Taiwan Semiconductor Manufacturing Co. Ltd.

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TSM : NYSE : Electronic Technology
$44.7 -0.13 | -0.29%
Today's Range: 44.25 - 44.845
Avg. Daily Volume: 6635700.0
03/21/18 - 4:02 PM ET

Financial Analysis

The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. TAIWAN SEMICONDUCTOR MFG CO is extremely liquid. Currently, the Quick Ratio is 2.15 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 22.47% 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 FY17 Q4 FY16
Net Sales ($mil)9901.997328.63
EBITDA ($mil)0.04649.11
EBIT ($mil)0.03093.91
Net Income ($mil)3537.172753.37

Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)21908.2319509.38
Total Assets ($mil)67201.7558219.03
Total Debt ($mil)3097.177690.84
Equity ($mil)51375.1741946.01

Profitability Q4 FY17 Q4 FY16
Gross Profit Margin0.072.02
EBITDA Margin0.063.43
Operating Margin0.042.22
Sales Turnover0.490.5
Return on Assets17.2217.58
Return on Equity22.5324.4
Debt Q4 FY17 Q4 FY16
Current Ratio0.02.35
Interest Expense0.022.26
Interest Coverage0.0138.97

Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)5186.085186.08
Div / share0.00.0
Book value / share9.918.09
Institutional Own % n/a n/a
Avg Daily Volume6822252.05162131.0


BUY. The current P/E ratio indicates a significant discount compared to an average of 34.78 for the Semiconductors & Semiconductor Equipment industry and a discount compared to the S&P 500 average of 25.66. Conducting a second comparison, its price-to-book ratio of 4.57 indicates a premium versus the S&P 500 average of 3.28 and a significant discount versus the industry average of 7.05. 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 20.32 Peers 34.78   TSM NA Peers 21.88

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.


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

Ratio not available.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
TSM 16.57 Peers 21.80   TSM 1.08 Peers 0.85

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 significant premium to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TSM 4.57 Peers 7.05   TSM 13.19 Peers 171.10

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.


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

However, TSM is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TSM 7.13 Peers 6.18   TSM 12.71 Peers 22.15

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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