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Morning Stock Stories: Taiwan Semiconductor Manufacturing Company Limited (TSM)

When looking for the right stock to invest in, there are many different aspects you have to observe. It is typically broken down between fundamental analysis and technical analysis, with fundamental analysis checking the engine of the company so to speak and technical analysis looking at the chart. Both are equally important and should complement each other. With that said, let us dive into Taiwan Semiconductor Manufacturing Company LimitedNYSETSM.

Fundamental Analysis

Taiwan Semiconductor Manufacturing Company Limited is located in Taiwan and operates within the Technology sector. When looking at Taiwan Semiconductor Manufacturing Company Limited, the first item you can quickly note is the 15.62, which will give you a multiple that can be use to compare Taiwan Semiconductor Manufacturing Company Limited against others in the Semiconductor – Integrated Circuits or Technology. Taking a step further, the 15.32 will indicate how the company is expected to do going forward. This number should be growing and increasing with steadiness, showing the company can progress reliably. The current ESP growth this year comes in at 9.00%, supporting the 15.32 number.

 

The current dividend yield is 2.64%, indicating the amount of return you will receive independent of how the company does. In order for Taiwan Semiconductor Manufacturing Company Limited to pay dividends, they need to have healthy cash flow, which currently sits at 201.39. Sales growth quarter over quarter is 14.90%, indicating how the company may progress for the next quarter.

 

Not only is it important to look at the fundamentals, you want to see how many people inside the company own the stock, meaning their values are aligned with what the investors are expecting. Current inside ownership is , giving you an idea of how much skin the executives have in the game. Instituational ownership is important too, as it can indicate larger banks have confidence in the company. The current institutional ownership is .

 

Technical Analysis

 

Now that you have insight into the fundamentals of Taiwan Semiconductor Manufacturing Company Limited, begin taking a look at the technical patterns of the stock chart. The year to date performance of the company is 24.00% with the 52-week high being -3.39% and the 52-week low being 46.38%. Comparing that to the 200-day simple moving average of 13.51%, we can see where the stock relatively speaking.

 

The average volume of the stock is 6053.69, indicating how often it is traded, which can ultimately affect volatility. Monthly volatility is 1.13% and that can impact the overall risk of your portfolio. For those of you who are trading Taiwan Semiconductor Manufacturing Company Limited, the weekly volatility is 1.81% and performance for the week is -2.22%. Lastly, a widely used data point that has multiple ways of being calculated is target price. For long term investors, the current target price is 31.87, giving you growth from the current price of 35.65.

 

Combining the two types of research and analysis will give you a well rounded idea of how Taiwan Semiconductor Manufacturing Company Limited may perform into the future. You want to ensure that the current return on equity of 26.80% is going to be enough, ensuring your investment is worth the time. Don’t forget to ensure the company can pay its debts by looking at the current ration, which currently is 2.6, and the quick ration, which currently sits at 2.4. There are many factors to see and review, but zone in on which ones are for you and compile your own unique research points. Whether or not Taiwan Semiconductor Manufacturing Company Limited fits your portfolio, at the very least you will have a greater understanding of the Technology and Semiconductor – Integrated Circuits.

About the author

Mark Hines

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