Does Taiwan Semiconductor Manufacturing Company Limited have an economic moat?

Taiwan Semiconductor Manufacturing Company Limited (TSM) has a Quality factor score of 85/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage: the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the financial characteristics of a moated business.

Is Taiwan Semiconductor Manufacturing Company Limited a buy, hold, or sell?

MoatMap's current signal for Taiwan Semiconductor Manufacturing Company Limited (TSM) is Buy, based on a StockRank of 79/100. Signals are derived mechanically from the StockRank composite and should be one input among many; combine with your own thesis on management, competitive position, and valuation.

What sector is Taiwan Semiconductor Manufacturing Company Limited in?

Taiwan Semiconductor Manufacturing Company Limited (TSM) operates in the Technology sector, specifically the Semiconductors industry (Taiwan).

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TSM

Buy

Taiwan Semiconductor Manufacturing Company Limited · Technology · Taiwan · $2.2T · Avg Vol: $4.9B/d

StockRank

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P/E (TTM)

31.1x

ROE

40.0%

D/E

0.2x

Dividend %

0.9%

COMPANY DESCRIPTION

Taiwan Semiconductor Manufacturing Company (TSMC) is the world's largest dedicated independent semiconductor foundry, providing advanced integrated circuit manufacturing services to fabless design companies. It maintains a dominant market position due to its technological leadership in leading-edge process nodes and massive capital investments, acting as a critical supplier for major global tech companies.

FINANCIAL SUMMARY (USD)

Year	2022	2023	2024	2025	CAGR	TTM	2026E	2027E	Fwd CAGR
Revenue	71.6B	68.3B	91.5B	120.4B	18.9%	139.6B	171.8B	230.5B	38.4%
EPS	30.98	25.56	35.77	52.37	19.1%	13.45	83.10	—	58.7%
Shares	5.2B	5.2B	5.2B	5.2B	0.0%	5.2B	—	—	—
Debt	28.1B	30.2B	33.1B	33.7B	6.2%	33.6B	—	—	—
Equity	91.8B	108.4B	134.2B	169.3B	22.6%	—	—	—	—
Op CF	50.9B	39.3B	57.7B	71.9B	12.2%	82.8B	—	—	—
Inv CF	-37.7B	-28.6B	-27.3B	-36.2B	—	—	—	—	—
Fin CF	-6.3B	-6.5B	-10.9B	-13.9B	—	—	—	—	—

Loading 1Y...

PRICE (1Y)+3.8%

SMA 50SMA 200

$417.52

RSI (14)

49.4

52W High

$479.00

From 52W High

0.9%

SCORE BREAKDOWN

Quality

ROIC

40.3%96.8

ROE

40.0%94.5

GP/Assets

36.0%75.7

Op. Margin

60.3%99.2

FCF/Assets

14.3%88.1

Piotroski

999.1

Int. Cover

50.0x84.9

D/E Ratio

0.17x55.0

Current Ratio

2.46x63.4

Value

P/E (TTM)

31.1x48.4

EV/EBITDA

149.8x5.7

P/FCF

60.6x31.2

P/B

2734.2x0.1

P/S

15.5x11.3

Div Yield

0.9%35.8

Momentum

52W High %

87%84.4

RS 6M

-1%54.5

SMA 50/200

1.15x72.4

EPS Rev 4W

+2.3%70.4

EPS Rev 12W

+11.6%83.7

EPS Improve

+62%44.0

Q Growth

77%67.4

FUNDAMENTALS

Market Cap

$2.2T

P/E (Forward)

19.2x

Gross Margin

64.2%

SECTOR PEERS

Closest peers in Technology, ranked by industry match, size, and score similarity. Cross-listings of TSM are excluded.

Ticker	Company	Mkt Cap	StockRank	Signal
TSM	Taiwan Semiconductor Manufacturing Company Limited(you)	$2.2T	79	Buy
AVGO34.SA	Broadcom Inc.	$1.7T	79	Buy
SKHY	SK hynix Inc.	$1.1T	71	Buy
AMD	Advanced Micro Devices, Inc.	$760.0B	78	Buy
NVDA	NVIDIA Corporation	$5.3T	87	Strong Buy
MU	Micron Technology, Inc.	$1.1T	97	Strong Buy
TII.DE	Texas Instruments Incorporated	$234.2B	75	Buy
QCOM	QUALCOMM Incorporated	$175.4B	76	Buy
ADI.MX	Analog Devices, Inc.	$182.6B	74	Buy
2454.TW	MediaTek Inc.	$187.3B	72	Buy

Peer medians: ROE 7.5% · P/E 29.9x · Gross margin 33.3%

Taiwan Semiconductor Manufacturing Company Limited (TSM): Stock Score Summary

Taiwan Semiconductor Manufacturing Company Limited (TSM) has a MoatMap StockRank of 79/100 based on Quality (85/100), Value (22/100), and Momentum (68/100) factor scores. The current signal is BUY.

Key Financial Metrics

Price	$417.52
Market Cap	$2.2T
P/E (TTM)	31.06
P/E (Forward)	19.18
Price/Book	2734.21
Return on Equity	40.0%
Return on Invested Capital	40.3%
Debt/Equity	0.17x
Gross Margin	64.2%
Operating Margin	60.3%
Revenue Growth	36.0%
Dividend Yield	0.9%
Free Cash Flow	$35.7B

Taiwan Semiconductor Manufacturing Company Limited operates in the Semiconductors industry, part of the Technology sector (Taiwan).

Frequently Asked Questions

What is Taiwan Semiconductor Manufacturing Company Limited’s (TSM) StockRank?: MoatMap’s StockRank for Taiwan Semiconductor Manufacturing Company Limited (TSM) is 79/100, with a Buy signal. It is a composite of Quality (85), Value (22), and Momentum (68) factor ranks across MoatMap’s 20,000+ stock universe.
Does Taiwan Semiconductor Manufacturing Company Limited have an economic moat?: Taiwan Semiconductor Manufacturing Company Limited (TSM) has a Quality factor score of 85/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage: the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Taiwan Semiconductor Manufacturing Company Limited a buy, hold, or sell?: MoatMap’s current signal for Taiwan Semiconductor Manufacturing Company Limited (TSM) is Buy, based on a StockRank of 79/100. Signals are derived mechanically from the StockRank composite and should be one input among many; combine with your own thesis on management, competitive position, and valuation.
What sector is Taiwan Semiconductor Manufacturing Company Limited in?: Taiwan Semiconductor Manufacturing Company Limited (TSM) operates in the Technology sector, specifically the Semiconductors industry (Taiwan).