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TSM

Taiwan Semiconductor ManufacturingNYSE:TSM Stock Report

Last Price

NT$124.53

Market Cap

NT$600.0b

7D

-11.5%

1Y

-3.6%

Updated

21 Jan, 2022

Data

Company Financials +
TSM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance5/6
Financial Health5/6
Dividends5/6

TSM Stock Overview

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

Taiwan Semiconductor Manufacturing Competitors

Broadcom

NasdaqGS:AVGO

US$220.2b

Intel

NasdaqGS:INTC

US$211.6b

Analog Devices

NasdaqGS:ADI

US$83.8b

GLOBALFOUNDRIES

NasdaqGS:GFS

US$27.4b

Price History & Performance

Summary of all time highs, changes and price drops for Taiwan Semiconductor Manufacturing
Historical stock prices
Current Share PriceNT$124.53
52 Week HighNT$145.00
52 Week LowNT$107.58
Beta1.02
1 Month Change2.66%
3 Month Change9.02%
1 Year Change-3.57%
3 Year Change226.51%
5 Year Change298.50%
Change since IPO2,166.77%

Recent News & Updates

Jan 14

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.

Jan 07

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.

Jan 01

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.

Dec 03

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.

Oct 23

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.

Shareholder Returns

TSMUS SemiconductorUS Market
7D-11.5%-12.1%-6.1%
1Y-3.6%15.6%4.2%

Return vs Industry: TSM underperformed the US Semiconductor industry which returned 15.7% over the past year.

Return vs Market: TSM underperformed the US Market which returned 6.6% over the past year.

Price Volatility

Is TSM's price volatile compared to industry and market?
TSM volatility
TSM Average Weekly Movement5.2%
Semiconductor Industry Average Movement7.8%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
1987n/aC. C. Weihttps://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

How do Taiwan Semiconductor Manufacturing's earnings and revenue compare to its market cap?
TSM fundamental statistics
Market CapNT$16.62t
Earnings (TTM)NT$573.07b
Revenue (TTM)NT$1.51t

29.0x

P/E Ratio

11.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TSM income statement (TTM)
RevenueNT$1.51t
Cost of RevenueNT$726.71b
Gross ProfitNT$784.05b
ExpensesNT$210.97b
EarningsNT$573.07b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)22.10
Gross Margin51.90%
Net Profit Margin37.93%
Debt/Equity Ratio28.0%

How did TSM perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

49%

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 DateMar 16 2022
Dividend Pay DateApr 14 2022
Days until Ex dividend53 days
Days until Dividend pay date82 days

Does TSM pay a reliable dividends?

See TSM dividend history and benchmarks

Valuation

Is Taiwan Semiconductor Manufacturing undervalued compared to its fair value and its price relative to the market?

21.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TSM ($124.53) is trading below our estimate of fair value ($158.44)

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 (29x) compared to the US Semiconductor industry average (28.1x).

PE vs Market: TSM is poor value based on its PE Ratio (29x) compared to the US market (16.7x).


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 (8x) compared to the US Semiconductor industry average (4.1x).


Future Growth

How is Taiwan Semiconductor Manufacturing forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?

16.1%

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 (9.2% 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%)


Past Performance

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

11.8%

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.


Financial Health

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.


Balance Sheet


Dividend

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

1.72%

Current Dividend Yield


Upcoming Dividend Payment

TodayJan 22 2022Ex Dividend DateMar 16 2022Dividend Pay DateApr 14 202229 days from Ex DividendBuy in the next 53 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: TSM's dividend (1.72%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: TSM's dividend (1.72%) is low compared to the top 25% of dividend payers in the US market (3.55%).


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).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

C. C. Wei

3.58yrs

Tenure

NT$218,772,931

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 ($USD7.90M) is below average for companies of similar size in the US market ($USD11.42M).

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 (3.6 years average tenure).


Board Members

Experienced Board: TSM's board of directors are considered experienced (4.6 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$16.621t
  • Listing Market Cap: NT$599.985b
  • 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
  • 300-78
  • Taiwan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:38
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.