About Taiwan Semiconductor Manufactur
Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, 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 various wafer fabrication processes, such as processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others. The company also involved in providing customer and engineering support services; manufacturing of masks; investment in technology start-up companies; research, designing, developing, manufacturing, packaging, testing, and sale of color filters; and investment activities. Its products are used in high performance computing, smartphones, Internet of things, automotive, and digital consumer electronics. Taiwan Semiconductor Manufacturing Company Limited was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.
Taiwan Semiconductor Manufactur (TSM) is a Technology company in the Semiconductors industry with a market capitalisation of $2.5T. The stock trades at 35.27x trailing earnings and yields 0.89%.
- Sector
- Technology
- Industry
- Semiconductors
- Market cap
- $2.5T
- P/E ratio
- 35.27
- Forward P/E
- 21.57
- EPS (TTM)
- $13.41
- Revenue (TTM)
- $4.4T
- Free cash flow
- $730.8B
- Profit margin
- 49.9%
- Dividend yield
- 0.89%
- Beta
- 1.25
- Shares outstanding
- 5.2B
Financial health: Strong10/10
11 strengths, 0 concerns. No red flags against these benchmarks.
- Debt to equity: 0.20 (Strong, benchmark < 0.5) — Debt of 0.20x equity is conservative against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 0.0y (Strong, benchmark < 4 years) — Holds more cash than debt ($2.1T net cash).
- Current ratio: 2.51 (Strong, benchmark > 1.5) — Short-term assets cover 2.51x short-term liabilities, against Graham's 1.5x floor. It has improved over the last 4 years.
- Return on equity: 40.0% (Strong, benchmark > 15%) — Earns 40.0% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 64.2% (Strong, benchmark > 40%) — Keeps 64.2% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 49.9% (Strong, benchmark > 10%) — Turns 49.9% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $992.4B (Strong, benchmark positive) — Generated $992.4B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 36.0% (Strong, benchmark > 10%) — Revenue changed 36.0% year on year, comfortably past the > 10% mark.
- Earnings growth: 77.4% (Strong, benchmark > 10%) — Earnings changed 77.4% year on year, comfortably past the > 10% mark.
- PEG ratio: 0.86 (Strong, benchmark < 1) — At 0.86, the price looks cheap relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 25.7% (Strong, benchmark < 60%) — Pays out 25.7% of earnings as dividends, leaving room to keep paying.