Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has recently been identified as an interesting stock but more in-depth monitoring is needed for a trade decision. Now trading with a market value of 213.87B, the company has a mix of catalysts and obstacles that spring from the nature of its operations. As the day-to-day narrative ebbs and flows for this company, it is more important than ever to step back and get a bird’s eye view of the fundamental reality under the surface of this story.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 91.02 billion in free cash flow last quarter, representing a quarterly net change in cash of 24.39 billion. Perhaps most importantly where cash movements are concerned, the company saw about 162.87 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 233.28 billion in total revenues. That represents a quarterly year/year change in revenues of 0.09 in sequential terms, the TSM saw sales decline by -0.06.
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 121.75 billion, yielding a gross basic income of 111.53 billion. For shareholders, given the total diluted outstanding shares of 25.93 billion, this means overall earnings per share of 2.79. Note, this compares with a consensus analyst forecast of 0.71 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 2.52 in total earnings per share. If we consider a median price to earnings ratio on the stock, that corresponds with a stock price of 16.40. 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.