Taiwan Semiconductor Manufacturing Company Limited (TSM) shares are trading at lower $99.50 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $86.35.
To add more color to this target, the company’s high over the last year is $104.30 and the low is $42.70. Over the last 52 weeks, TSM is up 87.10% while the S&P 500 is up 17.73%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, TSM reported a profit of $6.5 billion. Taiwan Semiconductor Manufacturing Company Limited also saw revenues increase to $12.15 billion. In addition, TSM has free cash flow of $4.94 billion as of 09-2020. The company’s EBITDA came in at $8.43 billion which compares well with its peers.
TSM booked profit margins of 37.90%, its Return on Equity (ROE) is 28.90%, and its Return on Assets is 20.30%. All told, it is clear that, TSM needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. TSM has a short ratio of 2.04 and outstanding shares of 5.19B.
TSM has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 9.15 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 3.32. Taiwan Semiconductor Manufacturing Company Limited TSM also noted assets of $89.87 billion at the end of the last quarter. Investors should also keep an eye on sector updates as TSM has historically followed its peers on positive news.
All told, Taiwan Semiconductor Manufacturing Company Limited TSM has strung together solid data and demonstrated underlying fundamentals. At its current valuation, TSM represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Taiwan Semiconductor Manufacturing Company Limited TSM is now commanding a market cap of 448.35B and a float of 4.86B. TSM is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of TSM stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in TSM, either long or short, and we have not been compensated for this article.