TAIWAN SEMICONDUCTOR-SP ADR (TSM) Stock Fundamental Analysis
USA - NYSE:TSM - US8740391003 - ADR
276.255 USD
+3.02 (+1.11%)
TSM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 112 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 shows excellent growth, but is valued quite expensive already. This makes TSM very considerable for growth investing!
1. Profitability
1.1 Basic Checks
TSM had positive earnings in each of the past 5 years.
TSM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TSM has a Return On Assets of 20.84%. This is amongst the best in the industry. TSM outperforms 92.86% of its industry peers.
TSM has a better Return On Equity (31.87%) than 91.96% of its industry peers.
TSM's Return On Invested Capital of 24.87% is amongst the best of the industry. TSM outperforms 95.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
The Profit Margin of TSM (42.92%) is better than 96.43% of its industry peers.
In the last couple of years the Profit Margin of TSM has grown nicely.
With an excellent Operating Margin value of 48.72%, TSM belongs to the best of the industry, outperforming 98.21% of the companies in the same industry.
In the last couple of years the Operating Margin of TSM has grown nicely.
TSM has a Gross Margin of 58.58%. This is amongst the best in the industry. TSM outperforms 83.04% of its industry peers.
In the last couple of years the Gross Margin of TSM has grown nicely.
| 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.
Compared to 5 years ago, TSM has about the same amount of shares outstanding.
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 better Debt to FCF ratio (1.01) 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.
Looking at the Current ratio, with a value of 2.37, TSM is doing worse than 63.39% of the companies in the same industry.
A Quick Ratio of 2.15 indicates that TSM has no problem at all paying its short term obligations.
TSM has a Quick ratio (2.15) which is in line with its industry peers.
| 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.
TSM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.73% yearly.
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
The Earnings Per Share is expected to grow by 17.81% on average over the next years. This is quite good.
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
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
28.42% of the earnings are spent on dividend by TSM. This is a low number and sustainable payout ratio.
TSM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.42%
EPS Next 2Y23.46%
EPS Next 3Y21.66%
NYSE:TSM (9/30/2025, 9:54:08 AM)
276.255
+3.02 (+1.11%)
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 Cap1432.80B
Analysts85.37
Price Target268.17 (-2.93%)
Short Float %0.56%
Short Ratio2.42
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%