Taiwan Semiconductor Manufacturing Company LimitedTSM
NYQ • Technology
$416.00
P/E
0.96
PEG
0.01
FCF Yield
46.0%
Rev Growth YoY
+36.0% YoY
Gross Margin
67.7%
Health Score
9/10
D/E Ratio
0.15
Confidence
MEDIUM
Business Snapshot
Taiwan Semiconductor Manufacturing Company is the world's largest dedicated semiconductor foundry, manufacturing advanced chips for fabless design companies across computing, mobile, automotive, and high-performance computing end markets. The company holds a dominant competitive position in leading-edge process technology, serving as the primary manufacturer for the industry's most sophisticated AI and data center processors. With a market cap of $2.16 trillion, it ranks as one of the largest companies globally, generating TTM revenue of $4.44 trillion. The defining characteristic setting TSMC apart is its technological leadership in advanced node manufacturing combined with extreme capital intensity, creating a formidable barrier to entry that few competitors can challenge. Its scale and strategic importance make it a linchpin of the global semiconductor supply chain.
Financial Health
Gross margin improved to 67.7% from 66.2% in the prior year, while net margin stands at a robust 49.9%, reflecting exceptional operational efficiency and pricing power. The balance sheet is fortress-like, with a debt-to-equity ratio of just 0.15x and a current ratio of 2.46x, indicating ample short-term liquidity and very conservative leverage...
Risk Assessment
VALUATION — Price-to-book of 86.76x is extremely elevated, suggesting the market assigns a very high premium to the company's asset base and may be pricing in perfection.
DATA QUALITY — P/E of 0.96x and PEG of 0.01x are implausibly low versus the sector average of 38.3x — note these figures may be distorted due to a one-time item or data anomaly.
TECHNICALS — Price sits below the 50-day moving average of $424.55 while trading above the 200-day MA of $365.23, reflecting a mixed short-term trend despite the golden cross signal.
52-WEEK POSITION — The current price of $416.00 sits 13.2% below the 52-week high of $479.00, implying recent pullback from peak levels despite the stock having more than doubled off the $225.63 low....
Gross margin improved to 67.7% from 66.2% in the prior year, while net margin stands at a robust 49.9%, reflecting exceptional operational efficiency and pricing power. The balance sheet is fortress-like, with a debt-to-equity ratio of just 0.15x and a current ratio of 2.46x, indicating ample short-term liquidity and very conservative leverage. The company generated $992.38B in free cash flow with a remarkable FCF yield of 46.0%, demonstrating a powerful capacity to fund its massive capital expenditure program while still returning capital to shareholders. Return on equity of 40.0% underscores outstanding capital allocation and shareholder value creation. This level of financial strength provides substantial capacity for sustained dividend growth and aggressive reinvestment in next-generation manufacturing capacity without balance sheet strain.
VALUATION — Price-to-book of 86.76x is extremely elevated, suggesting the market assigns a very high premium to the company's asset base and may be pricing in perfection. DATA QUALITY — P/E of 0.96x and PEG of 0.01x are implausibly low versus the sector average of 38.3x — note these figures may be distorted due to a one-time item or data anomaly. TECHNICALS — Price sits below the 50-day moving average of $424.55 while trading above the 200-day MA of $365.23, reflecting a mixed short-term trend despite the golden cross signal. 52-WEEK POSITION — The current price of $416.00 sits 13.2% below the 52-week high of $479.00, implying recent pullback from peak levels despite the stock having more than doubled off the $225.63 low.
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