Taiwan Semiconductor Manufacturing Co Ltd

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TSM : NYSE : Technology
$32.81 up 0.25 | 0.77%
Today's Range: 32.61 - 33.1
Avg. Daily Volume: 6474600.0
03/24/17 - 4:01 PM ET

Financial Analysis

TAIWAN SEMICONDUCTOR MFG CO's gross profit margin for the fourth quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. TAIWAN SEMICONDUCTOR MFG CO is extremely liquid. Currently, the Quick Ratio is 2.39 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 15.08% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)7328.636319.17
EBITDA ($mil)0.04157.89
EBIT ($mil)3093.782413.04
Net Income ($mil)2831.562262.39

Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)19509.5417876.21
Total Assets ($mil)58223.9250549.51
Total Debt ($mil)7690.197776.43
Equity ($mil)42878.0337257.45

Profitability Q4 FY16 Q4 FY15
Gross Profit Margin52.5974.05
EBITDA Margin0.065.79
Operating Margin42.2238.19
Sales Turnover0.50.51
Return on Assets17.7118.49
Return on Equity24.0525.09
Debt Q4 FY16 Q4 FY15
Current Ratio2.573.52
Interest Expense22.2625.43
Interest Coverage138.9894.9

Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)5186.085186.08
Div / share0.00.0
Book value / share8.277.18
Institutional Own % n/a n/a
Avg Daily Volume6428517.06235730.0


BUY. TAIWAN SEMICONDUCTOR MFG CO's P/E ratio indicates a significant discount compared to an average of 30.20 for the Semiconductors & Semiconductor Equipment industry and a significant discount compared to the S&P 500 average of 26.73. To use another comparison, its price-to-book ratio of 3.92 indicates a premium versus the S&P 500 average of 2.98 and a discount versus the industry average of 4.80. The price-to-sales ratio is well above both the S&P 500 average and 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 16.29 Peers 30.20   TSM 10.09 Peers 17.43

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 14.00 Peers 20.47   TSM 1.66 Peers 1.53

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.


Average. 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 valuation on par to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TSM 3.92 Peers 4.80   TSM 10.55 Peers -4.55

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 discount to its peers.


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

TSM is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TSM 5.74 Peers 4.71   TSM 13.73 Peers 21.81

Premium. 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 premium to its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

TSM significantly trails its peers on the basis of sales growth



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