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Taiwan Semiconductor Manufacturing Co Piotroski F-Score

: 5 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Taiwan Semiconductor Manufacturing Co has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Taiwan Semiconductor Manufacturing Co's Piotroski F-Score or its related term are showing as below:

TSM' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 9
Current: 5

During the past 13 years, the highest Piotroski F-Score of Taiwan Semiconductor Manufacturing Co was 9. The lowest was 2. And the median was 6.


Taiwan Semiconductor Manufacturing Co Piotroski F-Score Historical Data

The historical data trend for Taiwan Semiconductor Manufacturing Co's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Taiwan Semiconductor Manufacturing Co Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 5.00 8.00 5.00

Taiwan Semiconductor Manufacturing Co Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 8.00 5.00 5.00 5.00

Competitive Comparison

For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Taiwan Semiconductor Manufacturing Co Piotroski F-Score Distribution

For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar22) TTM:Last Year (Mar21) TTM:
Net Income was 4942.0448884089 + 5636.8457126366 + 5990.7525199924 + 7130.6262815981 = $23,700 Mil.
Cash Flow from Operations was 6747.2820014399 + 11496.915695682 + 13629.762037761 + 13090.139670012 = $44,964 Mil.
Revenue was 13397.12275018 + 14958.731647487 + 15791.675826453 + 17272.367883284 = $61,420 Mil.
Gross Profit was 6702.5475161987 + 7674.5427654125 + 8316.0648837218 + 9609.2393242659 = $32,302 Mil.
Average Total Assets from the begining of this year (Mar21)
to the end of this year (Mar22) was
(103265.19320228 + 111327.89056875 + 120208.93488691 + 134254.31651176 + 140432.43421863) / 5 = $121897.75387767 Mil.
Total Assets at the begining of this year (Mar21) was $103,265 Mil.
Long-Term Debt & Capital Lease Obligation was $22,996 Mil.
Total Current Assets was $60,575 Mil.
Total Current Liabilities was $28,942 Mil.
Net Income was 4074.6314113914 + 4702.8656955657 + 5062.1035425435 + 4941.5951083015 = $18,781 Mil.

Revenue was 10475.724749851 + 12208.028537081 + 12819.000882888 + 12820.37582734 = $48,323 Mil.
Gross Profit was 5551.8051213565 + 6524.3978340315 + 6922.5505178545 + 6715.6295214074 = $25,714 Mil.
Average Total Assets from the begining of last year (Mar20)
to the end of last year (Mar21) was
(77771.550289574 + 82579.244173302 + 90268.287398406 + 97883.568711019 + 103265.19320228) / 5 = $90353.56875492 Mil.
Total Assets at the begining of last year (Mar20) was $77,772 Mil.
Long-Term Debt & Capital Lease Obligation was $10,632 Mil.
Total Current Assets was $40,320 Mil.
Total Current Liabilities was $23,406 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Taiwan Semiconductor Manufacturing Co's current Net Income (TTM) was 23,700. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Taiwan Semiconductor Manufacturing Co's current Cash Flow from Operations (TTM) was 44,964. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar21)
=23700.269402636/103265.19320228
=0.22950879

ROA (Last Year)=Net Income/Total Assets (Mar20)
=18781.195757802/77771.550289574
=0.24149185

Taiwan Semiconductor Manufacturing Co's return on assets of this year was 0.22950879. Taiwan Semiconductor Manufacturing Co's return on assets of last year was 0.24149185. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Taiwan Semiconductor Manufacturing Co's current Net Income (TTM) was 23,700. Taiwan Semiconductor Manufacturing Co's current Cash Flow from Operations (TTM) was 44,964. ==> 44,964 > 23,700 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar21 to Mar22
=22995.918864069/121897.75387767
=0.18864924

Gearing (Last Year: Mar21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar20 to Mar21
=10631.587007355/90353.56875492
=0.11766649

Taiwan Semiconductor Manufacturing Co's gearing of this year was 0.18864924. Taiwan Semiconductor Manufacturing Co's gearing of last year was 0.11766649. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar22)=Total Current Assets/Total Current Liabilities
=60575.409214492/28942.317340396
=2.09297025

Current Ratio (Last Year: Mar21)=Total Current Assets/Total Current Liabilities
=40320.317210444/23406.027670571
=1.72264674

Taiwan Semiconductor Manufacturing Co's current ratio of this year was 2.09297025. Taiwan Semiconductor Manufacturing Co's current ratio of last year was 1.72264674. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Taiwan Semiconductor Manufacturing Co's number of shares in issue this year was 5185.967. Taiwan Semiconductor Manufacturing Co's number of shares in issue last year was 5186.076. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=32302.394489599/61419.898107404
=0.52592719

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=25714.38299465/48323.12999716
=0.53213405

Taiwan Semiconductor Manufacturing Co's gross margin of this year was 0.52592719. Taiwan Semiconductor Manufacturing Co's gross margin of last year was 0.53213405. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar21)
=61419.898107404/103265.19320228
=0.59477832

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar20)
=48323.12999716/77771.550289574
=0.62134714

Taiwan Semiconductor Manufacturing Co's asset turnover of this year was 0.59477832. Taiwan Semiconductor Manufacturing Co's asset turnover of last year was 0.62134714. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+1+1+0+0
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Taiwan Semiconductor Manufacturing Co has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Taiwan Semiconductor Manufacturing Co  (NYSE:TSM) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Taiwan Semiconductor Manufacturing Co Piotroski F-Score Related Terms

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Taiwan Semiconductor Manufacturing Co Business Description

Taiwan Semiconductor Manufacturing Co logo
Address
No. 8, Li-Hsin Road 6, Hsinchu Science Park, Hsinchu, TWN, 300-096
Taiwan Semiconductor Manufacturing Company, or TSMC, is the world's largest dedicated chip foundry, with over 58% market share in 2020 per Gartner. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public as an ADR in the U.S. in 1997. TSMC's scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious customer base, including Apple, AMD and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs.

Taiwan Semiconductor Manufacturing Co Headlines

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