TSM Stock Overview
Taiwan Semiconductor Manufacturing Company Limited manufactures and sells integrated circuits and semiconductors.
No risks detected for TSM from our risk checks.
Taiwan Semiconductor Manufacturing Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||NT$128.33|
|52 Week High||NT$145.00|
|52 Week Low||NT$107.58|
|1 Month Change||9.27%|
|3 Month Change||12.34%|
|1 Year Change||-4.35%|
|3 Year Change||240.94%|
|5 Year Change||312.50%|
|Change since IPO||2,235.94%|
Recent News & Updates
Taiwan Semiconductor: Should You Buy This Stock After Its Recent Results?
TSMC reported a very good quarter, showing good operating momentum that is not expected to slow down in the near future. Taiwan Semiconductor also upgraded capex for 2022 and revised medium-term revenue growth target to a range of 15-20%, which are positive signs regarding the business fundamentals. TSM stock is trading at 27x forward earnings, which seems undemanding for a company exposed to secular growth trends.
Misunderstood Risks Make Taiwan Semiconductor Manufacturing Company Cheap
TSMC is a wonderful company trading at a very attractive price. The company has two main headwinds keeping its multiple low, one is about to change and the other is overblown in my opinion. I’m a buyer of TSMC.
Taiwan Semiconductor: A 2022 Outlook
A number of macro tailwinds will continue to push demand through 2022 across high performance computing, automotive, and IoT. While inventory correction and geopolitical risks are valid, they remain minimal in the short term. Valuations continue to support investment opportunities for adding shares.
Taiwan Semiconductor: The Obvious Play Is Often The Right Play
TSMC has a technological lead over its competitors in a market exploding in size. TSMC is the dominant producer with more than 50% market share and 90% in some areas. TSMC is planning a $100 billion investment in production facilities, no other company will match this.
Taiwan Semiconductor: Inventory Is Not The Same It Once Was
Semiconductor weakness into 2022 is predicated on industry inventory level checks. However, the historical reasons for elevated inventory and current inventory levels aren't the same. Just-in-time ordering is not viable with shipping costs up 300% and causes inventory levels to appear elevated. This is presenting an opportunity in stocks like Taiwan Semiconductor where the bearish outcome is baked in.
|TSM||US Semiconductor||US Market|
Return vs Industry: TSM underperformed the US Semiconductor industry which returned 22.2% over the past year.
Return vs Market: TSM underperformed the US Market which returned 7.7% over the past year.
|TSM Average Weekly Movement||5.2%|
|Semiconductor Industry Average Movement||7.7%|
|Market Average Movement||6.6%|
|10% most volatile stocks in US Market||15.7%|
|10% least volatile stocks in US Market||2.4%|
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||n/a||C. C. Wei||https://www.tsmc.com|
Taiwan Semiconductor Manufacturing Company Limited manufactures and sells integrated circuits and semiconductors. It also offers customer service, account management, and engineering services. The company serves customers in computer, communications, consumer, and industrial and standard segments in North America, Europe, Japan, China, and South Korea.
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$726.71b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||22.10|
|Net Profit Margin||37.93%|
How did TSM perform over the long term?See historical performance and comparison
1.7%Current Dividend Yield
Does TSM pay a reliable dividends?See TSM dividend history and benchmarks
|Taiwan Semiconductor Manufacturing dividend dates|
|Ex Dividend Date||Mar 16 2022|
|Dividend Pay Date||Apr 14 2022|
|Days until Ex dividend||53 days|
|Days until Dividend pay date||82 days|
Does TSM pay a reliable dividends?See TSM dividend history and benchmarks
Is Taiwan Semiconductor Manufacturing undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TSM ($128.33) is trading below our estimate of fair value ($160.46)
Significantly Below Fair Value: TSM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TSM is poor value based on its PE Ratio (29.5x) compared to the US Semiconductor industry average (28.7x).
PE vs Market: TSM is poor value based on its PE Ratio (29.5x) compared to the US market (16.9x).
Price to Earnings Growth Ratio
PEG Ratio: TSM is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: TSM is overvalued based on its PB Ratio (8.1x) compared to the US Semiconductor industry average (4.2x).
How is Taiwan Semiconductor Manufacturing forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TSM's forecast earnings growth (16.1% per year) is above the savings rate (2%).
Earnings vs Market: TSM's earnings (16.1% per year) are forecast to grow faster than the US market (13.1% per year).
High Growth Earnings: TSM's earnings are forecast to grow, but not significantly.
Revenue vs Market: TSM's revenue (16% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: TSM's revenue (16% 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 (29.5%)
How has Taiwan Semiconductor Manufacturing performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TSM has high quality earnings.
Growing Profit Margin: TSM's current net profit margins (37.9%) are higher than last year (37.9%).
Past Earnings Growth Analysis
Earnings Trend: TSM's earnings have grown by 11.8% per year over the past 5 years.
Accelerating Growth: TSM's earnings growth over the past year (16.7%) exceeds its 5-year average (11.8% per year).
Earnings vs Industry: TSM earnings growth over the past year (16.7%) underperformed the Semiconductor industry 80.5%.
Return on Equity
High ROE: TSM's Return on Equity (27.6%) is considered high.
How is Taiwan Semiconductor Manufacturing's financial position?
Financial Position Analysis
Short Term Liabilities: TSM's short term assets (NT$1,370.6B) exceed its short term liabilities (NT$655.6B).
Long Term Liabilities: TSM's short term assets (NT$1,370.6B) exceed its long term liabilities (NT$598.4B).
Debt to Equity History and Analysis
Debt Level: TSM has more cash than its total debt.
Reducing Debt: TSM's debt to equity ratio has increased from 17.3% to 28% over the past 5 years.
Debt Coverage: TSM's debt is well covered by operating cash flow (170.6%).
Interest Coverage: TSM earns more interest than it pays, so coverage of interest payments is not a concern.
What is Taiwan Semiconductor Manufacturing current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: TSM's dividend (1.69%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: TSM's dividend (1.69%) is low compared to the top 25% of dividend payers in the US market (3.49%).
Stability and Growth of Payments
Stable Dividend: TSM's dividends per share have been stable in the past 10 years.
Growing Dividend: TSM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (48.6%), TSM's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TSM's dividends in 3 years are forecast to be well covered by earnings (35.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
C. C. Wei
Dr. C. C. Wei serves as CEO & Vice Chairman of Taiwan Semiconductor Manufacturing Company Ltd since June 05, 2018. He was a Co-Chief Executive Officer and President of Taiwan Semiconductor Manufacturing Co...
CEO Compensation Analysis
Compensation vs Market: C. C.'s total compensation ($USD7.92M) is about average for companies of similar size in the US market ($USD11.31M).
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 (3.6 years average tenure).
Experienced Board: TSM's board of directors are considered experienced (4.6 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$16.881t
- Listing Market Cap: NT$610.933b
- 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||2022/01/20 23:56|
|End of Day Share Price||2022/01/20 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.