TSM Stock Analysis: Taiwan Semiconductor | NYSE
Semiconductors | NYSE, USA | Market Cap: 2.189.989m USD | 12M Return: 42.5% | US8740391003 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 4.60B
EPS Trend: 99.5%
Qual. Beats: 7
Rev. Trend: 99.5%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Taiwan Semiconductor Manufacturing Company (TSM) is a global semiconductor foundry that manufactures, packages, tests, and sells integrated circuits and other semiconductor devices across Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and other international markets. The company offers a range of wafer fabrication processes, including CMOS logic, mixed-signal, radio frequency, embedded memory, and bipolar CMOS mixed-signal technologies. Beyond core manufacturing, TSMC provides customer and engineering support, mask manufacturing, research into color filter technology, and investments in technology start-ups.
Its chips end up in high-performance computing, smartphones, Internet of Things devices, automotive electronics, and digital consumer products. TSMC was founded in 1987 and is headquartered in Hsinchu City, Taiwan, and trades on the NYSE as a mega-cap stock within the GICS Information Technology / Semiconductors sub-industry. As a pure-play foundry, the company manufactures chips designed by its customers (such as fabless semiconductor firms) rather than selling its own branded chips, which is the defining feature of the foundry business model.
- AI demand drives N3 and N5 wafer revenue growth
- US export curbs limit advanced chip sales to China
- Arizona fab capex rises on US manufacturing push
| Net Income: 2242b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA -0.95 > 1.0 |
| NWC/Revenue: 60.85% < 20% (prev 55.50%; Δ 5.35% < -1%) |
| CFO/TA 0.28 > 3% & CFO 2651b > Net Income 2242b |
| Net Debt (-2416b) to EBITDA (3198b): -0.76 < 3 |
| Current Ratio: 2.46 > 1.5 & < 3 |
| Outstanding Shares: last quarter (5.19b) vs 12m ago 0.01% < -2% |
| Gross Margin: 64.23% > 18% (prev 58.58%; Δ 5.64% > 0.5%) |
| Asset Turnover: 54.33% > 50% (prev 48.54%; Δ 5.79% > 0%) |
| Interest Coverage Ratio: 280.3 > 6 (EBIT TTM 2507b / Interest Expense TTM 8.94b) |
| A: 0.29 (Total Current Assets 4566b - Total Current Liabilities 1858b) / Total Assets 9376b |
| B: 0.61 (Retained Earnings 5740b / Total Assets 9376b) |
| C: 0.31 (EBIT TTM 2507b / Avg Total Assets 8191b) |
| D: 2.22 (Book Value of Equity 6433b / Total Liabilities 2901b) |
| Altman-Z'' = 8.28 = AAA |
| DSRI: 1.41 (Receivables 441b/238b, Revenue 4450b/3401b) |
| GMI: 0.91 (GM 58.58% / 64.23%) |
| AQI: 1.22 (AQ_t 0.05 / AQ_t-1 0.04) |
| SGI: 1.31 (Revenue 4450b / 3401b) |
| TATA: -0.04 (NI 2242b - CFO 2651b) / TA 9376b) |
| Beneish M = -2.42 (Cap -4..+1) = BBB |
As of October 20, 2026, the stock is trading at USD 420.22 with a total of 12,307,572 shares traded. Over the past week, the price has changed by -5.43%, over one month by -5.60%, over three months by +4.74% and over the past year by +42.48%.
Current recommended Stop Loss: 404.10 (which is 3.8% or 1.3 ATR below the current price).
Taiwan Semiconductor has received a consensus analysts rating of 4.62. Therefore, it is recommended to buy TSM.
- StrongBuy: 14
- Buy: 6
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 584.4 | 39.1% |
Market Cap TWD = 71124b (2190b USD * 32.477 USD.TWD)
P/E Trailing = 27.3655
P/E Forward = 21.4133
P/S = 0.4932
P/B = 11.6035
P/EG = 0.8581
Revenue TTM = 4450b TWD
EBIT TTM = 2507b TWD
EBITDA TTM = 3198b TWD
Long Term Debt = 815b TWD (from longTermDebt, last quarter)
Short Term Debt = 171b TWD (from shortTermDebt, last quarter)
Debt = 1102b TWD (from shortLongTermDebtTotal, last quarter) + Leases 33.3b
Net Debt = -2416b TWD (calculated: Debt 1102b - CCE 3518b)
Enterprise Value = 68708b TWD (71124b + Debt 1102b - CCE 3518b)
Interest Coverage Ratio = 280.3 (Ebit TTM 2507b / Interest Expense TTM 8.94b)
EV/FCF = 59.32x (Enterprise Value 68708b / FCF TTM 1158b)
FCF Yield = 1.69% (FCF TTM 1158b / Enterprise Value 68708b)
FCF Margin = 26.03% (FCF TTM 1158b / Revenue TTM 4450b)
Net Margin = 50.37% (Net Income TTM 2242b / Revenue TTM 4450b)
Gross Margin = 64.23% ((Revenue TTM 4450b - Cost of Revenue TTM 1592b) / Revenue TTM)
Gross Margin QoQ = 67.72% (prev 66.25%)
Tobins Q-Ratio = 7.33 (Enterprise Value 68708b / Total Assets 9376b)
Interest Expense / Debt = 0.81% (Interest Expense 8.94b / Debt 1102b)
Taxrate = 16.16% (432b / 2674b)
NOPAT = 2102b (EBIT 2507b * (1 - 16.16%))
Current Ratio = 2.46 (Total Current Assets 4566b / Total Current Liabilities 1858b)
Debt / Equity = 0.17 (Debt 1102b / totalStockholderEquity, last quarter 6433b)
Debt / EBITDA = -0.76 (Net Debt -2416b / EBITDA 3198b)
Debt / FCF = -2.09 (Net Debt -2416b / FCF TTM 1158b)
Total Stockholder Equity = 5681b (last 4 quarters mean from totalStockholderEquity)
RoA = 27.37% (Net Income 2242b / Total Assets 9376b)
RoE = 39.46% (Net Income TTM 2242b / Total Stockholder Equity 5681b)
RoCE = 38.60% (EBIT 2507b / Capital Employed (Equity 5681b + L.T.Debt 815b))
RoIC = 28.16% (NOPAT 2102b / Invested Capital 7466b)
WACC = 11.73% (E(71124b)/V(72226b) * Re(11.90%) + D(1102b)/V(72226b) * Rd(0.81%) * (1-Tc(0.16)))
Discount Rate = 11.90% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 46.53 | Cagr: 0.00%
[DCF] Terminal Value 67.85% ; FCFF base≈1068b ; Y1≈1224b ; Y5≈1802b
[DCF] Fair Price = 3.73k (EV 16939b - Net Debt -2416b = Equity 19355b / Shares 5.19b; r=11.73% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.50 | EPS CAGR: 51.90% | SUE: 1.12 | # QB: 7
Revenue Correlation: 99.47 | Revenue CAGR: 32.78% | SUE: 0.02 | # QB: 0
EPS current Quarter (2027-03-31): EPS=5.19 | Chg30d=+4.56% | Revisions=+40% | Analysts=10
EPS current Year (2026-12-31): EPS=17.47 | Chg30d=+3.21% | Revisions=+50% | GrowthEPS=+64.0% | GrowthRev=+46.5%
EPS next Year (2027-12-31): EPS=23.01 | Chg30d=+4.98% | Revisions=+50% | GrowthEPS=+31.7% | GrowthRev=+36.2%
[Analyst] Revisions Ratio: +73% (up=8, down=0)