TSEC:2330

Stock Analysis Report

Taiwan Semiconductor Manufacturing

Executive Summary

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.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Taiwan Semiconductor Manufacturing's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2330's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.3%

2330

4.1%

TW Semiconductor

3.0%

TW Market


1 Year Return

11.4%

2330

8.2%

TW Semiconductor

-8.9%

TW Market

Return vs Industry: 2330 exceeded the TW Semiconductor industry which returned 6.8% over the past year.

Return vs Market: 2330 exceeded the TW Market which returned -10.3% over the past year.


Shareholder returns

2330IndustryMarket
7 Day3.3%4.1%3.0%
30 Day-10.2%-10.9%-12.0%
90 Day-14.1%-14.3%-15.5%
1 Year18.0%11.4%13.9%8.2%-4.7%-8.9%
3 Year68.0%48.2%56.3%38.5%12.7%-0.4%
5 Year139.0%96.5%92.5%58.1%24.8%2.2%

Price Volatility Vs. Market

How volatile is Taiwan Semiconductor Manufacturing's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Taiwan Semiconductor Manufacturing undervalued compared to its fair value and its price relative to the market?

26.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2330 (NT$271.5) is trading below our estimate of fair value (NT$362.85)

Significantly Below Fair Value: 2330 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2330 is poor value based on its PE Ratio (20.4x) compared to the Semiconductor industry average (14.5x).

PE vs Market: 2330 is poor value based on its PE Ratio (20.4x) compared to the TW market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: 2330 is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: 2330 is overvalued based on its PB Ratio (4.3x) compared to the TW Semiconductor industry average (1.3x).


Next Steps

Future Growth

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

14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2330's forecast earnings growth (14.3% per year) is above the savings rate (0.7%).

Earnings vs Market: 2330's earnings (14.3% per year) are forecast to grow faster than the TW market (11.1% per year).

High Growth Earnings: 2330's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2330's revenue (11.3% per year) is forecast to grow faster than the TW market (7% per year).

High Growth Revenue: 2330's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2330's Return on Equity is forecast to be high in 3 years time (28.3%)


Next Steps

Past Performance

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

4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2330 has high quality earnings.

Growing Profit Margin: 2330's current net profit margins (32.3%) are lower than last year (34%).


Past Earnings Growth Analysis

Earnings Trend: 2330's earnings have grown by 4.6% per year over the past 5 years.

Accelerating Growth: 2330's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2330 had negative earnings growth (-1.7%) over the past year, making it difficult to compare to the Semiconductor industry average (-1.7%).


Return on Equity

High ROE: 2330's Return on Equity (21.3%) is considered high.


Next Steps

Financial Health

How is Taiwan Semiconductor Manufacturing's financial position?


Financial Position Analysis

Short Term Liabilities: 2330's short term assets (NT$822.6B) exceed its short term liabilities (NT$590.7B).

Long Term Liabilities: 2330's short term assets (NT$822.6B) exceed its long term liabilities (NT$52.0B).


Debt to Equity History and Analysis

Debt Level: 2330's debt to equity ratio (10.8%) is considered satisfactory.

Reducing Debt: 2330's debt to equity ratio has reduced from 24.4% to 10.8% over the past 5 years.

Debt Coverage: 2330's debt is well covered by operating cash flow (350.7%).

Interest Coverage: 2330 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

3.53%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 2330's dividend (3.68%) is higher than the bottom 25% of dividend payers in the TW market (3.27%).

High Dividend: 2330's dividend (3.68%) is low compared to the top 25% of dividend payers in the TW market (7.1%).


Stability and Growth of Payments

Stable Dividend: 2330's dividends per share have been stable in the past 10 years.

Growing Dividend: 2330's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.3%), 2330's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2330's dividends in 3 years are forecast to be covered by earnings (69.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

C. Wei

1.83s

Tenure

NT$236,582,562

Compensation

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 Co ...


CEO Compensation Analysis

Compensation vs Market: C.'s total compensation ($USD7.82M) is above average for companies of similar size in the TW market ($USD1.27M).

Compensation vs Earnings: C.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
C. Wei
Vice Chairman & CEO1.83yrsNT$236.58m0.028% NT$2.0b
Simon Jang
Vice Presidentno datano data0.0014% NT$99.8m
Jen-Chau Huang
VP & CFO0.58yrno data0.0064% NT$467.4m
Jeff Su
Deputy Director of Investor Relationsno datano datano data
Sylvia Fang
VP of Legal & General Counselno datano data0.0030% NT$217.9m
Elizabeth Sun
Senior Director of Corporate Communication Divisionno datano datano data
Connie Ma
Vice President of Human Resources5.67yrsno data0.00054% NT$39.6m
Wei-Jen Lo
Senior Vice President of Research & Development/Technology Developmentno datano data0.0056% NT$408.0m
Y. Chin
Senior Vice President of Operations & Product Development3.42yrsno data0.035% NT$2.6b
Richard Cassidy
Senior Vice President of Corporate Strategy Office6.17yrsno datano data

3.4yrs

Average Tenure

Experienced Management: 2330's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
C. Wei
Vice Chairman & CEO1.83yrsNT$236.58m0.028% NT$2.0b
Makoto Onodera
President of TSMC Japan Limited and Director of TSMC Japan Limitedno datano datano data
Maria Marced
President of TSMC Europe BV and Director of TSMC Europe BVno datano datano data
Michael Splinter
Independent Director4.83yrsNT$14.49mno data
Fan Tseng
Director22.92yrsNT$16.34m0.13% NT$9.8b
Mark Liu
Chairman of the Board1.83yrsNT$149.94m0.050% NT$3.7b
Stan Shih
Independent Director20yrsNT$12.00m0.0058% NT$423.4m
Peter Bonfield
Independent Director17.92yrsNT$14.49mno data
Kok-Choo Chen
Independent Director8.83yrsNT$12.00m0.000020% NT$1.5m
Mei-Ling Chen
Director2.42yrsNT$9.60mno data

6.8yrs

Average Tenure

72yo

Average Age

Experienced Board: 2330's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Taiwan Semiconductor Manufacturing Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Taiwan Semiconductor Manufacturing Company Limited
  • Ticker: 2330
  • Exchange: TSEC
  • Founded: 1987
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: NT$7.338t
  • Shares outstanding: 25.93b
  • Website: https://www.tsmc.com

Number of Employees


Location

  • Taiwan Semiconductor Manufacturing Company Limited
  • Hsinchu Science Park
  • No. 8, Li-Hsin Road 6
  • Hsinchu City
  • 300-78
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2330TSEC (Taiwan Stock Exchange)YesCommon SharesTWTWDOct 1994
TSMNYSE (New York Stock Exchange)ADS EACH CNV INTO 5 ORD TWD10USUSDOct 1997
TSM NBMV (Bolsa Mexicana de Valores)ADS EACH CNV INTO 5 ORD TWD10MXMXNOct 1997
TSFADB (Deutsche Boerse AG)ADS EACH CNV INTO 5 ORD TWD10DEEUROct 1997
0LCVLSE (London Stock Exchange)ADS EACH CNV INTO 5 ORD TWD10GBUSDOct 1997
TSFAWBAG (Wiener Boerse AG)ADS EACH CNV INTO 5 ORD TWD10ATEUROct 1997

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 15:30
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.