Taiwan Semiconductor Manufacturing Co Ltd

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TSM : NYSE : Technology
$35.51 -0.06 | -0.17%
Today's Range: 35.33 - 35.58
Avg. Daily Volume: 5901200.0
05/26/17 - 4:01 PM ET

Financial Analysis


TAIWAN SEMICONDUCTOR MFG CO's gross profit margin for the first quarter of its fiscal year 2017 has increased 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 2.39 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 20.45% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)7699.626323.66
EBITDA ($mil)5118.343925.8
EBIT ($mil)3137.692190.34
Net Income ($mil)2884.432013.1


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)21702.5520149.08
Total Assets ($mil)63682.1553652.13
Total Debt ($mil)7695.657742.2
Equity ($mil)47910.2539775.42


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin75.4670.12
EBITDA Margin66.4762.08
Operating Margin40.7534.64
Sales Turnover0.480.46
Return on Assets17.4416.46
Return on Equity23.1822.21
Debt Q1 FY17 Q1 FY16
Current Ratio2.573.44
Debt/Capital0.140.16
Interest Expense26.8826.43
Interest Coverage116.7282.87


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)5186.085186.08
Div / share0.00.0
EPS0.560.39
Book value / share9.247.67
Institutional Own % n/a n/a
Avg Daily Volume5822423.06403387.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 27.49 for the Semiconductors & Semiconductor Equipment industry and a discount compared to the S&P 500 average of 25.02. To use another comparison, its price-to-book ratio of 3.78 indicates a premium versus the S&P 500 average of 3.00 and a discount versus the industry average of 4.91. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TSM 16.31 Peers 27.49   TSM 9.86 Peers 17.49

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TSM 14.85 Peers 20.43   TSM 1.40 Peers 1.12

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 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TSM 3.78 Peers 4.91   TSM 25.88 Peers 8.74

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TSM 5.91 Peers 4.89   TSM 22.82 Peers 27.09

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 trails its peers on the basis of sales growth

 

 

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