Technicals Say Taiwan Semiconductor Manufacturing Company Limited (TSM) Is A Hold

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Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) finished Thursday with an addition of $2.94 to close at $76.00, an upside of 4.02 percent. An average of 10,173,000 shares of common stock have been traded in the last five days. There was a fall of -$1.14 in the past week, and it reached a new high 5 times over the past 12 months. The last 20 days have seen an average of 12,680,355 shares traded, while the 50-day average volume stands at 14,866,662.

TSM stock has decreased by -4.20% in the last month. The company shares reached their 1-month lowest point of $72.84 on 12/28/22. With the stock rallying to its 52-week high on 01/13/22, shares of the company touched a low of $59.43 and a high of $145.00 in 52 weeks. It has reached a new high 3 times so far this year and lost -36.83% or -$44.31 in price. In spite of this, the price is down -47.59% from the 52-week high.

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Valuation Metrics

Taiwan Semiconductor Manufacturing Company Limited (TSM) has a trailing price-to-earnings (P/E) ratio of 13.66. The stock’s beta is 1.06. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 5.94, the price-to-book (PB) ratio at 4.42, and the price-to-cash flow ratio at 52.46.

The company has a payout ratio of 741.50%. The company’s most recent quarterly dividend payment was $0.3392 a share, representing a down of -25.94% from $0.4580 last year. Its latest decrease dividend $0.1188 reported on Wednesday November 9 2022.

Financial Health

The quick ratio of Taiwan Semiconductor Manufacturing Company Limited for the three months ended September 29 was 2.20, and the current ratio was 2.50, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.32 and a total debt to equity ratio of 0.33 for the quarter ending September 29. Taiwan Semiconductor Manufacturing Company Limited’s EBITDA margin for the year ending September 29 is 67.57%, while its operating margin for the same period stands at 47.10%. Its gross profit as reported stood at $29.54 billion compared to revenue of $57.22 billion.

Earnings Surprise

For the three-month period that ended September 29, Taiwan Semiconductor Manufacturing Company Limited had $6.04 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $21.35 billion in the quarter, while revenues were grew 14.82%. The analyst consensus anticipated Taiwan Semiconductor Manufacturing Company Limited’s latest quarter earnings to come in at $1.69 per share, but it turned out to be $1.79, a 5.90% surprise. For the quarter, EBITDA amounted to $13.43 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Taiwan Semiconductor Manufacturing Company Limited (TSM) price momentum. RSI 9-day as of the close on 29 December was 46.89%, suggesting the stock is Neutral, with historical volatility in this time frame at 29.94%.

As of today, TSM’s price is $74.71 -1.48% or -$1.14 from its 5-day moving average. TSM is currently trading -8.41% lower than its 20-day SMA and -13.58% lower than its 100-day SMA. However, the stock’s current price level is +19.29% above the SMA50 and -25.56% below the SMA200.

The stochastic %K and %D were 13.29% and 9.09%, respectively, and the average true range (ATR) was 1.96. With the 14-day stochastic at 33.80% and the average true range at 2.06, the RSI (14) stands at 48.28%. The stock has reached -0.95 on the 9-day MACD Oscillator while the 14-day reading was at -2.54.

Analyst Ratings

Daiwa Securities upgraded Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for Taiwan Semiconductor Manufacturing Company Limited (TSM) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell TSM, while 4 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 4 analysts, while 31 others rate it as a “buy”.

What is TSM’s price target for the next 12 months?

Analysts predict a range of price targets between $60.00 and $113.00, with a median target of $99.00. Taking a look at these predictions, the average price target given by analysts for Taiwan Semiconductor Manufacturing Company Limited (TSM) stock is $91.22.

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