Taiwan Semiconductor Manufacturing Company Ltd. TSM
- Market cap
- $2.40T
- P/E
- 33.1×
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Taiwan Semiconductor Manufacturing Company Ltd. (TSM) Piotroski F-score
Taiwan Semiconductor Manufacturing Company Ltd.'s Piotroski F-score for fiscal 2025 is 8 out of 9: 8 of nine tests of profitability, leverage and efficiency passed, down from 9 in fiscal 2024.
Piotroski F-score, annual
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Annual
| Period | Piotroski F-score | Change (points) |
|---|---|---|
| FY2025 | 8 | (1.00) |
| FY2024 | 9 | 3.00 |
| FY2023 | 6 | (1.00) |
| FY2022 | 7 | 3.00 |
| FY2021 | 4 | (4.00) |
| FY2020 | 8 | 3.00 |
| FY2019 | 5 | (1.00) |
| FY2018 | 6 | (1.00) |
| FY2017 | 7 | 2.00 |
| FY2016 | 5 | — |
How fiscal 2025’s score is made up
| Test | This year | Year before | Result | Points |
|---|---|---|---|---|
| Positive return on assets | 23.69% | 18.36% | Pass | 1 |
| Positive operating cash flow | 72.52b | 55.69b | Pass | 1 |
| Rising return on assets | 23.69% | 18.36% | Pass | 1 |
| Cash flow above net income | 18.41b | 20.37b | Pass | 1 |
| Falling long-term leverage | 0.13 | 0.16 | Pass | 1 |
| Rising current ratio | 2.51 | 2.36 | Pass | 1 |
| No new shares issued | 5,185,660,000 | 5,185,520,000 | Fail | 0 |
| Rising gross margin | 59.89% | 56.12% | Pass | 1 |
| Rising asset turnover | 0.53 | 0.46 | Pass | 1 |
| Piotroski F-score | Strong — most fundamentals improved | 8 | ||
How the Piotroski F-score works
One point for each of nine tests, this fiscal year against the one before: positive return on assets, positive operating cash flow, rising return on assets, cash flow above net income, falling long-term leverage, a rising current ratio, no new shares issued, a rising gross margin and rising asset turnover. The ratios are the ones on this site, so each can be checked.
Joseph Piotroski (2000) called 8–9 high and 0–1 low; reading it in three bands is the common convention:
| 7–9 | Strong — most fundamentals improved |
|---|---|
| 4–6 | Mixed |
| 0–3 | Weak — most fundamentals deteriorated |
Where this differs from the paper: return on assets is on average rather than beginning-of-year assets, and weighted basic shares stand in for shares issued. The score is shown only when all nine tests can be worked out, which takes three fiscal years; banks and insurers, which report no current assets or gross profit, have none.
Piotroski F-score against peers
| Company | Piotroski F-score |
|---|---|
| TSM Taiwan Semiconductor Manufacturing Company Ltd. | 8 |
| MRVL Marvell Technology, Inc. compare | 8 |
| MU Micron Technology, Inc. compare | 7 |
| AVGO Broadcom Inc. compare | 7 |
| AMD Advanced Micro Devices, Inc. compare | 7 |
| TXN Texas Instruments Incorporated compare | 7 |
| INTC Intel Corporation compare | 6 |
| NVDA NVIDIA Corporation compare | 4 |
| ARM ARM Holdings PLC Sponsored ADR compare | — |
What Piotroski F-score is
The Piotroski F-Score tells an investor how many signs of improving profitability, funding and efficiency a company shows against a year earlier.
One point for each of nine tests against a year earlier: positive return on assets, positive operating cash flow, rising return on assets, cash flow above net income, falling long-term leverage, rising current ratio, no new shares issued, rising gross margin, and rising asset turnover