TSM: Analyst Consesus Above $110. Here's Why.

blinky
2022-05-12

As of Wednesday close, $Taiwan Semiconductor Manufacturing(TSM)$ stock was down -$0.99, moving down -1.11 percent to $87.83. The average number of shares traded per day over the past five days has been 10,822,440 shares. 1 time new highs have been achieved over the past 5 days, with a -$8.16 fall in that time frame. In the last twenty days, the average volume was 11,735,561, while in the previous 50 days, it was 13,032,222.

Since last month, TSM stock retreated -9.98%. Shares of the company fell to $87.01 on 05/09/22, the lowest level in the past month. A 52-week high of $145.00 was reached on 01/13/22 after having rallying from a 52-week low of $87.01. Since the beginning of this year, TSM’s stock price has dropped by -27.00% or -$32.48, and marked a new high 3 times. However, the stock has declined by -39.43% since its 52-week high.

Valuation Metrics

Right now, Taiwan Semiconductor Manufacturing Company Limited (TSM) has a P/E ratio of about 20.48. The stock’s beta is 0.94. Besides these, the trailing price-to-sales (P/S) ratio of 7.94, the price-to-book (PB) ratio of 6.23, and the price-to-cash flow ratio of 328.35 may also be considered.

The latest dividend of $0.462460 per share was paid out, which is 18.67% more than last year’s $0.3897. On Wednesday May 11 2022, a $0.072760 dividend increase was announced.

Financial Health

In the three months ended September 29, Taiwan Semiconductor Manufacturing Company Limited’s quick ratio stood at 1.90, while its current ratio was 2.20, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 0.29, and the total debt-to-equity ratio was 0.35. On the profitability front, the trailing twelve-month gross margin is 52.60% percent. In the year ended September 29, EBITDA margin amounted to 67.57%, whereas operating margins totaled 36.40%. Based on annual data, TSM earned $29.54 billion in gross profit and brought in $57.22 billion in revenue.

In Taiwan Semiconductor Manufacturing Company Limited’s quarter-end financial report for September 29, it reported total debt of $6.04 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. TSM’s revenue rose 16.65% during the quarter, while net income inched up to $57.22 billion. While analysts expected Taiwan Semiconductor Manufacturing Company Limited to report $1.04 quarterly earnings, the actual figure was $1.08 per share, beating the consensus estimate by 3.80%. During the quarter, the company generated $10.75 billion in EBITDA. The liabilities of Taiwan Semiconductor Manufacturing Company Limited were 56.73 billion at the end of its most recent quarter ended September 29, and its total debt was $755.82 billion.

Technical Picture

This quick technical analysis looks at Taiwan Semiconductor Manufacturing Company Limited’s (TSM) price momentum. With a historical volatility rate of 48.83%, the RSI 9-day stood at 32.86% on 11 May.

With respect to its five-day moving average, the current Taiwan Semiconductor Manufacturing Company Limited price is down by -8.50% percent or -$8.16. At present, TSM shares trade -9.86% below its 20-day simple moving average and -24.65% percent below its 100-day simple moving average. However, the stock is currently trading approximately -18.71% below its SMA50 and -22.64% below its SMA200.

Stochastic coefficient K was 7.65% and Stochastic coefficient D was 9.38%, while ATR was 3.25. Given the Stochastic reading of 7.61% for the 14-day period, the RSI (14) reading has been calculated as 34.52%. As of today, the MACD Oscillator reading stands at -3.58, while the 14-day reading stands at -4.46.

Analyst Ratings

Morgan Stanley upgraded its rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) to an Overweight in a note to investors on February 07, 2022. The analysts firm previously had an Equal-weight rating on the stock.Taiwan Semiconductor Manufacturing Company Limited (TSM) has been rated Buy by analysts. According to 0 brokerage firms, TSM is a sell, and 2 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 8 analysts rate Taiwan Semiconductor Manufacturing Company Limited stock as buy, with 27 recommending it as overweight.

With a median target price of $154.00, the current consensus forecast for the stock is $116.00 – $160.00. Based on these forecasts, analysts predict Taiwan Semiconductor Manufacturing Company Limited (TSM) will achieve an average price target of $147.58.

source: fostersleader

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • th0mastan
    2022-05-15
    th0mastan
    Well analyzed of TSM! The average share price has been 110-120 in 2021. However recent decline has dropped below this value, once the selling pressure is over, it will reverse back to mean
    • blinky
      Thank you for your praise. 😁I believe TSM will rise.
  • MerLina
    2022-05-13
    MerLina
    Hope so. Me still in the deep
    • blinky
      Believe it, it can take off.😁
  • Kyesu
    2022-05-12
    Kyesu
    Read and thanks
  • chrng
    2022-05-12
    chrng
    [Anger] [Anger] [Anger]
  • Clarence1700
    2022-05-12
    Clarence1700
    Thank you for sharing this article.
  • Bonta
    2022-05-12
    Bonta
    Good write up. [Strong][Strong]
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