Is Taiwan Semiconductor Stock a Good Investment?
Taiwan Semiconductor Investment Advice | TSM |
- Examine Taiwan Semiconductor's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Taiwan Semiconductor's leadership team and their track record. Good management can help Taiwan Semiconductor navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Semiconductors & Semiconductor Equipment space and any emerging trends that could impact Taiwan Semiconductor's business and its evolving consumer preferences.
- Compare Taiwan Semiconductor's performance and market position to its competitors. Analyze how Taiwan Semiconductor is positioned in terms of product offerings, innovation, and market share.
- Check if Taiwan Semiconductor pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Taiwan Semiconductor's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Taiwan Semiconductor Manufacturing stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Taiwan Semiconductor Manufacturing is a good investment.
Sell | Buy |
Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Taiwan Semiconductor Stock
Researching Taiwan Semiconductor's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 16.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.21. Taiwan Semiconductor recorded earning per share (EPS) of 6.25. The entity last dividend was issued on the 12th of December 2024. The firm had 1005:1000 split on the 15th of July 2009.
To determine if Taiwan Semiconductor is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Taiwan Semiconductor's research are outlined below:
| On 9th of October 2024 Taiwan Semiconductor paid $ 0.6158 per share dividend to its current shareholders | |
| Latest headline from insidermonkey.com: Taiwan Semiconductor Manufacturing Company Limited Secures 6.6 Billion CHIPS Act Funding for Arizona Expansion |
Taiwan Semiconductor Quarterly Good Will |
|
Taiwan Semiconductor uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Taiwan Semiconductor Manufacturing. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Taiwan Semiconductor's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 18th of April 2024 Upcoming Quarterly Report | View | |
| 18th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 16th of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Taiwan Semiconductor's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Taiwan Semiconductor's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2004-04-21 | 2004-03-31 | 0.1 | 0.11 | 0.01 | 10 | ||
2004-01-29 | 2003-12-31 | 0.09 | 0.1 | 0.01 | 11 | ||
2003-10-28 | 2003-09-30 | 0.08 | 0.09 | 0.01 | 12 | ||
2003-07-24 | 2003-06-30 | 0.05 | 0.06 | 0.01 | 20 | ||
2003-04-29 | 2003-03-31 | 0.01 | 0.02 | 0.01 | 100 | ||
2003-01-28 | 2002-12-31 | 0.02 | 0.01 | -0.01 | 50 | ||
2002-07-25 | 2002-06-30 | 0.06 | 0.05 | -0.01 | 16 | ||
2000-04-27 | 2000-03-31 | 0.07 | 0.08 | 0.01 | 14 |
Know Taiwan Semiconductor's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Taiwan Semiconductor is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Taiwan Semiconductor Manufacturing backward and forwards among themselves. Taiwan Semiconductor's institutional investor refers to the entity that pools money to purchase Taiwan Semiconductor's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Bank Of America Corp | 2024-06-30 | 12.4 M | Fiera Capital Corporation | 2024-06-30 | 12.2 M | Coatue Management Llc | 2024-06-30 | 11.4 M | Royal Bank Of Canada | 2024-06-30 | 11.1 M | Wcm Investment Management | 2024-09-30 | 9.7 M | Goldman Sachs Group Inc | 2024-06-30 | 9.1 M | William Blair Investment Management, Llc | 2024-09-30 | 8.2 M | Harding Loevner L.p. | 2024-06-30 | 7.9 M | T. Rowe Price Associates, Inc. | 2024-06-30 | 7.8 M | Fmr Inc | 2024-09-30 | 56 M | Jpmorgan Chase & Co | 2024-06-30 | 41.8 M |
Taiwan Semiconductor's market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 976.94 B.Market Cap |
|
Taiwan Semiconductor's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.15 | 0.13 | |
| Return On Capital Employed | 0.20 | 0.16 | |
| Return On Assets | 0.15 | 0.13 | |
| Return On Equity | 0.24 | 0.18 |
Determining Taiwan Semiconductor's profitability involves analyzing its financial statements and using various financial metrics to determine if Taiwan Semiconductor is a good buy. For example, gross profit margin measures Taiwan Semiconductor's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Taiwan Semiconductor's profitability and make more informed investment decisions.
Taiwan Semiconductor's Earnings Breakdown by Geography
Evaluate Taiwan Semiconductor's management efficiency
Taiwan Semiconductor has Return on Asset of 0.1241 % which means that on every $100 spent on assets, it made $0.1241 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.2803 %, implying that it generated $0.2803 on every 100 dollars invested. Taiwan Semiconductor's management efficiency ratios could be used to measure how well Taiwan Semiconductor manages its routine affairs as well as how well it operates its assets and liabilities. As of the 21st of November 2024, Return On Tangible Assets is likely to drop to 0.13. In addition to that, Return On Capital Employed is likely to drop to 0.16. At this time, Taiwan Semiconductor's Total Assets are very stable compared to the past year. As of the 21st of November 2024, Non Current Assets Total is likely to grow to about 3.5 T, while Other Assets are likely to drop 0.95.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 134.34 | 133.87 | |
| Tangible Book Value Per Share | 133.46 | 132.17 | |
| Enterprise Value Over EBITDA | 56.57 | 59.40 | |
| Price Book Value Ratio | 24.12 | 25.33 | |
| Enterprise Value Multiple | 56.57 | 59.40 | |
| Price Fair Value | 24.12 | 25.33 | |
| Enterprise Value | 82.2 T | 86.3 T |
Leadership at Taiwan Semiconductor emphasizes sustainable growth and financial prudence. Our analysis evaluates how these priorities impact the stock's performance in the market.
Dividend Yield 0.0147 | Forward Dividend Yield 0.0147 | Forward Dividend Rate 2.78 | Beta 1.232 |
Basic technical analysis of Taiwan Stock
As of the 21st of November, Taiwan Semiconductor has the Risk Adjusted Performance of 0.0583, coefficient of variation of 1472.21, and Semi Deviation of 2.34. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Taiwan Semiconductor, as well as the relationship between them. Please validate Taiwan Semiconductor coefficient of variation, maximum drawdown, as well as the relationship between the Maximum Drawdown and skewness to decide if Taiwan Semiconductor is priced more or less accurately, providing market reflects its prevalent price of 188.36 per share. Given that Taiwan Semiconductor has jensen alpha of 0.0913, we advise you to double-check Taiwan Semiconductor Manufacturing's current market performance to make sure the company can sustain itself at a future point.Taiwan Semiconductor's Outstanding Corporate Bonds
Taiwan Semiconductor issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Taiwan Semiconductor uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Taiwan bonds can be classified according to their maturity, which is the date when Taiwan Semiconductor Manufacturing has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| TTWO 355 14 APR 25 Corp BondUS874054AF63 | View | |
| TTWO 37 14 APR 27 Corp BondUS874054AG47 | View | |
| TTWO 4 14 APR 32 Corp BondUS874054AH20 | View | |
| TAKEDA PHARMACEUTICAL LTD Corp BondUS874060AW64 | View | |
| TAKEDA PHARMACEUTICAL LTD Corp BondUS874060AX48 | View | |
| TAKEDA PHARMACEUTICAL LTD Corp BondUS874060AY21 | View | |
| TAKEDA PHARMACEUTICAL LTD Corp BondUS874060AZ95 | View | |
| TAKEDA PHARMACEUTICAL LTD Corp BondUS874060BD74 | View |
Understand Taiwan Semiconductor's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Taiwan Semiconductor's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0583 | |||
| Market Risk Adjusted Performance | 0.2003 | |||
| Mean Deviation | 1.89 | |||
| Semi Deviation | 2.34 | |||
| Downside Deviation | 2.46 | |||
| Coefficient Of Variation | 1472.21 | |||
| Standard Deviation | 2.58 | |||
| Variance | 6.68 | |||
| Information Ratio | 0.031 | |||
| Jensen Alpha | 0.0913 | |||
| Total Risk Alpha | (0.13) | |||
| Sortino Ratio | 0.0326 | |||
| Treynor Ratio | 0.1903 | |||
| Maximum Drawdown | 14.1 | |||
| Value At Risk | (4.21) | |||
| Potential Upside | 4.13 | |||
| Downside Variance | 6.04 | |||
| Semi Variance | 5.47 | |||
| Expected Short fall | (1.95) | |||
| Skewness | 0.5444 | |||
| Kurtosis | 2.38 |
| Risk Adjusted Performance | 0.0583 | |||
| Market Risk Adjusted Performance | 0.2003 | |||
| Mean Deviation | 1.89 | |||
| Semi Deviation | 2.34 | |||
| Downside Deviation | 2.46 | |||
| Coefficient Of Variation | 1472.21 | |||
| Standard Deviation | 2.58 | |||
| Variance | 6.68 | |||
| Information Ratio | 0.031 | |||
| Jensen Alpha | 0.0913 | |||
| Total Risk Alpha | (0.13) | |||
| Sortino Ratio | 0.0326 | |||
| Treynor Ratio | 0.1903 | |||
| Maximum Drawdown | 14.1 | |||
| Value At Risk | (4.21) | |||
| Potential Upside | 4.13 | |||
| Downside Variance | 6.04 | |||
| Semi Variance | 5.47 | |||
| Expected Short fall | (1.95) | |||
| Skewness | 0.5444 | |||
| Kurtosis | 2.38 |
Consider Taiwan Semiconductor's intraday indicators
Taiwan Semiconductor intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Taiwan Semiconductor stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Taiwan Semiconductor Corporate Filings
6K | 14th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
Taiwan Stock media impact
Far too much social signal, news, headlines, and media speculation about Taiwan Semiconductor that are available to investors today. That information is available publicly through Taiwan media outlets and privately through word of mouth or via Taiwan internal channels. However, regardless of the origin, that massive amount of Taiwan data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Taiwan Semiconductor news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Taiwan Semiconductor relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Taiwan Semiconductor's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Taiwan Semiconductor alpha.
Taiwan Semiconductor Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Taiwan Semiconductor can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Taiwan Semiconductor Historical Investor Sentiment
Investor biases related to Taiwan Semiconductor's public news can be used to forecast risks associated with an investment in Taiwan. The trend in average sentiment can be used to explain how an investor holding Taiwan can time the market purely based on public headlines and social activities around Taiwan Semiconductor Manufacturing. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Taiwan Semiconductor's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Taiwan Semiconductor and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Taiwan Semiconductor news discussions. The higher the estimate score, the more favorable the investor's outlook on Taiwan Semiconductor.
Taiwan Semiconductor Corporate Directors
| Peter Bonfield | Independent Director | Profile | |
| Stan Shih | Independent Director | Profile | |
| Michael Splinter | Independent Director | Profile | |
| KokChoo Chen | Independent Director | Profile |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Taiwan Semiconductor Manufacturing. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Taiwan Semiconductor. If investors know Taiwan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Taiwan Semiconductor listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.541 | Dividend Share 15.5 | Earnings Share 6.25 | Revenue Per Share 63.9069 | Quarterly Revenue Growth 0.39 |
The market value of Taiwan Semiconductor is measured differently than its book value, which is the value of Taiwan that is recorded on the company's balance sheet. Investors also form their own opinion of Taiwan Semiconductor's value that differs from its market value or its book value, called intrinsic value, which is Taiwan Semiconductor's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Taiwan Semiconductor's market value can be influenced by many factors that don't directly affect Taiwan Semiconductor's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Taiwan Semiconductor's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Taiwan Semiconductor is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Taiwan Semiconductor's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.