Taiwan Semiconductor Manufacturing Company LimitedTSM
NYQ • Technology
$434.16
P/E
1.17
PEG
0.02
FCF Yield
44.1%
Rev Growth YoY
+35.1% YoY
Gross Margin
66.2%
Health Score
10/10
D/E Ratio
0.18
Confidence
HIGH
Business Snapshot
Taiwan Semiconductor Manufacturing Company (TSMC) is the world's largest dedicated semiconductor foundry, manufacturing advanced integrated circuits for fabless chip designers like Apple, NVIDIA, and AMD. It operates in the highly specialised semiconductor fabrication market as the undisputed dominant player, holding a commanding share of leading-edge process nodes below 7 nanometers. As a mega-cap with a $2.25 trillion market capitalisation and trailing twelve-month revenue of $4.10 trillion, the company's financial scale is extraordinary. Its defining characteristic is an almost insurmountable technological and capital-intensity moat, requiring tens of billions in annual investment to stay at the cutting edge, which acts as a high barrier to entry for any potential competitor.
Financial Health
Gross margin improved significantly to 66.2% from 62.3% in the prior year, while the net margin stands at a robust 46.5%, reflecting powerful operating leverage and pricing power. The balance sheet is exceptionally conservative with a debt-to-equity ratio of only 0.18x and a strong current ratio of 2.49x, indicating ample liquidity and very low financial risk...
Risk Assessment
- VALUATION — The reported P/E of 1.17x may be distorted by a one-time item or data anomaly, making standard valuation comparisons unreliable for this dataset.
- 52-WEEK POSITION — The current price of $434.16 is well below the midpoint of the 52-week range and $44.84 below the 52-week high of $479.00, indicating the stock has pulled back from its peak.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION DIVERGENCE — The absence of an FMP DCF fair value prevents a multi-model cross-check, leaving the Python DCF estimate of $8,860.83 as the sole intrinsic value benchmark.
- REVENUE DECELERATION — While YoY growth of 35.1% is strong, QoQ growth of 8.4% suggests some deceleration from the pace implied by the annual figure, warranting monitoring of near-term demand trends....
Gross margin improved significantly to 66.2% from 62.3% in the prior year, while the net margin stands at a robust 46.5%, reflecting powerful operating leverage and pricing power. The balance sheet is exceptionally conservative with a debt-to-equity ratio of only 0.18x and a strong current ratio of 2.49x, indicating ample liquidity and very low financial risk. The company generated enormous free cash flow of $992.38 billion, which translates to a stellar free cash flow yield of 44.1%, meaning the company returns a substantial portion of its market value in cash generation annually. This pristine financial health provides TSMC with significant capacity to fund its massive capital expenditure program, return capital to shareholders through dividends, and weather any industry downturn without distress.
- VALUATION — The reported P/E of 1.17x may be distorted by a one-time item or data anomaly, making standard valuation comparisons unreliable for this dataset. - 52-WEEK POSITION — The current price of $434.16 is well below the midpoint of the 52-week range and $44.84 below the 52-week high of $479.00, indicating the stock has pulled back from its peak. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - VALUATION DIVERGENCE — The absence of an FMP DCF fair value prevents a multi-model cross-check, leaving the Python DCF estimate of $8,860.83 as the sole intrinsic value benchmark. - REVENUE DECELERATION — While YoY growth of 35.1% is strong, QoQ growth of 8.4% suggests some deceleration from the pace implied by the annual figure, warranting monitoring of near-term demand trends.
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