Taiwan Semiconductor Manufacturing Company Limited (TSM) stock analysis
Company overview and business model
Source fact: Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides various wafer fabrication processes, such as processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others. The company also involved in providing customer and engineering support services; manufacturing of masks; investment in technology start-up companies; research, designing, developing, manufacturing, packaging, testing, and sale of color filters; and investment activities. Its products are used in high performance computing, smartphones, Internet of things, automotive, and digital consumer electronics. Taiwan Semiconductor Manufacturing Company Limited was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.
Classification: NYSE · Technology · Semiconductors
Revenue and growth
Source fact: Revenue was TWD 3,809.05 billion for the period ending 2025-12-31.
Caverian calculation: Revenue changed +31.6% (FY2025 vs FY2024).
Profitability
Source fact: Net income was TWD 1,697.60 billion in the latest reported period.
Source metric: Reported net margin was 44.6%.
Balance sheet and liquidity
Source fact: Cash and equivalents were TWD 2,767.86 billion.
Source fact: Total debt was TWD 1,064.58 billion.
Source metric: Current ratio was 2.51x.
Cash-flow analysis
Source fact: Operating cash flow was TWD 2,274.98 billion.
Source fact: Free cash flow was TWD 992.38 billion.
Valuation
Source metrics: Trailing P/E 36.27x; Forward P/E 19.15x.
Caverian model output: Value score was 32/100.
Competitive position
Classification: Peer context: Semiconductors within Technology.
Caverian model output: Quality score was 90/100.
Caverian model output: Growth score was 89/100.
Material risks
Caverian calculation: Altman Z-score was 3.00 (safe zone).
Caverian calculation: Piotroski F-score was 9/9.
Data sources and freshness
Freshness: This report uses a stored upstream snapshot; statement periods are shown alongside the figures.
Methodology and limitations
Facts reproduce stored upstream fields. Calculations derive only from the displayed stored statements. Model outputs are Caverian interpretations, not investment advice or a buy/sell recommendation.
How Caverian approaches valuation · Sources and product principles