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Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM): A Fundamentally Weighted Stock for Long-Term Investors

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has a beta of 0.90, a 12-month trailing P/E ratio of 31.61, and a growth ratio of 1.99. The stock’s Relative Strength Index (RSI) is 58.09, with weekly volatility at 1.62% and ATR at 2.76. The TSM stock’s 52-week price range has touched low of $49.86 and a $142.20 high. Its shares traded higher over the last trading session, gaining 0.98% on 06/01/21. The shares fell to a low of $117.43 before closing at $118.51. Intraday shares traded counted 7.34 million, which was 30.94% higher than its 30-day average trading volume of 10.63M. TSM’s previous close was $117.36 while the outstanding shares total 5.19B.

Investors have identified the Semiconductors company Taiwan Semiconductor Manufacturing Company Limited as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $548.81 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Taiwan Semiconductor Manufacturing Company Limited (TSM) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For TSM, the company has in raw cash 23.66 billion on their books with 4.88 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 40.58 billion total, with 23.55 billion as their total liabilities.

TSM were able to record -719.58 million as free cash flow during the 07/22/2021 quarter of the year, this saw their quarterly net cash flow reduce by 162.24 million. In cash movements, the company had a total of 8.11 billion as operating cash flow.

Potential earnings growth for Taiwan Semiconductor Manufacturing Company Limited (TSM)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/22/2021 quarter of the year, Taiwan Semiconductor Manufacturing Company Limited recorded a total of 12.9 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 20.09% coming in sequential stages and their sales for the 07/22/2021 quarter reducing by -14.86%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 6.15 billion trying to sell their products during the last quarter, with the result yielding a gross income of 6.76 billion. This allows shareholders to hold on to 5.19B with the recently reported earning now reading 0.96 cents per share. This is a figure that compared to analyst’s prediction for their 07/22/2021 (0.96 cents a share).

Having a look at the company’s valuation, the company is expected to record 4.85 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on TSM sounds very interesting.

Is the stock of TSM attractive?

26 out of 35 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Taiwan Semiconductor Manufacturing Company Limited. 1 analysts has assigned a Sell rating on the TSM stock. The 12-month mean consensus price target for the company’s shares has been set at $135.22.

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