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Taiwan Semiconductor Scores High in Investment Analysis

Taiwan Semiconductor MFG. CO. LTD. (ADR) earns a 93% rating based on solid fundamentals and valuation. The company meets key criteria in the Patient Investor model driven by Warren Buffett, indicating strong investor interest.

Date: 
AI Rating:   8
Strong Performance Indicators for TSM

According to the report, TAIWAN SEMICONDUCTOR MFG. CO. LTD. (ADR) (TSM) demonstrates a robust rating of 93% through the Patient Investor strategy, which reflects strong fundamentals aligned with long-term profitability and low debt levels. This suggests a high likelihood of future stability and growth in earnings, which can significantly impact investor sentiment positively.

In terms of evaluation metrics, TSM also exhibits excellent performance across several key areas:

  • Earnings Predictability: PASS
  • Debt Service: PASS
  • Return on Equity (ROE): PASS
  • Return on Total Capital: PASS
  • Free Cash Flow (FCF): PASS
  • Use of Retained Earnings: PASS
  • Share Repurchase: PASS
  • Initial Rate of Return: PASS
  • Expected Return: PASS

With consistently strong ratings across these critical assessments, TSM appears to be on solid ground. The indication of healthy free cash flow and return on equity suggests that TSM maintains a strong cash position allowing for reinvestment and shareholder returns, enhancing its power against market volatility.

Furthermore, achieving a score above 90% underlines that both institutional and retail investors may view TSM as an attractive investment opportunity, posing a less risky profile compared to its peers in the Semiconductors industry.

Stocks:  TSM