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.
No risks detected for TSM from our risk checks.
Taiwan Semiconductor Manufacturing Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||NT$84.34|
|52 Week High||NT$145.00|
|52 Week Low||NT$82.76|
|1 Month Change||-10.06%|
|3 Month Change||-20.98%|
|1 Year Change||-29.85%|
|3 Year Change||106.72%|
|5 Year Change||141.80%|
|Change since IPO||1,435.21%|
Recent News & Updates
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.
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.
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.
|TSM||US Semiconductor||US Market|
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.
|TSM Average Weekly Movement||5.1%|
|Semiconductor Industry Average Movement||8.5%|
|Market Average Movement||8.1%|
|10% most volatile stocks in US Market||16.7%|
|10% least volatile stocks in US Market||3.2%|
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
|1987||54,193||C. C. Wei||https://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
|TSM fundamental statistics|
Is TSM overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|TSM income statement (TTM)|
|Cost of Revenue||NT$813.18b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||25.44|
|Net Profit Margin||38.44%|
How did TSM perform over the long term?See historical performance and comparison
2.2%Current Dividend Yield
Does TSM pay a reliable dividends?See TSM dividend history and benchmarks
|Taiwan Semiconductor Manufacturing dividend dates|
|Ex Dividend Date||Sep 15 2022|
|Dividend Pay Date||Oct 13 2022|
|Days until Ex dividend||78 days|
|Days until Dividend pay date||106 days|
Does TSM pay a reliable dividends?See TSM dividend history and benchmarks
Is TSM undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is TSM's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does TSM's PE Ratio compare to its peers?
|TSM PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
TXN Texas Instruments
TSM Taiwan Semiconductor Manufacturing
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.
|Current PE Ratio||19.6x|
|Fair PE Ratio||33.2x|
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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How is Taiwan Semiconductor Manufacturing forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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%)
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How has Taiwan Semiconductor Manufacturing performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
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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How is Taiwan Semiconductor Manufacturing's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
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$848.3B).
Debt to Equity History and Analysis
Debt Level: TSM has more cash than its total debt.
Reducing Debt: TSM's debt to equity ratio has increased from 15.5% to 34.2% over the past 5 years.
Debt Coverage: TSM's debt is well covered by operating cash flow (158.2%).
Interest Coverage: TSM's interest payments on its debt are well covered by EBIT (840.8x coverage).
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What is Taiwan Semiconductor Manufacturing current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Future Dividend Coverage
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: TSM's dividend (2.21%) is higher than the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: TSM's dividend (2.21%) is low compared to the top 25% of dividend payers in the US market (4.25%).
Stability and Growth of Payments
Stable Dividend: TSM's dividends per share have been stable in the past 10 years.
Growing Dividend: TSM's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (43.2%), TSM's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (72.4%), TSM's dividend payments are covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
C. C. Wei
Dr. C. C. Wei serves as CEO & Vice Chairman of Taiwan Semiconductor Manufacturing Company Ltd since June 05, 2018. He was a Co-Chief Executive Officer and President of Taiwan Semiconductor Manufacturing Co...
CEO Compensation Analysis
Compensation vs Market: C. C.'s total compensation ($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.
Experienced Management: TSM's management team is considered experienced (4 years average tenure).
Experienced Board: TSM's board of directors are considered experienced (5 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Taiwan Semiconductor Manufacturing Company Limited's employee growth, exchange listings and data sources
- 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
- Taiwan Semiconductor Manufacturing Company Limited
- Hsinchu Science Park
- No. 8, Li-Hsin Road 6
- Hsinchu City
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/28 00:00|
|End of Day Share Price||2022/06/28 00:00|
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.