It is interesting to note that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is active and made a solid movement in the last trading day. Now trading with a market value of 233.32B, the company has a mix of catalysts and obstacles that spring from the nature of its operations. Everyone seems to have their own opinion of this stock. But what do the numbers really say? We think it’s a great time to take a fresh look.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) Fundamentals That Matter
It’s generally a good idea to start with the most fundamental piece of the picture: the balance sheet. The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. The trend over time is important to note. In this case, the company’s debt has been growing.
Taiwan Semiconductor Manufacturing Company Limited (TSM) saw 61.15 billion in free cash flow last quarter, representing a quarterly net change in cash of -161.23 billion. Perhaps most importantly where cash movements are concerned, the company saw about 122.87 billion in net operating cash flow.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) Revenue Growth Potential
As far as key trends that demonstrate something of the future investment potential of this stock, we need to take a closer look at the top line, first and foremost. Last quarter, the company saw 277.57 billion in total revenues. That represents a quarterly year/year change in revenues of 0.06 in sequential terms, the TSM saw sales decline by 0.10.
But what about the bottom line? After all, that’s what really matters in the end. Taiwan Semiconductor Manufacturing Company Limited (TSM) is intriguing when broken down to its core data. The cost of selling goods last quarter was 138.82 billion, yielding a gross basic income of 138.75 billion. Note, this compares with a consensus analyst forecast of 0.6 in earnings per share for its next fiscal quarterly report.
Is Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) Valuation Attractive
Looking ahead at valuations, according to the consensus, the next fiscal year is forecast to bring about 2.74 in total earnings per share. If we consider a median price to earnings ratio on the stock, that corresponds with a stock price of 15.17. However, one should always remember: the trends are more important than the forecasts. This continues to be an interesting story, and we look forward to updating it again soon on Taiwan Semiconductor Manufacturing Company Limited.