Taiwan Semiconductor Stock Analysis, Valuation (NYSE:TSM)
Taiwan Semiconductor Stock Analysis
Take a look at Amigobulls Taiwan Semiconductor stock analysis video. Our TSM analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Taiwan Semiconductor Mfg. Co. Ltd. (ADR) Stock Rating 4/5
We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for TSM stock analysis. Taiwan Semiconductor valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Taiwan Semiconductor stock rating encapsulates our opinion about the company based on the fundamentals.
Should you buy TSM stock?
- The TTM operating margin was good at 40.1% for Taiwan Semiconductor.
- Net margins stood at a healthy 34.8% (average) for Taiwan Semiconductor in the Trailing Twelve Months.
- Taiwan Semiconductor has a lower debt burden than its peers in the Computer and Technology sector, with a debt/equity ratio of 0.12.
- The company has an operating cash flow which is 1.8 times the net income. We see this as a positive signal.
- TSM stock is trading at an earnings multiple of 17.3 which is better than the industry average of 25.1.
- Taiwan Semiconductor's return on invested capital of 32.5% is good.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Taiwan Semiconductor at 23.5%.
- Taiwan Semiconductor has a healthy FCF (Free Cash Flow) margin of 36%.
Should you sell TSM stock?
- TSM stock is trading at a PS multiple of 6, which is a negative when compared to the Semiconductor fabricator foundries industry average multiple of 2.9.
Investors can make use of the Amigobulls Taiwan Semiconductor stock analysis to ascertain how TSM stock fares in fundamental analysis investment criteria. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
Among the financials of the company, Taiwan Semiconductor revenue growth along with the profit or net income give a clear picture of the financial health. One can also combine technical analysis and fundamental analysis to get a holistic picture about TSM stock.