Taiwan Semiconductor Manufacturing Stock Buy Hold or Sell Recommendation
| TSM Stock | USD 132.27 6.76 4.86% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Taiwan Semiconductor Manufacturing is 'Strong Buy'. Macroaxis provides Taiwan Semiconductor buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding TSM positions. The advice algorithm takes into account all of Taiwan Semiconductor's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Taiwan Semiconductor's buy or sell advice are summarized below:
Real Value 135.03 | Target Price 114.91 | Hype Value 132.54 | Market Value 132.27 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Taiwan Semiconductor Manufacturing given historical horizon and risk tolerance towards Taiwan Semiconductor. When Macroaxis issues a 'buy' or 'sell' recommendation for Taiwan Semiconductor Manufacturing, the advice is generated through an automated system that utilizes algorithms and statistical models.
Taiwan |
Execute Taiwan Semiconductor Buy or Sell Advice
The Taiwan recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Taiwan Semiconductor Manufacturing. Macroaxis does not own or have any residual interests in Taiwan Semiconductor Manufacturing or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Taiwan Semiconductor's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Buy
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Taiwan Semiconductor Trading Alerts and Improvement Suggestions
| Taiwan Semiconductor has a poor financial position based on the latest SEC disclosures | |
| On 11th of April 2024 Taiwan Semiconductor paid $ 0.4278 per share dividend to its current shareholders | |
| Latest headline from investors.com: Dow Jones Futures Stock Market Power Trend On Cusp Of Ending Netflix Subscribers Jump |
Taiwan Semiconductor Returns Distribution Density
The distribution of Taiwan Semiconductor's historical returns is an attempt to chart the uncertainty of Taiwan Semiconductor's future price movements. The chart of the probability distribution of Taiwan Semiconductor daily returns describes the distribution of returns around its average expected value. We use Taiwan Semiconductor Manufacturing price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Taiwan Semiconductor returns is essential to provide solid investment advice for Taiwan Semiconductor.
| Mean Return | 0.44 | Value At Risk | -2.67 | Potential Upside | 4.89 | Standard Deviation | 2.57 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Taiwan Semiconductor historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Taiwan Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Taiwan Semiconductor is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Taiwan Semiconductor Manufacturing backward and forwards among themselves. Taiwan Semiconductor's institutional investor refers to the entity that pools money to purchase Taiwan Semiconductor's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Capital Research & Mgmt Co - Division 3 | 2023-12-31 | 14.1 M | Fiera Capital Corporation | 2023-12-31 | 13.4 M | Wellington Management Company Llp | 2023-12-31 | 12 M | Harding Loevner L.p. | 2023-12-31 | 11.6 M | Van Eck Associates Corporation | 2023-12-31 | 11.4 M | William Blair Investment Management, Llc | 2023-12-31 | 11.2 M | Vanguard Group Inc | 2023-12-31 | 10.8 M | Schroder Investment Management Group | 2023-12-31 | 9.6 M | Arnhold & S. Bleichroeder Advisers, Llc | 2023-12-31 | 9.1 M | Sanders Capital, Llc | 2023-12-31 | 44.5 M | Capital World Investors | 2023-12-31 | 41.4 M |
Taiwan Semiconductor Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 20.2B | (54.4B) | (55.7B) | (28.0B) | (29.8B) | (28.4B) | |
| Change In Cash | (122.4B) | 204.8B | 404.8B | 277.8B | 122.6B | 128.7B | |
| Free Cash Flow | 145.4B | 301.2B | 262.7B | 521.0B | 292.2B | 306.8B | |
| Depreciation | 286.9B | 331.7B | 422.4B | 437.3B | 526.9B | 553.2B | |
| Other Non Cash Items | (12.9B) | (6.9B) | (708.8M) | (93.7B) | (122.6B) | (116.4B) | |
| Capital Expenditures | 469.8B | 521.5B | 849.4B | 1.1T | 949.8B | 997.3B | |
| Net Income | 389.8B | 584.8B | 663.1B | 1.1T | 838.5B | 880.4B | |
| End Period Cash Flow | 455.4B | 660.2B | 1.1T | 1.3T | 1.5T | 1.5T | |
| Change To Netincome | (27.8B) | 1.4B | (22.5B) | 34.3B | 30.9B | 32.4B | |
| Investments | (458.8B) | (505.8B) | 4.3B | (1.2T) | (1.1T) | (1.0T) | |
| Net Borrowings | (6.0B) | 172.7B | 397.7B | 82.0B | 94.3B | 78.1B |
Taiwan Semiconductor Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Taiwan Semiconductor or Semiconductors & Semiconductor Equipment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Taiwan Semiconductor's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Taiwan stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | 0.33 | |
β | Beta against NYSE Composite | 1.58 | |
σ | Overall volatility | 2.33 | |
Ir | Information ratio | 0.14 |
Taiwan Semiconductor Volatility Alert
Taiwan Semiconductor Manufacturing has relatively low volatility with skewness of 0.97 and kurtosis of 2.23. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Taiwan Semiconductor's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Taiwan Semiconductor's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Taiwan Semiconductor Implied Volatility
Taiwan Semiconductor's implied volatility exposes the market's sentiment of Taiwan Semiconductor Manufacturing stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Taiwan Semiconductor's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Taiwan Semiconductor stock will not fluctuate a lot when Taiwan Semiconductor's options are near their expiration.
Taiwan Semiconductor Fundamentals Vs Peers
Comparing Taiwan Semiconductor's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Taiwan Semiconductor's direct or indirect competition across all of the common fundamentals between Taiwan Semiconductor and the related equities. This way, we can detect undervalued stocks with similar characteristics as Taiwan Semiconductor or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Taiwan Semiconductor's fundamental indicators could also be used in its relative valuation, which is a method of valuing Taiwan Semiconductor by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Taiwan Semiconductor to competition |
| Fundamentals | Taiwan Semiconductor | Peer Average |
| Return On Equity | 0.26 | -0.31 |
| Return On Asset | 0.11 | -0.14 |
| Profit Margin | 0.39 % | (1.27) % |
| Operating Margin | 0.42 % | (5.51) % |
| Current Valuation | 2.93 T | 16.62 B |
| Shares Outstanding | 5.19 B | 571.82 M |
| Shares Owned By Institutions | 17.17 % | 39.21 % |
| Number Of Shares Shorted | 24.82 M | 4.71 M |
| Price To Earning | 21.27 X | 28.72 X |
| Price To Book | 6.88 X | 9.51 X |
| Price To Sales | 0.34 X | 11.42 X |
| Revenue | 2.16 T | 9.43 B |
| Gross Profit | 1.35 T | 27.38 B |
| EBITDA | 1.45 T | 3.9 B |
| Net Income | 838.5 B | 570.98 M |
| Cash And Equivalents | 13.52 B | 2.7 B |
| Cash Per Share | 7.23 X | 5.01 X |
| Total Debt | 959.07 B | 5.32 B |
| Debt To Equity | 0.31 % | 48.70 % |
| Current Ratio | 2.49 X | 2.16 X |
| Book Value Per Share | 133.38 X | 1.93 K |
| Cash Flow From Operations | 1.24 T | 971.22 M |
| Short Ratio | 1.37 X | 4.00 X |
| Earnings Per Share | 4.99 X | 3.12 X |
| Price To Earnings To Growth | 1.63 X | 4.89 X |
| Target Price | 145.13 | |
| Beta | 1.24 | -0.15 |
| Market Capitalization | 685.35 B | 19.03 B |
| Total Asset | 5.53 T | 29.47 B |
| Retained Earnings | 2.88 T | 9.33 B |
| Working Capital | 1.11 T | 1.48 B |
| Annual Yield | 0.01 % | |
| Five Year Return | 2.64 % |
Taiwan Semiconductor Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Taiwan . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 0.0357 | |||
| Daily Balance Of Power | (1.40) | |||
| Rate Of Daily Change | 0.95 | |||
| Day Median Price | 132.72 | |||
| Day Typical Price | 132.57 | |||
| Market Facilitation Index | 4.83 | |||
| Price Action Indicator | (3.82) | |||
| Period Momentum Indicator | (6.76) |
About Taiwan Semiconductor Buy or Sell Advice
When is the right time to buy or sell Taiwan Semiconductor Manufacturing? Buying financial instruments such as Taiwan Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 749.1B | 888.2B | 959.1B | 1.0T | Total Assets | 3.7T | 5.0T | 5.5T | 5.8T |
Use Investing Ideas to Build Portfolios
In addition to having Taiwan Semiconductor in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Hedge Funds pool capital from accredited individuals or institutional investors and invest in a variety of assets, often with complex portfolio-construction and risk-management techniques. The Hedge Favorites theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Hedge Favorites Theme or any other thematic opportunities.
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Check out Taiwan Semiconductor Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Complementary Tools for Taiwan Stock analysis
When running Taiwan Semiconductor's price analysis, check to measure Taiwan Semiconductor's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Taiwan Semiconductor is operating at the current time. Most of Taiwan Semiconductor's value examination focuses on studying past and present price action to predict the probability of Taiwan Semiconductor's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Taiwan Semiconductor's price. Additionally, you may evaluate how the addition of Taiwan Semiconductor to your portfolios can decrease your overall portfolio volatility.
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Is Taiwan Semiconductor's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Taiwan Semiconductor. If investors know Taiwan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Taiwan Semiconductor listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.19) | Dividend Share 13 | Earnings Share 4.99 | Revenue Per Share 52.1069 | Return On Assets 0.1097 |
The market value of Taiwan Semiconductor is measured differently than its book value, which is the value of Taiwan that is recorded on the company's balance sheet. Investors also form their own opinion of Taiwan Semiconductor's value that differs from its market value or its book value, called intrinsic value, which is Taiwan Semiconductor's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Taiwan Semiconductor's market value can be influenced by many factors that don't directly affect Taiwan Semiconductor's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Taiwan Semiconductor's value and its price as these two are different measures arrived at by different means. Investors typically determine if Taiwan Semiconductor is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Taiwan Semiconductor's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.