NYSE:TSM

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

Fundamentals

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


Market Performance


7 Day Return

2.4%

NYSE:TSM

2.0%

US Semiconductor

1.3%

US Market


1 Year Return

0.7%

NYSE:TSM

11.1%

US Semiconductor

2.0%

US Market

TSM underperformed the Semiconductor industry which returned 10.9% over the past year.

TSM underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

TSMIndustryMarket
7 Day2.4%2.0%1.3%
30 Day7.7%8.4%3.9%
90 Day18.8%16.8%3.4%
1 Year3.3%0.7%13.2%11.1%4.2%2.0%
3 Year67.4%54.8%84.0%73.2%47.2%37.6%
5 Year149.0%118.0%123.1%100.5%60.5%42.9%

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 based on future cash flows and its price relative to the stock market?

25%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

Taiwan Semiconductor Manufacturing is good value based on earnings compared to the US Semiconductor industry average.

Taiwan Semiconductor Manufacturing is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Taiwan Semiconductor Manufacturing is poor value based on expected growth next year.


Price Based on Value of Assets

Taiwan Semiconductor Manufacturing is overvalued based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

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

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Taiwan Semiconductor Manufacturing's revenue is expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).

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 growth is expected to exceed the United States of America market average.

Taiwan Semiconductor Manufacturing's earnings growth is expected to exceed the United States of America market average.

Taiwan Semiconductor Manufacturing's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Taiwan Semiconductor Manufacturing is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

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

7.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 US Semiconductor industry average.


Return on Equity

Taiwan Semiconductor Manufacturing has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Taiwan Semiconductor Manufacturing used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

Taiwan Semiconductor Manufacturing's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Taiwan Semiconductor Manufacturing's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Taiwan Semiconductor Manufacturing's level of debt (10.4%) 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 10.4% today).

Debt is well covered by operating cash flow (342.6%, greater than 20% of total debt).

Taiwan Semiconductor Manufacturing earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 6.2x debt.


Next Steps

Dividend

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

3.98%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Taiwan Semiconductor Manufacturing before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Taiwan Semiconductor Manufacturing's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Taiwan Semiconductor Manufacturing's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

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

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).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

C. Wei 0

1.3yrs

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

C.'s remuneration is lower than average for companies of similar size in United States of America.

C.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.0yrs

Average Tenure

The tenure for the Taiwan Semiconductor Manufacturing management team is about average.


Board Age and Tenure

6.3yrs

Average Tenure

72yo

Average Age

The tenure for the Taiwan Semiconductor Manufacturing board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • C. Wei

    Vice Chairman & CEO

    • Tenure: 1.3yrs
    • Compensation: NT$236.58m
  • Elizabeth Sun

    Senior Director of Corporate Communication Division

    • Tenure: 0yrs
  • Wei-Jen Lo

    Senior Vice President of Research & Development/Technology Development

    • Tenure: 0yrs
  • Rick Cassidy

    Senior Vice President of Corporate Strategy Office

    • Tenure: 5.6yrs
  • Wendell Huang

    VP & CFO

    • Tenure: 0yrs
  • Y. Chin

    Senior Vice President of Operations & Product Development

    • Tenure: 2.8yrs
  • J. Lin

    Senior Vice President of Information Technology and Materials Management & Risk Management

    • Tenure: 0.8yrs
  • J. Wang

    Senior Vice President of Operations/Fab Operations

    • Tenure: 0.8yrs
  • Sylvia Fang

    VP of Legal & General Counsel

    • Tenure: 0yrs
  • Connie Ma

    Vice President of Human Resources

    • Tenure: 5.1yrs

Board Members

  • Mike Splinter (69yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: NT$14.49m
  • Fan Tseng

    Director

    • Tenure: 22.3yrs
    • Compensation: NT$16.34m
  • C. Wei

    Vice Chairman & CEO

    • Tenure: 1.3yrs
    • Compensation: NT$236.58m
  • Mark Liu

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: NT$149.94m
  • Stan Shih (75yo)

    Independent Director

    • Tenure: 19.4yrs
    • Compensation: NT$12.00m
  • Peter Bonfield (75yo)

    Independent Director

    • Tenure: 17.3yrs
    • Compensation: NT$14.49m
  • Maria Marced (65yo)

    President of TSMC Europe BV and Director of TSMC Europe BV

    • Tenure: 0yrs
  • Kok-Choo Chen

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: NT$12.00m
  • Makoto Onodera

    President of TSMC Japan Limited and Director of TSMC Japan Limited

    • Tenure: 0yrs
  • Mei-Ling Chen

    Director

    • Tenure: 1.8yrs
    • Compensation: NT$9.60m

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: TSM
  • Exchange: NYSE
  • Founded: 1987
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: NT$6.807t
  • Listing Market Cap: NT$220.168b
  • 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
  • 300-78
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2330TSEC (Taiwan Stock Exchange)YesCommon SharesTWTWDOct 1994
TSMNYSE (New York Stock Exchange)ADS EACH REPR 5 SHSUSUSDOct 1997
TSM NBMV (Bolsa Mexicana de Valores)ADS EACH REPR 5 SHSMXMXNOct 1997
TSFADB (Deutsche Boerse AG)ADS EACH REPR 5 SHSDEEUROct 1997
TSFAWBAG (Wiener Boerse AG)ADS EACH REPR 5 SHSATEUROct 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 semicon ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 23:44
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.