Taiwan Semiconductor Manufactur(TSM) - Stock detail

Taiwan Semiconductor Manufactur

US
TSM
Taiwan Semiconductor Manufacturing Company Limited(Listing date: 10/08/1997)

Taiwan Semiconductor Manufacturing Co., Ltd. is a joint venture between the Taiwan Provincial Government of China, Philips, and other private investors, registered in Taiwan Province of China on February 21, 1987. The company is currently the world's largest LED wafer foundry in the global semiconductor industry. As a foundry, the company manufactures semiconductors using its manufacturing processes based on customers' own or third-party proprietary integrated circuit designs. It offers a comprehensive range of wafer manufacturing processes, including those for manufacturing CMOS logic, mixed-signal, radio frequency, embedded memory, BiCMOS mixed-signal and other semiconductors. The company also provides design, mask making, probing, testing and assembly services.

AI Value AnalystHold
Overall Rating7.3/10
Generated at:2026-06-11 17:40:45
Analysis based on real data for Taiwan Semiconductor Manufacturing (TSM). Financial analysis utilizes data from 5 consecutive quarterly reports ending 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, and 2025-03-31. Valuation uses real-time price data as of 2026-06-12 and trailing twelve-month (TTM) metrics. Data appears complete for the analysis performed.
Overview

Taiwan Semiconductor Manufacturing (TSM) is the world's leading dedicated semiconductor foundry with a strong competitive moat due to its technological leadership, particularly in advanced process nodes. The company exhibits a robust financial structure with strong liquidity and conservative leverage, coupled with exceptional and accelerating profitability metrics. While the long-term prospects remain excellent, the current valuation is high but supported by its performance, placing the stock near the upper end of its recent trading range.

Valuation
5/10
Profitability
9/10
Financial health
8/10
Operation Advice
  • Maintain existing positions given the company's fundamental quality and growth trajectory.
  • New investments should wait for a more attractive entry point, as the current price is near the top of the recent range and within the upper half of the calculated reasonable fair value band ($380-$440).

Valuation

P/E TTM
32.60
P/E LYR
31.94
P/B MRQ
10.85
P/S TTM
--
AI Analysis
  • The current P/E of ~32x is high but can be justified by the company's high double-digit earnings growth. The P/B ratio of 10.85 is very high, reflecting the market's valuation of intangible assets and extraordinary profitability. The stock is trading near the upper end of its recent range ($313.80-$450.16) and within a calculated reasonable fair value range of $380-$440.
  • Current Price is $421.07 (as of 2026-06-12).
  • The trailing P/E (TTM) is 32.60, and the forward-looking (dynamic) P/E is 31.94.
  • For a company with TSM's growth profile (high double-digit earnings growth), a P/E in the low 30s can be justified, though it is at a premium to the broader market.
  • The Price-to-Book (P/B) ratio is 10.85, which is very high.
  • This high P/B reflects the market's valuation of the company's intangible assets (technological leadership, customer relationships) and extraordinary profitability (high ROE) far above its accounting book value.
  • The Price-to-Sales (P/S) ratio of 0.53 appears low, but this is misleading due to the company's exceptionally high net margins (~50%).
  • The high P/E is supported by sustained earnings growth above 50% in recent quarters.
  • Over the last 60 days, the stock has traded between a low of $313.80 (2026-03-30) and a high of $450.16 (2026-06-03). The current price is near the upper end of this recent range.
  • Given the stellar profitability (ROE ~37%), strong growth, and financial health, the stock commands a premium.
  • A reasonable fair value range, based on a normalized high-growth premium, could be between $380 and $440. The current price of $421.07 sits within this range, towards the upper half.
Valuation trend

Profitability

ROE TTM
37.32%
Net margin
50.51%
Gross margin
66.25%
Total revenue
1.13T
AI Analysis
  • Profitability metrics are exceptional and show accelerating trends, with Q1 2026 gross margin surging to 66.25% and net margin reaching 50.51%. Return on Equity (ROE-TTM) of 37.32% and Return on Assets (ROA-TTM) of 24.89% are exceptionally high, indicating highly efficient capital use. Revenue and profit growth have been consistently strong, with Q1 2026 revenue growing 35.13% YoY and net income growing 58.33% YoY.
  • Profitability metrics are exceptional and show accelerating trends.
  • The Q1 2026 gross margin surged to 66.25%, and the net margin reached 50.51%.
  • These figures represent a significant expansion from the full-year 2025 margins (59.89% and 44.50%, respectively), likely driven by a favorable product mix and strong pricing power for advanced technologies.
  • The Return on Equity (ROE-TTM) of 37.32% and Return on Assets (ROA-TTM) of 24.89% are exceptionally high.
  • These high returns indicate highly efficient use of shareholder capital and corporate assets to generate profits.
  • Revenue and profit growth have been consistently strong.
  • Q1 2026 revenue grew 35.13% Year-over-Year (YoY), while net income grew 58.33% YoY.
  • This follows a pattern of high growth seen in previous quarters, demonstrating the company's ability to capitalize on strong semiconductor demand.
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--17.13%26.10%35.37%37.32%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue839.25B1.77T2.76T3.81T1.13T

Financial health

Debt/Asset
31.50%
Current ratio
2.49
Quick ratio
2.31
Cash ratio
2.31
AI Analysis
  • The company exhibits a robust and healthy financial structure with strong liquidity (current ratio of 2.49, quick ratio of 2.31) and conservative leverage (asset-liability ratio of 31.50%). This combination points to a very strong balance sheet capable of funding massive capital expenditures for future growth without undue strain.
  • The company exhibits a robust and healthy financial structure.
  • The current ratio of 2.49 and quick ratio of 2.31 indicate ample short-term assets to cover liabilities, providing financial flexibility and resilience.
  • An asset-liability ratio of 31.50% reflects a conservative capital structure with low financial risk.
  • The company is primarily equity-financed, which is advantageous in a capital-intensive industry.
  • The combination of high liquidity and low leverage points to a very strong balance sheet.
  • The balance sheet is capable of funding massive capital expenditures for future growth without undue strain.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset35.49%34.11%31.53%31.98%31.50%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio2.392.372.692.512.49