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TSMC (TSM) Stock Analysis

This is a peer-relative look at TSMC (TSM): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Semiconductors & Semiconductor Equipment peers, so every number reads in context rather than in isolation.

Company Profile

TSMC (TSM) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile fields for TSMC (TSM)
Profile ItemTSM
NameTaiwan Semiconductor Manufacturing Co. Ltd. ADR
Country/RegionTaiwan
GICS SectorInformation Technology
GICS Industry GroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
GICS Sub-IndustrySemiconductors
Market Capitalization2,202.23 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateOctober 9, 1997
Security TypeADR

Price Performance

Cumulative Growth

TSM
GSPC
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TSMC (TSM) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for TSMC (TSM) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for TSMC (TSM) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

TSMC (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: TSMIndustry group median
Total Return (1Y)79.74%79.34%
Total Return (3Y, Annualized)65.77%26.47%
Total Return (5Y, Annualized)31.34%17.34%

Risk Profile

Drawdown History

TSM
GSPC
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TSMC (TSM) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for TSMC (TSM) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

TSMC (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: TSMIndustry group median
Volatility (1Y, Annualized)39.80%68.86%
Beta (5Y)1.381.78
Max Drawdown (5Y)-56.47%-64.81%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. TSM is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

TSMC (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: TSMIndustry group median
Sharpe Ratio (1Y)1.901.21
Sortino Ratio (1Y)2.952.08

Profitability

ROE (TTM)

TSMC (TSM) posts ROE of 39.97%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

TSM

Semiconductors & Semiconductor Equipment industry group

39.97%

Group distribution
TSM
39.97%
Max
39.97%
Q3
17.11%
Median
6.75%
Q1
-4.17%
Min
-35.15%
Largest peers
NVDA
114.29%
MU
66.64%
ASML
53.94%
TSM
39.97%
AVGO
37.28%
AMD
8.06%
INTC
-2.91%
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Where TSMC (TSM) stands on ROE within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

TSMC (TSM) keeps 49.92% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

TSM

Semiconductors & Semiconductor Equipment industry group

49.92%

Group distribution
Max
57.72%
TSM
49.92%
Q3
21.04%
Median
7.16%
Q1
-3.57%
Min
-32.92%
Largest peers
NVDA
62.97%
MU
55.91%
TSM
49.92%
AVGO
38.85%
ASML
30.11%
AMD
13.37%
INTC
-5.90%
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Where TSMC (TSM) stands on net margin within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

TSMC (TSM) turns 60.34% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

TSM

Semiconductors & Semiconductor Equipment industry group

60.34%

Group distribution
Max
61.85%
TSM
60.34%
Q3
21.10%
Median
10.43%
Q1
-6.83%
Min
-46.64%
Largest peers
MU
80.37%
NVDA
65.60%
TSM
60.34%
AVGO
48.99%
ASML
37.06%
AMD
14.40%
INTC
6.88%
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Where TSMC (TSM) stands on operating margin within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

TSMC (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: TSMIndustry group median
ROE (TTM)39.97%6.75%
ROA (TTM)19.01%3.59%
Net Margin (TTM)49.92%7.16%
Operating Margin (TTM)60.34%10.43%
Gross Margin (TTM)64.23%46.65%

Growth

Revenue Growth

TSMC (TSM) grew revenue 31.61%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.

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TSMC (TSM): Revenue Growth across different time periods, set against Semiconductors & Semiconductor Equipment industry-group medians.

EPS Growth

TSMC (TSM) grew earnings per share 44.69%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.

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TSMC (TSM): EPS Growth across different time periods, set against Semiconductors & Semiconductor Equipment industry-group medians.

Growth Metrics

TSMC (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: TSMIndustry group median
Revenue Growth (YoY)31.61%9.94%
Revenue Growth (3Y CAGR)18.94%-0.00%
EPS Growth (YoY)44.69%4.52%
EPS Growth (3Y CAGR)18.65%-10.01%

Financial Strength

Current Ratio (MRQ)

TSMC (TSM) has current ratio of 2.46, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

TSM

Semiconductors & Semiconductor Equipment industry group

2.46

Group distribution
Max
11.30
Q3
6.01
Median
3.31
TSM
2.46
Q1
2.40
Min
0.51
Largest peers
NVDA
3.44
MU
3.43
AMD
2.73
TSM
2.46
INTC
2.31
AVGO
2.24
ASML
1.33
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Where TSMC (TSM) stands on current ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

TSMC (TSM) has debt-to-equity ratio of 0.15, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

TSM

Semiconductors & Semiconductor Equipment industry group

0.15

Group distribution
Max
1.44
Q3
0.63
Median
0.23
TSM
0.15
Q1
0.05
Min
0.00
Largest peers
AVGO
0.74
INTC
0.36
TSM
0.15
ASML
0.09
NVDA
0.07
MU
0.06
AMD
0.06
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Where TSMC (TSM) stands on debt-to-equity ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

TSMC (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: TSMIndustry group median
Current Ratio (MRQ)2.463.31
Debt / Equity (MRQ)0.150.23
Net Debt / EBITDA-0.80-0.29

Dividends

Dividend Yield (TTM)

TSMC (TSM) has dividend yield of 2.98%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

TSM

Semiconductors & Semiconductor Equipment industry group

2.98%

Group distribution
TSM
2.98%
Max
0.58%
Q3
0.26%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
TSM
2.98%
AVGO
0.67%
ASML
0.25%
MU
0.06%
NVDA
0.02%
AMD
0.00%
INTC
0.00%
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Where TSMC (TSM) stands on dividend yield within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

TSMC (TSM) has payout ratio of 27.93%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

TSM

Semiconductors & Semiconductor Equipment industry group

27.93%

Group distribution
Max
47.82%
TSM
27.93%
Q3
20.31%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
AVGO
41.26%
ASML
29.72%
TSM
27.93%
MU
1.12%
NVDA
0.61%
AMD
0.00%
INTC
0.00%
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Where TSMC (TSM) stands on payout ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

TSMC (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: TSMIndustry group median
Dividend Yield (TTM)2.98%0.00%
Dividend Payout Ratio (TTM)27.93%0.00%

Valuation

P/E Ratio (TTM)

TSMC (TSM) trades at P/E ratio of 34.98, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.

TSM

Semiconductors & Semiconductor Equipment industry group

34.98

Group distribution
Max
239.97
Q3
120.44
Median
60.23
Q1
38.22
TSM
34.98
Min
10.70
Largest peers
AMD
166.49
AVGO
62.85
ASML
60.23
TSM
34.98
NVDA
31.17
MU
19.57
INTC
--
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Where TSMC (TSM) stands on P/E ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

TSMC (TSM) trades at 0.50 on P/S ratio, in the lower sales-valuation quartile for its industry. That points to a cheaper revenue stream than most peers, with margin quality still doing the heavy lifting.

TSM

Semiconductors & Semiconductor Equipment industry group

0.50

Group distribution
Max
38.55
Q3
19.36
Median
9.29
Q1
3.87
TSM
0.50
Min
0.01
Largest peers
AVGO
24.37
AMD
23.70
NVDA
19.81
ASML
19.59
MU
12.15
INTC
9.86
TSM
0.50
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Where TSMC (TSM) stands on P/S ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

TSMC (TSM) trades at 88.45 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

TSM

Semiconductors & Semiconductor Equipment industry group

88.45

Group distribution
TSM
88.45
Max
22.39
Q3
11.52
Median
7.03
Q1
3.43
Min
0.18
Largest peers
ASML
1,621.71
TSM
88.45
NVDA
25.69
AVGO
20.97
AMD
13.77
MU
10.88
INTC
4.75
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Where TSMC (TSM) stands on P/B ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

TSMC (TSM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: TSMIndustry group median
P/E Ratio (TTM)34.9860.23
P/S Ratio (TTM)0.509.29
P/B Ratio (MRQ)88.457.03
Free Cash Flow Yield (TTM)33.56%0.77%