Taiwan Semiconductor Manufacturing Co Ltd

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TSM : NYSE : Technology
$28.39 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 6,865,000
08/24/16 - 4:00 PM ET

Financial Analysis


Even though sales increased, the net income has decreased.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)6876.376735.7
EBITDA ($mil)0.04320.16
EBIT ($mil)0.02530.57
Net Income ($mil)2247.512601.29


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)0.017822.24
Total Assets ($mil)0.052100.16
Total Debt ($mil)0.06743.97
Equity ($mil)0.034539.52


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin0.073.13
EBITDA Margin0.064.13
Operating Margin0.037.57
Sales Turnover0.00.52
Return on Assets0.018.96
Return on Equity0.028.6
Debt Q2 FY16 Q2 FY15
Current Ratio0.02.36
Debt/Capital0.00.16
Interest Expense0.025.67
Interest Coverage0.098.6


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)5186.085185.72
Div / share0.940.72
EPS0.430.5
Book value / share0.06.66
Institutional Own % n/a n/a
Avg Daily Volume6904044.07149666.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 41.69 for the Semiconductors & Semiconductor Equipment industry and a discount compared to the S&P 500 average of 25.30. 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 17.89 Peers 41.69   TSM NA Peers 18.25

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TSM 14.95 Peers 19.44   TSM 3.22 Peers 2.67

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 NA Peers 4.32   TSM -14.66 Peers -2.97

Neutral. 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.

Ratio not available.

 

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 6.03 Peers 5.17   TSM -6.74 Peers 3.93

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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