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Taiwan Semiconductor Manufacturing Co Ltd
TSM : NYSE : Technology
$22.09 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 14,026,600
10/12/15 - 4:01 PM ET

Financial Analysis

TAIWAN SEMICONDUCTOR MFG CO's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. TAIWAN SEMICONDUCTOR MFG CO is extremely liquid. Currently, the Quick Ratio is 2.11 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 17.66% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY15 Q2 FY14
Net Sales ($mil)6735.76221.75
EBITDA ($mil)4320.163974.1
EBIT ($mil)2530.572408.25
Net Income ($mil)2601.292029.13

Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)17822.2410532.09
Total Assets ($mil)52100.1645029.96
Total Debt ($mil)6743.978247.73
Equity ($mil)34539.5229353.42

Profitability Q2 FY15 Q2 FY14
Gross Profit Margin73.1372.85
EBITDA Margin64.1363.87
Operating Margin37.5738.71
Sales Turnover0.520.48
Return on Assets18.9614.91
Return on Equity28.622.88
Debt Q2 FY15 Q2 FY14
Current Ratio2.361.86
Interest Expense25.6727.34
Interest Coverage98.688.09

Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)5185.725185.88
Div / share0.720.0
Book value / share6.665.66
Institutional Own % n/a n/a
Avg Daily Volume1.3912988E71.2494469E7


BUY. The current P/E ratio indicates a significant discount compared to an average of 24.97 for the Semiconductors & Semiconductor Equipment industry and a discount compared to the S&P 500 average of 21.21. To use another comparison, its price-to-book ratio of 3.34 indicates a premium versus the S&P 500 average of 2.68 and a discount versus the industry average of 4.50. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, TAIWAN SEMICONDUCTOR MFG CO proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TSM 11.65 Peers 24.97   TSM 7.18 Peers 15.14

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

TSM is trading at a significant discount to its peers.


Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

TSM is trading at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
TSM 12.75 Peers 17.88   TSM 0.85 Peers 0.73

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

TSM is trading at a significant discount to its peers.


Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

TSM trades at a premium to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TSM 3.34 Peers 4.50   TSM 49.21 Peers 47.09

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

TSM is trading at a significant discount to its peers.


Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

TSM is expected to keep pace with its peers on the basis of earnings growth.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TSM 4.29 Peers 3.94   TSM 25.26 Peers 12.62

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

TSM is trading at a valuation on par with its industry on this measurement.


Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

TSM has a sales growth rate that significantly exceeds its peers.



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