49%
Revenue Next 2Y21.14%
Revenue Next 3Y19.95%
Revenue Next 5Y16.03%
EBIT growth 1Y61.84%
EBIT growth 3Y26.7%
EBIT growth 5Y28.77%
EBIT Next Year91.63%
EBIT Next 3Y37.36%
EBIT Next 5Y25.7%
FCF growth 1Y221.1%
FCF growth 3Y48.33%
FCF growth 5Y42.73%
OCF growth 1Y47.02%
OCF growth 3Y17.98%
OCF growth 5Y24.31%