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TSM

Taiwan Semiconductor Manufacturing NYSE:TSM Stock Report

Last Price

NT$84.34

Market Cap

NT$434.0b

7D

-3.0%

1Y

-29.9%

Updated

28 Jun, 2022

Data

Company Financials +
TSM fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance4/6
Financial Health5/6
Dividends5/6

TSM Stock Overview

Taiwan Semiconductor Manufacturing Company Limited manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally.

Taiwan Semiconductor Manufacturing Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Taiwan Semiconductor Manufacturing
Historical stock prices
Current Share PriceNT$84.34
52 Week HighNT$145.00
52 Week LowNT$82.76
Beta1.06
1 Month Change-10.06%
3 Month Change-20.98%
1 Year Change-29.85%
3 Year Change106.72%
5 Year Change141.80%
Change since IPO1,435.21%

Recent News & Updates

Jun 20

Taiwan Semiconductor: You Will Not Believe How Cheap This Wide Moat Company Has Become

We believe Taiwan Semiconductor is one of the most attractive businesses on the planet, and certainly one of the few companies with operating margins above 40%. The size of TSMC's competitive moat is enormous, which has allowed it to earn superior returns on invested capital and grow at a very high pace. Our estimate for fair value is $179, which means TSM stock would return >100% if they were to trade in line with our estimated valuation. There are reasons to believe growth will continue for at least a few more years, and that the historical cyclicality of the industry will moderate going forward.

May 31

TSMC Has Key Advantages

Given their position as a pure-play foundry, TSMC has a focus that can’t be matched by Samsung and Intel. TSMC and Apple are deeply entrenched in their partnership, and both are highly incentivized to continue their beneficial relationship. No one has the same combination of focus, size and experience as TSMC with respect to key capex decisions.

May 19

Taiwan Semiconductor: On 37% Sale - Own One Of The World's Most Important Companies

TSM is now trading at near-bottom P/E valuations with attractive prices, given the market moderation in the past 12 months. The company is also investing in new plants locally and overseas, while pushing for 3 nm and 2 nm production technologies by 2022/2025. TSM will retain its massive market share in the coming decade, thanks to its long-term expertise and its mastery of the industry's complicated supply chains. Tech investors should not miss out on this stock, which will likely remain one of the most influential companies in the world.

Shareholder Returns

TSMUS SemiconductorUS Market
7D-3.0%5.3%6.3%
1Y-29.9%-16.2%-18.8%

Return vs Industry: TSM underperformed the US Semiconductor industry which returned -16.2% over the past year.

Return vs Market: TSM underperformed the US Market which returned -18.8% over the past year.

Price Volatility

Is TSM's price volatile compared to industry and market?
TSM volatility
TSM Average Weekly Movement5.1%
Semiconductor Industry Average Movement8.5%
Market Average Movement8.1%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.2%

Stable Share Price: TSM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: TSM's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198754,193C. C. Weihttps://www.tsmc.com

Taiwan Semiconductor Manufacturing Company Limited manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides complementary metal oxide silicon wafer fabrication processes to manufacture logic, mixed-signal, radio frequency, and embedded memory semiconductors. The company also offers customer support, account management, and engineering services, as well as manufactures masks.

Taiwan Semiconductor Manufacturing Fundamentals Summary

How do Taiwan Semiconductor Manufacturing's earnings and revenue compare to its market cap?
TSM fundamental statistics
Market CapNT$12.90t
Earnings (TTM)NT$659.58b
Revenue (TTM)NT$1.72t

19.6x

P/E Ratio

7.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TSM income statement (TTM)
RevenueNT$1.72t
Cost of RevenueNT$813.18b
Gross ProfitNT$902.90b
Other ExpensesNT$243.32b
EarningsNT$659.58b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)25.44
Gross Margin52.61%
Net Profit Margin38.44%
Debt/Equity Ratio34.2%

How did TSM perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

43%

Payout Ratio

Does TSM pay a reliable dividends?

See TSM dividend history and benchmarks
When do you need to buy TSM by to receive an upcoming dividend?
Taiwan Semiconductor Manufacturing dividend dates
Ex Dividend DateSep 15 2022
Dividend Pay DateOct 13 2022
Days until Ex dividend78 days
Days until Dividend pay date106 days

Does TSM pay a reliable dividends?

See TSM dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is TSM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TSM?

Other financial metrics that can be useful for relative valuation.

TSM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7.2x
Enterprise Value/EBITDA10.8x
PEG Ratio1.7x

Price to Earnings Ratio vs Peers

How does TSM's PE Ratio compare to its peers?

TSM PE Ratio vs Peers
The above table shows the PE ratio for TSM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average24.1x
NVDA NVIDIA
42.3x17.5%US$422.4b
AVGO Broadcom
23.3x10.0%US$201.3b
QCOM QUALCOMM
13.2x1.5%US$142.4b
TXN Texas Instruments
17.4x-2.4%US$143.5b
TSM Taiwan Semiconductor Manufacturing
19.6x11.8%US$12.9t

Price-To-Earnings vs Peers: TSM is good value based on its Price-To-Earnings Ratio (19.6x) compared to the peer average (24.1x).


Price to Earnings Ratio vs Industry

How does TSM's PE Ratio compare vs other companies in the US Semiconductor Industry?

Price-To-Earnings vs Industry: TSM is expensive based on its Price-To-Earnings Ratio (19.6x) compared to the US Semiconductor industry average (18.7x)


Price to Earnings Ratio vs Fair Ratio

What is TSM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TSM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.6x
Fair PE Ratio33.2x

Price-To-Earnings vs Fair Ratio: TSM is good value based on its Price-To-Earnings Ratio (19.6x) compared to the estimated Fair Price-To-Earnings Ratio (33.2x).


Share Price vs Fair Value

What is the Fair Price of TSM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TSM ($84.34) is trading below our estimate of fair value ($139.14)

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


Price to Earnings Growth Ratio

PEG Ratio: TSM is poor value based on its PEG Ratio (1.7x)


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Future Growth

How is Taiwan Semiconductor Manufacturing forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TSM's forecast earnings growth (11.8% per year) is above the savings rate (1.9%).

Earnings vs Market: TSM's earnings (11.8% per year) are forecast to grow slower than the US market (13.8% per year).

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

Revenue vs Market: TSM's revenue (13.6% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: TSM's revenue (13.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TSM's Return on Equity is forecast to be high in 3 years time (28.6%)


Discover growth companies

Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


14.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TSM has high quality earnings.

Growing Profit Margin: TSM's current net profit margins (38.4%) are lower than last year (38.9%).


Past Earnings Growth Analysis

Earnings Trend: TSM's earnings have grown by 14.3% per year over the past 5 years.

Accelerating Growth: TSM's earnings growth over the past year (22%) exceeds its 5-year average (14.3% per year).

Earnings vs Industry: TSM earnings growth over the past year (22%) underperformed the Semiconductor industry 70.4%.


Return on Equity

High ROE: TSM's Return on Equity (28.4%) is considered high.


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Financial Health

How is Taiwan Semiconductor Manufacturing's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TSM's short term assets (NT$1,722.2B) exceed its short term liabilities (NT$822.9B).

Long Term Liabilities: TSM's short term assets (NT$1,722.2B) exceed its long term liabilities (NT$848.3B).


Debt to Equity History and Analysis

Debt Level: TSM has more cash than its total debt.

Reducing Debt: TSM's debt to equity ratio has increased from 15.5% to 34.2% over the past 5 years.

Debt Coverage: TSM's debt is well covered by operating cash flow (158.2%).

Interest Coverage: TSM's interest payments on its debt are well covered by EBIT (840.8x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.21%

Current Dividend Yield

Upcoming Dividend Payment

TodayJun 29 2022Ex Dividend DateSep 15 2022Dividend Pay DateOct 13 202228 days from Ex DividendBuy in the next 78 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: TSM's dividend (2.21%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: TSM's dividend (2.21%) is low compared to the top 25% of dividend payers in the US market (4.25%).


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (43.2%), TSM's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (72.4%), TSM's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

4.0yrs

Average management tenure


CEO

C. C. Wei

4yrs

Tenure

NT$209,350,187

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. C.'s total compensation ($USD7.04M) is below average for companies of similar size in the US market ($USD13.41M).

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


Leadership Team

Experienced Management: TSM's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: TSM's board of directors are considered experienced (5 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 employee growth, exchange listings and data sources


Key Information

  • Name: Taiwan Semiconductor Manufacturing Company Limited
  • Ticker: TSM
  • Exchange: NYSE
  • Founded: 1987
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Implied Market Cap: NT$12.900t
  • Listing Market Cap: NT$433.961b
  • 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
  • 300096
  • Taiwan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.