NYSE:TSM

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Taiwan Semiconductor Manufacturing

Executive Summary

Taiwan Semiconductor Manufacturing Company Limited manufactures and sells integrated circuits and semiconductors. More Details


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


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: TSM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.3%

TSM

1.0%

US Semiconductor

0.08%

US Market


1 Year Return

82.1%

TSM

36.5%

US Semiconductor

12.8%

US Market

Return vs Industry: TSM exceeded the US Semiconductor industry which returned 36.5% over the past year.

Return vs Market: TSM exceeded the US Market which returned 12.8% over the past year.


Shareholder returns

TSMIndustryMarket
7 Day-0.3%1.0%0.08%
30 Day2.4%-2.0%-1.8%
90 Day41.3%7.7%7.2%
1 Year86.3%82.1%39.0%36.5%15.3%12.8%
3 Year134.8%116.4%81.3%71.9%39.2%29.9%
5 Year368.6%308.7%243.8%210.0%88.3%67.1%

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?

25.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TSM ($80.23) is trading above our estimate of fair value ($39.58)

Significantly Below Fair Value: TSM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TSM is good value based on its PE Ratio (25.3x) compared to the US Semiconductor industry average (34.2x).

PE vs Market: TSM is poor value based on its PE Ratio (25.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: TSM is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: TSM is overvalued based on its PB Ratio (6.7x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

How is Taiwan Semiconductor Manufacturing forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TSM's forecast earnings growth (9.6% per year) is above the savings rate (2.2%).

Earnings vs Market: TSM's earnings (9.6% per year) are forecast to grow slower than the US market (23.1% per year).

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

Revenue vs Market: TSM's revenue (9.9% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: TSM's revenue (9.9% 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 (26.5%)


Next Steps

Past Performance

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

5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TSM has a high level of non-cash earnings.

Growing Profit Margin: TSM's current net profit margins (36.9%) are higher than last year (31.4%).


Past Earnings Growth Analysis

Earnings Trend: TSM's earnings have grown by 5.3% per year over the past 5 years.

Accelerating Growth: TSM's earnings growth over the past year (43.3%) exceeds its 5-year average (5.3% per year).

Earnings vs Industry: TSM earnings growth over the past year (43.3%) exceeded the Semiconductor industry 7.5%.


Return on Equity

High ROE: TSM's Return on Equity (26.4%) is considered high.


Next Steps

Financial Health

How is Taiwan Semiconductor Manufacturing's financial position?


Financial Position Analysis

Short Term Liabilities: TSM's short term assets (NT$860.0B) exceed its short term liabilities (NT$614.8B).

Long Term Liabilities: TSM's short term assets (NT$860.0B) exceed its long term liabilities (NT$112.7B).


Debt to Equity History and Analysis

Debt Level: TSM's debt to equity ratio (15.8%) is considered satisfactory.

Reducing Debt: TSM's debt to equity ratio has reduced from 20.4% to 15.8% over the past 5 years.

Debt Coverage: TSM's debt is well covered by operating cash flow (264.7%).

Interest Coverage: TSM 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 current dividend yield, its reliability and sustainability?

2.25%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: TSM's dividend (2.25%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: TSM's dividend (2.25%) is low compared to the top 25% of dividend payers in the US market (4.7%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57%), TSM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TSM's dividends in 3 years are forecast to be covered by earnings (51.5% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

C. Wei

2.25yrs

Tenure

NT$293,423,840

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 ($USD10.10M) is about average for companies of similar size in the US market ($USD11.35M).

Compensation vs Earnings: C.'s compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
C. Wei
Vice Chairman & CEO2.25yrsNT$293.42m0.028%
NT$ 109.8m
Jen-Chau Huang
VP & CFO1yrNT$16.93m0.0064%
NT$ 25.3m
Jeff Su
Deputy Director of Investor Relationsno datano datano data
Sylvia Fang
VP of Legalno datano data0.0043%
NT$ 17.1m
Elizabeth Sun
Senior Director of Corporate Communication Divisionno datano datano data
Connie Ma
Vice President of Human Resources6.08yrsno data0.00063%
NT$ 2.5m
Wei-Jen Lo
Senior Vice President of Research & Development/Technology Developmentno datano data0.0056%
NT$ 22.0m
Y. Chin
Senior Vice President of Operations & Product Development3.83yrsno data0.035%
NT$ 139.3m
Richard Cassidy
Senior Vice President of Corporate Strategy Office6.58yrsno datano data
J. Lin
Senior Vice President of Information Technology and Materials Management & Risk Management1.83yrsno data0.052%
NT$ 206.9m
J. Wang
Senior Vice President of Operations/Fab Operations1.83yrsno data0.011%
NT$ 42.0m
Y. Mii
Senior Vice President of Research & Development and Technology Development3.83yrsno data0.0039%
NT$ 15.3m

3.0yrs

Average Tenure

Experienced Management: TSM's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
C. Wei
Vice Chairman & CEO2.25yrsNT$293.42m0.028%
NT$ 109.8m
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 Director5.25yrsNT$14.82mno data
Moshe Gavrielov
Independent Director1.25yrsNT$8.45mno data
Fan Cheng Tseng
Director23.33yrsNT$9.60m0.13%
NT$ 529.1m
Mark Liu
Chairman of the Board2.25yrsNT$293.42m0.050%
NT$ 197.4m
Stan Shih
Independent Director20.42yrsNT$12.00m0.0058%
NT$ 22.9m
Peter Bonfield
Independent Director18.33yrsNT$14.82mno data
Ing-Jiunn Hai
Independent Director0.25yrno datano data
Kok-Choo Chen
Independent Director9.25yrsNT$12.00m0.000020%
NT$ 79.3k
Ming-Hsin Kung
Director0.17yrno datano data

3.8yrs

Average Tenure

70yo

Average Age

Experienced Board: TSM's board of directors are considered experienced (3.8 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: TSM
  • Exchange: NYSE
  • Founded: 1987
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: NT$11.513t
  • Listing Market Cap: NT$396.470b
  • 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 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
TSMBASE (Buenos Aires Stock Exchange)CEDEAR EA REP 3 ADS(REP 5 ORD TWD10)ARARSJul 2007

Biography

Taiwan Semiconductor Manufacturing Company Limited manufactures and sells integrated circuits and semiconductors. It also offers customer service, account management, and engineering services. The company ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/21 06:13
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
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.