TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis
USA - NYSE:TSM - US8740391003 - ADR
273.23 USD
-0.13 (-0.05%)
274.33 USD
+1.1 (+0.4%)
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. 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 would make TSM suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past 5 years TSM has always been profitable.
TSM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TSM has a better Return On Assets (20.84%) than 92.86% of its industry peers.
TSM has a Return On Equity of 31.87%. This is amongst the best in the industry. TSM outperforms 91.96% of its industry peers.
Looking at the Return On Invested Capital, with a value of 24.87%, TSM belongs to the top of the industry, outperforming 95.54% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TSM is significantly above the industry average of 10.93%.
The 3 year average ROIC (20.33%) for TSM is below the current ROIC(24.87%), indicating increased profibility in the last year.
| 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
TSM has a better Profit Margin (42.92%) than 96.43% of its industry peers.
In the last couple of years the Profit Margin of TSM has grown nicely.
The Operating Margin of TSM (48.72%) is better than 98.21% of its industry peers.
In the last couple of years the Operating Margin of TSM has grown nicely.
TSM's Gross Margin of 58.58% is amongst the best of the industry. TSM outperforms 83.04% 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.
The number of shares outstanding for TSM remains at a similar level compared to 5 years ago.
TSM has a better debt/assets ratio than last year.
2.2 Solvency
TSM has a debt to FCF ratio of 1.01. This is a very positive value and a sign of high solvency as it would only need 1.01 years to pay back of all of its debts.
The Debt to FCF ratio of TSM (1.01) is better than 75.00% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that TSM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, TSM is in line with its industry, outperforming 46.43% 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.
The Current ratio of TSM (2.37) is worse than 63.39% of its industry peers.
A Quick Ratio of 2.15 indicates that TSM has no problem at all paying its short term obligations.
With a Quick ratio value of 2.15, TSM perfoms like the industry average, outperforming 51.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
TSM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 58.08%, which is quite impressive.
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.
TSM shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.48%.
The Revenue has been growing by 22.02% on average over the past years. This is a very strong growth!
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
TSM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.81% yearly.
Based on estimates for the next years, TSM will show a quite strong growth in Revenue. The Revenue will grow by 16.48% on average per year.
EPS Next Y33.78%
EPS Next 2Y23.46%
EPS Next 3Y21.66%
EPS Next 5Y17.81%
Revenue Next Year26.94%
Revenue Next 2Y20.99%
Revenue Next 3Y20.27%
Revenue Next 5Y16.48%
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 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 1.42%, TSM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.20, TSM pays a better dividend. On top of this TSM pays more dividend than 84.82% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, TSM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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.
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 28.42% 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.
DP28.42%
EPS Next 2Y23.46%
EPS Next 3Y21.66%
273.23
-0.13 (-0.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners36.31%
Inst Owner Change-5.18%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1417.11B
Analysts85.37
Price Target268.17 (-1.85%)
Short Float %0.51%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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)11.56%
PT rev (3m)19.72%
EPS NQ rev (1m)0.92%
EPS NQ rev (3m)-3.06%
EPS NY rev (1m)0.45%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)-0.44%
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 Y33.78%
EPS Next 2Y23.46%
EPS Next 3Y21.66%
EPS Next 5Y17.81%
Revenue 1Y (TTM)39.48%
Revenue growth 3Y22.17%
Revenue growth 5Y22.02%
Sales Q2Q%38.65%
Revenue Next Year26.94%
Revenue Next 2Y20.99%
Revenue Next 3Y20.27%
Revenue Next 5Y16.48%
EBIT growth 1Y61.84%
EBIT growth 3Y26.7%
EBIT growth 5Y28.77%
EBIT Next Year91.87%
EBIT Next 3Y36.87%
EBIT Next 5Y26.19%
FCF growth 1Y221.1%
FCF growth 3Y48.33%
FCF growth 5Y42.73%
OCF growth 1Y47.02%
OCF growth 3Y17.98%
OCF growth 5Y24.31%