Taiwan Semiconductor Manufacturing Co Ltd

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TSM : NYSE : Technology
$38.32 up 0.25 | 0.66%
Today's Range: 38.13 - 38.43
Avg. Daily Volume: 5412400.0
09/19/17 - 3:59 PM ET

Financial Analysis


TAIWAN SEMICONDUCTOR MFG CO's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. TAIWAN SEMICONDUCTOR MFG CO has average liquidity. Currently, the Quick Ratio is 1.47 which shows that technically this company has the ability to cover 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 18.93% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)7039.346876.38
EBITDA ($mil)4653.484545.17
EBIT ($mil)2744.582831.78
Net Income ($mil)2181.42247.85


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)21689.4420728.26
Total Assets ($mil)65386.2356005.33
Total Debt ($mil)7700.067512.48
Equity ($mil)44163.4537133.9


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin75.4974.43
EBITDA Margin66.166.09
Operating Margin38.9941.18
Sales Turnover0.470.45
Return on Assets16.8815.14
Return on Equity25.022.83
Debt Q2 FY17 Q2 FY16
Current Ratio1.62.14
Debt/Capital0.150.17
Interest Expense27.6525.46
Interest Coverage99.27111.22


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)5186.085186.08
Div / share1.150.94
EPS0.420.43
Book value / share8.527.16
Institutional Own % n/a n/a
Avg Daily Volume5467563.06065533.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 46.90 for the Semiconductors & Semiconductor Equipment industry and a discount compared to the S&P 500 average of 24.88. To use another comparison, its price-to-book ratio of 4.39 indicates a premium versus the S&P 500 average of 3.10 and a discount versus the industry average of 5.49. 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 17.55 Peers 46.90   TSM 10.51 Peers 18.33

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 15.97 Peers 21.72   TSM 1.98 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 significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TSM 4.39 Peers 5.49   TSM 30.67 Peers 122.55

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.

 

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TSM 6.29 Peers 5.24   TSM 22.78 Peers 25.22

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

TSM is keeping pace with its peers on the basis of sales growth.

 

 

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