Taiwan Semiconductor Stock Analysis, Valuation (NYSE:TSM)

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$44.97 $0.34 (0.75%) TSM stock closing price Mar 16, 2018 (Closing)
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Taiwan Semiconductor
Updated on : Mar 16, 2018
previous close
TSM 45.3 (0%)
NASDAQ 7481.7 (0%)
Closing Price On: Mar 15, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Semiconductor fabricator foundries
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
Compared to the industry
Operating Profit
Operating Margin:
Sector Average:
5 Quarter Net Profit
Net Margins
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
Net Income:
Dividend Yield
TSM dividend yield:
Operating Margins
Net Margins
Cash Flow
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
Industry PS :
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
Return on Equity:
Free Cash Flow Margin:
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Taiwan Semiconductor Stock Analysis

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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 4.1/5

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?

  • Taiwan Semiconductor had a healthy average operating margin of 39.5% over the last 4 quarters.
  • Net margins stood at a healthy 35.1% (average) for Taiwan Semiconductor in the Trailing Twelve Months.
  • The operating cash flow looks good at 2 times the net income.
  • The Taiwan Semiconductor stock currently trades at a price to earnings ratio of 20.7. We rate this as a positive, compared to the industry average of 25.5.
  • Taiwan Semiconductor has an attractive ROIC (Return on Invested Capital) of 32.2%
  • Taiwan Semiconductor has a good Return On Equity (ROE) of 24.3%.
  • The company has a good Free Cash Flow (FCF) margin of 50.8%.

Should you sell TSM stock?

  • TSM stock is trading at a PS multiple of 7.3, which is a negative when compared to the Semiconductor fabricator foundries industry average multiple of 2.6.

Comments on this video and Taiwan Semiconductor stock

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.