Analysis of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM): Selected Notes

The closing price of Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) was $89.29 for the day, up 1.77% from the previous closing price of $87.74. In other words, the price has increased by $+1.55 from its previous closing price. On the day, 11095478 shares were traded. TSM stock price reached its highest trading level at $89.62 during the session, while it also had its lowest trading level at $87.71.

From Robots to Self-Driving Cars: 5 AI Stocks to Consider for Your Portfolio

The artificial intelligence (AI) revolution is already here and it's about to change everything we know about everything. With the global market for AI projected to grow from $137 billion in 2022 to over $1.81 trillion by 2030, there's never been a better time to invest in this burgeoning industry. That's why we've compiled a list of the Top 5 AI Stocks to Buy for 2023. These companies are at the forefront of the AI revolution, and have the potential to deliver huge returns to investors like you.

Get our free report, "Top 5 AI Stocks to Buy for 2023".

Sponsored

Ratios:

Our analysis of TSM’s different ratios will help us gain a deeper understanding of the company. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 8.76 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 57.27. For the most recent quarter (mrq), Quick Ratio is recorded 1.90 and its Current Ratio is at 2.20. In the meantime, Its Debt-to-Equity ratio is 0.30 whereas as Long-Term Debt/Eq ratio is at 0.29.

Upgrades & Downgrades

Valuation Measures:

As of this moment, Taiwan’s Price-to-Earnings (P/E) ratio for their current fiscal year is 14.05, and their Forward P/E ratio for the next fiscal year is 12.70. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.65. For the stock, the TTM Price-to-Sale (P/S) ratio is 6.14 while its Price-to-Book (P/B) ratio in mrq is 4.85.

Stock Price History:

Over the past 52 weeks, TSM has reached a high of $109.75, while it has fallen to a 52-week low of $59.43. The 50-Day Moving Average of the stock is 89.04, while the 200-Day Moving Average is calculated to be 81.79.

Shares Statistics:

TSM traded an average of 13.51M shares per day over the past three months and 10.15M shares per day over the past ten days. A total of 5.19B shares are outstanding, with a floating share count of 4.86B. Shares short for TSM as of Jan 12, 2023 were 31.29M with a Short Ratio of 22.78M, compared to 21.56M on Dec 14, 2022.

Dividends & Splits

With its trailing 12-month dividend rate of 7.50, TSM has a forward annual dividend rate of 2.27. Against a Trailing Annual Dividend Yield of 8.55%, it implies a Forward Annual Dividend Yield of 1.88%. The stock’s 5-year Average Dividend Yield is 2.62. The current Payout Ratio is 432.60% for TSM, which recently paid a dividend on Jul 12, 2023 with an ex-dividend date of Mar 15, 2023. Stock splits for the company last occurred on Jul 14, 2009 when the company split stock in a 1005:1000 ratio.

Earnings Estimates

The firm’s stock currently is rated by 5 analysts. On average, analysts expect EPS of $1.22 for the current quarter, with a high estimate of $1.26 and a low estimate of $1.18, while EPS last year was $1.39. The consensus estimate for the next quarter is $1.11, with high estimates of $1.16 and low estimates of $1.01.

Analysts are recommending an EPS of between $6.45 and $4.95 for the fiscal current year, implying an average EPS of $5.56. EPS for the following year is $7, with 4 analysts recommending between $7.68 and $6.25.

Revenue Estimates

It is expected that $90B in revenue will be generated in the current quarter, according to 5 analysts. It ranges from a high estimate of $17.4B to a low estimate of $16.86B. As of the current estimate, Taiwan Semiconductor Manufacturing Company Limited’s year-ago sales were $17.57B, an estimated decrease of -2.80% from the year-ago figure. For the next quarter, 5 analysts are estimating revenue of $16.48B, a decrease of -9.20% less than the figure of -$2.80% in the same quarter last year. There is a high estimate of $16.85B for the next quarter, whereas the lowest estimate is $15.62B.

A total of 8 analysts have provided revenue estimates for TSM’s current fiscal year. The highest revenue estimate was $78.29B, while the lowest revenue estimate was $73.68B, resulting in an average revenue estimate of $76.69B. In the same quarter a year ago, actual revenue was $75.88B, up 1.10% from the average estimate. Based on 6 analysts’ estimates, the company’s revenue will be $93.15B in the next fiscal year. The high estimate is $103.48B and the low estimate is $85.14B. The average revenue growth estimate for next year is up 21.50% from the average revenue estimate for this year.