TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis
NYSE:TSM - New York Stock Exchange, Inc. - US8740391003 - ADR - Currency: USD
Taking everything into account, TSM scores 6 out of 10 in our fundamental rating. TSM was compared to 110 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. 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.
In the past 5 years TSM always reported a positive cash flow from operatings.
1.2 Ratios
TSM has a Return On Assets of 18.36%. This is amongst the best in the industry. TSM outperforms 91.82% of its industry peers.
TSM has a Return On Equity of 28.69%. This is amongst the best in the industry. TSM outperforms 90.91% of its industry peers.
The Return On Invested Capital of TSM (21.81%) is better than 94.55% 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 11.27%.
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
TSM has a Profit Margin of 41.69%. This is amongst the best in the industry. TSM outperforms 96.36% of its industry peers.
In the last couple of years the Profit Margin of TSM has grown nicely.
The Operating Margin of TSM (47.12%) is better than 98.18% of its industry peers.
In the last couple of years the Operating Margin of TSM has grown nicely.
With an excellent Gross Margin value of 57.41%, TSM belongs to the best of the industry, outperforming 80.91% of the companies in the same industry.
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
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 1.12, which is an excellent value as it means it would take TSM, only 1.12 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.12, TSM is doing good in the industry, outperforming 77.27% of the companies in the same industry.
A Debt/Equity ratio of 0.21 indicates that TSM is not too dependend on debt financing.
TSM's Debt to Equity ratio of 0.21 is in line compared to the rest of the industry. TSM outperforms 44.55% 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.
TSM has a Current ratio of 2.39. This is in the lower half of the industry: TSM underperforms 64.55% of its industry peers.
A Quick Ratio of 2.18 indicates that TSM has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.18, TSM is in line with its industry, outperforming 51.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.72% over the past year.
TSM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.73% yearly.
Looking at the last year, TSM shows a very strong growth in Revenue. The Revenue has grown by 39.86%.
The Revenue has been growing by 22.02% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, TSM will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.80% on average per year.
TSM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.37% yearly.
EPS Next Y34.88%
EPS Next 2Y25.78%
EPS Next 3Y22.89%
EPS Next 5Y16.8%
Revenue Next Year27.5%
Revenue Next 2Y22.17%
Revenue Next 3Y20.92%
Revenue Next 5Y15.37%
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
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 22.89% in the coming years.
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 1.85%.
Compared to an average industry Dividend Yield of 2.59, TSM pays a better dividend. On top of this TSM pays more dividend than 86.36% of the companies listed in the same industry.
TSM's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
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.
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 29.71% 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.
DP29.71%
EPS Next 2Y25.78%
EPS Next 3Y22.89%
NYSE:TSM (5/13/2025, 2:52:09 PM)
192.86
+5.88 (+3.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners36.98%
Inst Owner Change0.51%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1000.28B
Analysts85.13
Price Target189.76 (-1.61%)
Short Float %0.66%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
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)3.29%
PT rev (3m)-7.59%
EPS NQ rev (1m)4.15%
EPS NQ rev (3m)5.23%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-0.66%
Revenue NQ rev (1m)5.27%
Revenue NQ rev (3m)6.21%
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-0.33%
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 Year27.5%
Revenue Next 2Y22.17%
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%