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Taiwan Semiconductor Manufacturing

DB:TSFA
Snowflake Description

Flawless balance sheet with reasonable growth potential and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TSFA
DB
NT$6,483B
Market Cap
  1. Home
  2. DE
  3. Semiconductors
Company description

Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, engages in manufacturing, selling, packaging, testing, and computer-aided design of integrated circuits and other semiconductor devices. The last earnings update was 29 days ago. More info.


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TSFA Share Price and Events
7 Day Returns
-2.1%
DB:TSFA
-9.3%
DE Semiconductor
-3.8%
DE Market
1 Year Returns
5.3%
DB:TSFA
-26.2%
DE Semiconductor
-12%
DE Market
TSFA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Taiwan Semiconductor Manufacturing (TSFA) -2.1% -0.8% 0.3% 5.3% - -
DE Semiconductor -9.3% -6.2% -13.7% -26.2% 8.1% 58.2%
DE Market -3.8% -7.2% -7.2% -12% -2.1% 5.9%
1 Year Return vs Industry and Market
  • TSFA outperformed the Semiconductor industry which returned -26.2% over the past year.
  • TSFA outperformed the Market in Germany which returned -12% over the past year.
Price Volatility
TSFA
Industry
5yr Volatility vs Market

TSFA Value

 Is Taiwan Semiconductor Manufacturing undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Taiwan Semiconductor Manufacturing to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Taiwan Semiconductor Manufacturing.

DB:TSFA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 23 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.3%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:TSFA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Semiconductor Unlevered Beta Simply Wall St/ S&P Global 1.26
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.26 (1 + (1- 20%) (2.49%))
1.191
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.19
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.191 * 5.96%)
7.33%

Discounted Cash Flow Calculation for DB:TSFA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Taiwan Semiconductor Manufacturing is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:TSFA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (TWD, Millions) Source Present Value
Discounted (@ 7.33%)
2020 335,838.90 Analyst x14 312,913.94
2021 447,770.61 Analyst x8 388,725.85
2022 537,680.43 Est @ 20.08% 434,916.59
2023 613,622.44 Est @ 14.12% 462,462.91
2024 674,709.81 Est @ 9.96% 473,790.78
2025 722,189.43 Est @ 7.04% 472,513.94
2026 758,257.95 Est @ 4.99% 462,247.31
2027 785,285.53 Est @ 3.56% 446,045.26
2028 805,416.34 Est @ 2.56% 426,251.27
2029 820,420.05 Est @ 1.86% 404,553.01
Present value of next 10 years cash flows NT$4,284,420.88
DB:TSFA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= NT$820,420.05 × (1 + 0.23%) ÷ (7.33% – 0.23%)
NT$11,584,361.67
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NT$11,584,361.67 ÷ (1 + 7.33%)10
NT$5,712,303.55
DB:TSFA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NT$4,284,420.88 + NT$5,712,303.55
NT$9,996,724.43
Equity Value per Share
(TWD)
= Total value / Shares Outstanding
= NT$9,996,724.43 / 25,930.38
NT$385.52
DB:TSFA Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:TSFA represents 0.1476x of TSEC:2330
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.1476x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (TWD) x Listing Adjustment Factor
= NT$ 385.52 x 0.1476
€56.90
Value per share (EUR) From above. €56.90
Current discount Discount to share price of €36.90
= -1 x (€36.90 - €56.90) / €56.90
35.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Taiwan Semiconductor Manufacturing is available for.
Intrinsic value
35%
Share price is €36.9 vs Future cash flow value of €56.9
Current Discount Checks
For Taiwan Semiconductor Manufacturing to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Taiwan Semiconductor Manufacturing's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Taiwan Semiconductor Manufacturing's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Taiwan Semiconductor Manufacturing's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Taiwan Semiconductor Manufacturing's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:TSFA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in TWD NT$12.69
TSEC:2330 Share Price ** TSEC (2019-08-16) in TWD NT$250
Germany Semiconductor Industry PE Ratio Median Figure of 9 Publicly-Listed Semiconductor Companies 20.72x
Germany Market PE Ratio Median Figure of 410 Publicly-Listed Companies 18.67x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Taiwan Semiconductor Manufacturing.

DB:TSFA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSEC:2330 Share Price ÷ EPS (both in TWD)

= 250 ÷ 12.69

19.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Taiwan Semiconductor Manufacturing is good value based on earnings compared to the DE Semiconductor industry average.
  • Taiwan Semiconductor Manufacturing is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Taiwan Semiconductor Manufacturing's expected growth come at a high price?
Raw Data
DB:TSFA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts
14.9%per year
Germany Semiconductor Industry PEG Ratio Median Figure of 7 Publicly-Listed Semiconductor Companies 1.8x
Germany Market PEG Ratio Median Figure of 261 Publicly-Listed Companies 1.27x

*Line of best fit is calculated by linear regression .

DB:TSFA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.7x ÷ 14.9%

1.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Taiwan Semiconductor Manufacturing is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Taiwan Semiconductor Manufacturing's assets?
Raw Data
DB:TSFA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in TWD NT$59.92
TSEC:2330 Share Price * TSEC (2019-08-16) in TWD NT$250
Germany Semiconductor Industry PB Ratio Median Figure of 12 Publicly-Listed Semiconductor Companies 2.11x
Germany Market PB Ratio Median Figure of 566 Publicly-Listed Companies 1.61x
DB:TSFA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSEC:2330 Share Price ÷ Book Value per Share (both in TWD)

= 250 ÷ 59.92

4.17x

* Primary Listing of Taiwan Semiconductor Manufacturing.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Taiwan Semiconductor Manufacturing is overvalued based on assets compared to the DE Semiconductor industry average.
X
Value checks
We assess Taiwan Semiconductor Manufacturing's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check)
  5. Taiwan Semiconductor Manufacturing has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TSFA Future Performance

 How is Taiwan Semiconductor Manufacturing expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Taiwan Semiconductor Manufacturing expected to grow at an attractive rate?
  • Taiwan Semiconductor Manufacturing's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Taiwan Semiconductor Manufacturing's earnings growth is expected to exceed the Germany market average.
  • Taiwan Semiconductor Manufacturing's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:TSFA Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:TSFA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts 14.9%
DB:TSFA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 23 Analysts 10.5%
Germany Semiconductor Industry Earnings Growth Rate Market Cap Weighted Average 7.6%
Germany Semiconductor Industry Revenue Growth Rate Market Cap Weighted Average 5.9%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:TSFA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
All numbers in TWD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:TSFA Future Estimates Data
Date (Data in TWD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,283,506 787,682 441,347 15
2020-12-31 1,152,247 690,948 383,243 22
2019-12-31 1,043,778 627,615 328,372 23
DB:TSFA Past Financials Data
Date (Data in TWD Millions) Revenue Cash Flow Net Income *
2019-06-30 1,009,822 553,886 329,137
2019-03-31 1,002,099 565,899 334,662
2018-12-31 1,031,474 573,954 363,053
2018-09-30 1,019,274 588,708 352,320
2018-06-30 1,011,033 611,409 353,174
2018-03-31 991,611 585,036 347,154
2017-12-31 977,447 585,318 344,998
2017-09-30 962,104 566,412 341,492
2017-06-30 970,403 576,038 348,326
2017-03-31 978,357 579,314 354,561
2016-12-31 947,938 539,835 331,714
2016-09-30 889,230 499,287 303,161

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Taiwan Semiconductor Manufacturing's earnings are expected to grow by 14.9% yearly, however this is not considered high growth (20% yearly).
  • Taiwan Semiconductor Manufacturing's revenue is expected to grow by 10.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:TSFA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below

All data from Taiwan Semiconductor Manufacturing Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TSFA Future Estimates Data
Date (Data in TWD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 17.05 19.14 15.06 13.00
2020-12-31 14.87 17.09 13.19 22.00
2019-12-31 12.65 13.18 12.09 23.00
DB:TSFA Past Financials Data
Date (Data in TWD Millions) EPS *
2019-06-30 12.69
2019-03-31 12.91
2018-12-31 14.00
2018-09-30 13.59
2018-06-30 13.62
2018-03-31 13.39
2017-12-31 13.30
2017-09-30 13.17
2017-06-30 13.43
2017-03-31 13.67
2016-12-31 12.79
2016-09-30 11.69

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Taiwan Semiconductor Manufacturing is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Taiwan Semiconductor Manufacturing's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Taiwan Semiconductor Manufacturing has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TSFA Past Performance

  How has Taiwan Semiconductor Manufacturing performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Taiwan Semiconductor Manufacturing's growth in the last year to its industry (Semiconductor).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Taiwan Semiconductor Manufacturing's year on year earnings growth rate has been positive over the past 5 years.
  • Taiwan Semiconductor Manufacturing's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Taiwan Semiconductor Manufacturing's 1-year earnings growth is negative, it can't be compared to the DE Semiconductor industry average.
Earnings and Revenue History
Taiwan Semiconductor Manufacturing's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Taiwan Semiconductor Manufacturing Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TSFA Past Revenue, Cash Flow and Net Income Data
Date (Data in TWD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 1,009,821.60 329,136.70 24,777.70 87,386.60
2019-03-31 1,002,099.40 334,661.93 25,554.60 85,884.32
2018-12-31 1,031,473.60 363,052.70 26,253.70 85,895.60
2018-09-30 1,019,273.61 352,319.74 26,715.10 83,423.56
2018-06-30 1,011,033.07 353,173.54 26,964.12 82,582.80
2018-03-31 991,611.47 347,154.02 26,724.91 81,748.70
2017-12-31 977,447.20 344,998.30 27,169.20 80,732.50
2017-09-30 962,104.17 341,492.18 26,760.72 79,476.17
2017-06-30 970,402.71 348,325.80 27,385.71 77,155.05
2017-03-31 978,357.34 354,561.11 27,180.46 75,001.13
2016-12-31 947,938.30 331,713.70 25,696.40 71,207.70
2016-09-30 889,229.69 303,161.12 24,028.46 66,911.38
2016-06-30 841,328.71 281,731.29 22,585.99 64,673.43
2016-03-31 824,958.62 288,642.48 22,424.89 64,382.10
2015-12-31 843,497.40 302,850.90 22,921.90 65,544.60
2015-09-30 862,499.92 304,141.70 23,007.37 65,823.33
2015-06-30 859,044.74 305,143.73 23,269.02 64,544.25
2015-03-31 836,625.47 285,424.52 23,969.09 61,542.37
2014-12-31 762,806.50 254,301.40 24,020.80 56,828.80
2014-09-30 686,091.24 224,537.41 23,295.54 52,887.58
2014-06-30 639,618.54 200,158.10 23,263.25 51,037.37
2014-03-31 612,484.38 192,267.52 23,470.44 49,368.91
2013-12-31 597,024.20 183,977.60 23,387.00 47,952.00
2013-09-30 582,663.24 178,102.74 23,667.32 46,453.93
2013-06-30 561,585.45 175,530.43 23,477.66 43,753.71
2013-03-31 533,885.47 165,566.04 22,097.08 41,880.23
2012-12-31 506,745.30 159,480.80 22,129.20 40,387.10
2012-09-30 480,011.54 156,293.28 22,028.55 38,637.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Taiwan Semiconductor Manufacturing has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Taiwan Semiconductor Manufacturing used its assets more efficiently than the DE Semiconductor industry average last year based on Return on Assets.
  • Taiwan Semiconductor Manufacturing's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Taiwan Semiconductor Manufacturing's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Taiwan Semiconductor Manufacturing has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TSFA Health

 How is Taiwan Semiconductor Manufacturing's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Taiwan Semiconductor Manufacturing's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Taiwan Semiconductor Manufacturing is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Taiwan Semiconductor Manufacturing's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Taiwan Semiconductor Manufacturing's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 7.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Taiwan Semiconductor Manufacturing Company Filings, last reported 1 month ago.

DB:TSFA Past Debt and Equity Data
Date (Data in TWD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 1,554,422.00 161,661.00 764,615.00
2019-03-31 1,743,517.60 160,049.80 770,542.90
2018-12-31 1,661,105.10 180,708.60 713,546.50
2018-09-30 1,575,830.00 165,774.63 618,941.40
2018-06-30 1,490,635.29 130,136.54 761,818.66
2018-03-31 1,606,605.03 189,562.90 695,785.23
2017-12-31 1,494,446.50 213,967.90 656,438.60
2017-09-30 1,431,412.69 205,354.85 506,769.99
2017-06-30 1,342,365.65 233,927.76 661,141.88
2017-03-31 1,456,310.03 233,797.72 662,921.37
2016-12-31 1,359,845.80 249,183.30 636,024.20
2016-09-30 1,283,892.65 227,943.33 522,769.15
2016-06-30 1,197,330.98 242,063.74 675,129.37
2016-03-31 1,280,946.08 249,144.46 655,300.75
2015-12-31 1,194,970.10 254,989.20 590,290.70
2015-09-30 1,150,994.94 249,085.81 528,226.03
2015-06-30 1,066,627.56 218,355.21 558,458.49
2015-03-31 1,123,915.75 231,932.69 522,333.29
2014-12-31 1,022,360.70 250,231.90 440,034.50
2014-09-30 956,558.25 248,333.91 292,981.80
2014-06-30 876,960.29 245,625.02 315,271.95
2014-03-31 897,998.10 236,684.18 235,409.07
2013-12-31 848,473.72 226,452.63 245,844.33
2013-09-30 804,174.76 228,526.32 218,567.61
2013-06-30 746,236.27 201,268.99 228,213.52
2013-03-31 768,649.09 162,299.47 190,372.36
2012-12-31 713,594.30 116,205.80 151,232.30
2012-09-30 677,146.06 106,868.40 148,068.36
  • Taiwan Semiconductor Manufacturing's level of debt (9.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (28% vs 9.1% today).
  • Debt is well covered by operating cash flow (389.9%, greater than 20% of total debt).
  • Taiwan Semiconductor Manufacturing earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Taiwan Semiconductor Manufacturing's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Taiwan Semiconductor Manufacturing has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TSFA Dividends

 What is Taiwan Semiconductor Manufacturing's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4%
Current annual income from Taiwan Semiconductor Manufacturing dividends. Estimated to be 4.18% next year.
If you bought €2,000 of Taiwan Semiconductor Manufacturing shares you are expected to receive €80 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Taiwan Semiconductor Manufacturing's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.61%).
  • Taiwan Semiconductor Manufacturing's dividend is below the markets top 25% of dividend payers in Germany (4.29%).
Upcoming dividend payment

Purchase Taiwan Semiconductor Manufacturing before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:TSFA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
Europe Semiconductor Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 1.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 320 Stocks 3.4%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.6%
Germany Top 25% Dividend Yield 75th Percentile 4.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:TSFA Future Dividends Estimate Data
Date (Data in NT$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 11.45 14.00
2020-12-31 10.33 20.00
2019-12-31 9.84 18.00
DB:TSFA Past Annualized Dividends Data
Date (Data in NT$) Dividend per share (annual) Avg. Yield (%)
2019-08-13 10.000 4.024
2019-06-05 8.000 3.229
2019-02-19 8.000 3.266
2018-02-21 8.000 3.422
2017-06-08 7.000 3.099
2016-02-02 6.000 3.430
2015-06-09 4.500 3.309
2014-06-24 3.000 2.221
2013-02-05 3.000 2.789
2012-07-19 3.000 3.351
2012-06-12 2.999 3.785
2012-04-13 3.000 3.610
2012-02-24 3.000 3.641
2012-01-16 3.000 3.856
2011-06-09 3.000 4.180
2010-05-05 3.000 4.565
2010-04-15 3.000 4.822
2010-02-08 3.000 4.937
2010-01-29 3.000 5.078
2009-04-30 2.985 5.036

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Taiwan Semiconductor Manufacturing's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess Taiwan Semiconductor Manufacturing's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Taiwan Semiconductor Manufacturing afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Taiwan Semiconductor Manufacturing has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TSFA Management

 What is the CEO of Taiwan Semiconductor Manufacturing's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
C. Wei
COMPENSATION NT$236,582,562
TENURE AS CEO 1.2 years
CEO Bio

Dr. C. C. Wei serves as CEO & Vice Chairman of Taiwan Semiconductor Manufacturing Company Ltd since June 05, 2018. He was a Co-Chief Executive Officer and President of Taiwan Semiconductor Manufacturing Company Limited from November 12, 2013 until June 05, 2018 and serves as its Additional Director since June 8, 2017. Dr. Wei served as Co-Chief Operating Officer and Executive Vice President of Taiwan Semiconductor Manufacturing Co. Ltd since March 2, 2012. Dr. Wei served as a Senior Vice President of Business Development at Taiwan Semiconductor Manufacturing Co. Ltd. from October 2009 to March 2012. Dr. Wei served as a Senior Vice President of Mainstream Technology Business at Taiwan Semiconductor Manufacturing Co. Ltd. from March 2008 to October 2009. Dr. Wei served as a Senior Vice President for Operations I of Taiwan Semiconductor Manufacturing Co. Ltd. since December 2005 and served as its Vice President for Operations I since January 2002. Prior to that, Dr. Wei served as Vice President of South sites Operations of Taiwan Semiconductor Manufacturing Co., Ltd. from April 2000 and Vice President, North sites Operations from February 1998 to April 2000. Prior to that, he served as Senior Vice President at Chartered Semiconductor Manufacturing Ltd. in Singapore since 1993. He joined TSMC in November 14, 1997. Prior to TSMC, he served as Senior Vice President of Technology in Chartered Semiconductor Mfg from 1993 to 1997. And before Chartered Semiconductor, he served at ST Microelectronics USA as Senior manager in charge of LOGIC and SRAM technology development. Before ST Microelectronics, he served at Texas Instruments as Member of Technical Staff. He served as a Director of Vanguard International Semiconductor Corp. since June 2008. He is Chairman, Taiwan Semiconductor Industry Association, Director of Taiwan Semiconductor Manufacturing Company Charity Foundation and Chairman, TSMC Nanjing Company Ltd. Dr. Wei holds a Ph.D. in Electrical Engineering from Yale University, Connecticutat and B.S. and Master’s degree in Electrical Engineering from National Chiao Tung University.

CEO Compensation
  • C.'s compensation has been consistent with company performance over the past year, both up more than 20%.
  • C.'s remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure of the Taiwan Semiconductor Manufacturing management team in years:

2.8
Average Tenure
  • The tenure for the Taiwan Semiconductor Manufacturing management team is about average.
Management Team

C. Wei

TITLE
Vice Chairman & CEO
COMPENSATION
NT$237M
TENURE
1.2 yrs

Lora He Ho

TITLE
Controller
COMPENSATION
NT$98M
TENURE
15.9 yrs

Sylvia Fang

TITLE
VP of Legal & General Counsel

Elizabeth Sun

TITLE
Senior Director of Corporate Communication Division

Connie Ma

TITLE
Vice President of Human Resources
TENURE
5 yrs

Wei-Jen Lo

TITLE
Senior Vice President of Research & Development/Technology Development

Y. Chin

TITLE
Senior Vice President of Operations & Product Development
TENURE
2.8 yrs

Rick Cassidy

TITLE
Senior Vice President of Corporate Strategy Office
TENURE
5.5 yrs

J. Lin

TITLE
Senior Vice President of Information Technology and Materials Management & Risk Management
TENURE
0.8 yrs

J. Wang

TITLE
Senior Vice President of Operations/Fab Operations
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Taiwan Semiconductor Manufacturing board of directors in years:

6.2
Average Tenure
72
Average Age
  • The tenure for the Taiwan Semiconductor Manufacturing board of directors is about average.
Board of Directors

Mark Liu

TITLE
Chairman of the Board
COMPENSATION
NT$150M
TENURE
1.2 yrs

C. Wei

TITLE
Vice Chairman & CEO
COMPENSATION
NT$237M
TENURE
1.2 yrs

Makoto Onodera

TITLE
President of TSMC Japan Limited and Director of TSMC Japan Limited

Maria Marced

TITLE
President of TSMC Europe BV and Director of TSMC Europe BV
AGE
65

Peter Bonfield

TITLE
Independent Director
COMPENSATION
NT$14M
AGE
75
TENURE
17.3 yrs

Mike Splinter

TITLE
Independent Director
COMPENSATION
NT$14M
AGE
69
TENURE
4.2 yrs

Fan Tseng

TITLE
Director
COMPENSATION
NT$16M
TENURE
22.3 yrs

Stan Shih

TITLE
Independent Director
COMPENSATION
NT$12M
AGE
75
TENURE
19.3 yrs

Kok-Choo Chen

TITLE
Independent Director
COMPENSATION
NT$12M
TENURE
8.2 yrs

Mei-Ling Chen

TITLE
Director
COMPENSATION
NT$10M
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Taiwan Semiconductor Manufacturing's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Taiwan Semiconductor Manufacturing has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TSFA News

Simply Wall St News

TSFA Company Info

Description

Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, engages in manufacturing, selling, packaging, testing, and computer-aided design of integrated circuits and other semiconductor devices. The company manufactures masks and electronic spare parts; researches, develops, designs, manufactures, sells, packages, and tests color filters; and offers customer and engineering support services. It is also involved in investing activities. The company operates in North America, China, Japan, Asia Pacific, Europe, the Middle East, and Africa. Taiwan Semiconductor Manufacturing Company Limited was founded in 1987 and is headquartered in HsinChu, Taiwan.

Details
Name: Taiwan Semiconductor Manufacturing Company Limited
TSFA
Exchange: DB
Founded: 1987
NT$186,702,716,985
25,930,380,458
Website: http://www.tsmc.com
Address: Taiwan Semiconductor Manufacturing Company Limited
Hsinchu Science Park,
No. 8, Li-Hsin Road 6,
HsinChu,
300-78,
Taiwan
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSEC 2330 Common Shares Taiwan Stock Exchange TW TWD 24. Oct 1994
NYSE TSM ADS EACH CNV INTO 5 ORD TWD10 New York Stock Exchange US USD 08. Oct 1997
DB TSFA ADS EACH CNV INTO 5 ORD TWD10 Deutsche Boerse AG DE EUR 08. Oct 1997
WBAG TSFA ADS EACH CNV INTO 5 ORD TWD10 Wiener Boerse AG AT EUR 08. Oct 1997
BMV TSM N ADS EACH CNV INTO 5 ORD TWD10 Bolsa Mexicana de Valores MX MXN 08. Oct 1997
Number of employees
Current staff
Staff numbers
0
Taiwan Semiconductor Manufacturing employees.
Industry
Semiconductors
Semiconductors
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/16 21:44
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/16
Last earnings filing: 2019/07/18
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.