WallStSmart

Skywater Technology Inc (SKYT)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 694984% more annual revenue ($4.44T vs $638.84M). TSM leads profitability with a 49.9% profit margin vs 18.4%. SKYT trades at a lower P/E of 13.9x. TSM earns a higher WallStSmart Score of 86/100 (A).

SKYT

Buy

59

out of 100

Grade: C

Growth: 10.0Profit: 6.5Value: 5.7Quality: 5.0
Piotroski: 3/9Altman Z: 1.07

TSM

Exceptional Buy

86

out of 100

Grade: A

Growth: 9.3Profit: 10.0Value: 7.3Quality: 9.0
Piotroski: 6/9Altman Z: 3.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SKYTOvervalued (-5.5%)

Margin of Safety

-5.5%

Fair Value

$26.93

Current Price

$32.46

$5.53 premium

UndervaluedFair: $26.93Overvalued
TSMUndervalued (+50.6%)

Margin of Safety

+50.6%

Fair Value

$889.36

Current Price

$433.24

$456.12 discount

UndervaluedFair: $889.36Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SKYT5 strengths · Avg: 9.6/10
Return on EquityProfitability
63.2%10/10

Every $100 of equity generates 63 in profit

Revenue GrowthGrowth
164.8%10/10

Revenue surging 164.8% year-over-year

EPS GrowthGrowth
9733.0%10/10

Earnings expanding 9733.0% YoY

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

P/E RatioValuation
13.9x8/10

Attractively priced relative to earnings

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.22T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
49.9%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
60.3%10/10

Strong operational efficiency at 60.3%

Revenue GrowthGrowth
36.0%10/10

Revenue surging 36.0% year-over-year

EPS GrowthGrowth
77.4%10/10

Earnings expanding 77.4% YoY

Areas to Watch

SKYT4 concerns · Avg: 3.3/10
Price/BookValuation
8.8x4/10

Trading at 8.8x book value

Market CapQuality
$1.60B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
1.2%3/10

Operating margin of 1.2%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
31.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
88.6x2/10

Trading at 88.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : SKYT

The strongest argument for SKYT centers on Return on Equity, Revenue Growth, EPS Growth. Profitability is solid with margins at 18.4% and operating margin at 1.2%. Revenue growth of 164.8% demonstrates continued momentum.

Bull Case : TSM

The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.

Bear Case : SKYT

The primary concerns for SKYT are Price/Book, Market Cap, Operating Margin.

Bear Case : TSM

The primary concerns for TSM are P/E Ratio, Price/Book.

Key Dynamics to Monitor

SKYT carries more volatility with a beta of 3.27 — expect wider price swings.

SKYT is growing revenue faster at 164.8% — sustainability is the question.

TSM generates stronger free cash flow (287.4B), providing more financial flexibility.

Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TSM scores higher overall (86/100 vs 59/100), backed by strong 49.9% margins and 36.0% revenue growth. Both earn "Exceptional Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Skywater Technology Inc

TECHNOLOGY · SEMICONDUCTORS · USA

SkyWater Technology, Inc. manufactures integrated circuits. The company is headquartered in Bloomington, Minnesota.

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Taiwan Semiconductor Manufacturing

TECHNOLOGY · SEMICONDUCTORS · USA

Taiwan Semiconductor Manufacturing Company, Limited is a Taiwanese multinational semiconductor contract manufacturing and design company. It is one of Taiwan's largest companies, the world's most valuable semiconductor company, and the world's largest dedicated independent (pure-play) semiconductor foundry, with its headquarters and main operations located in the Hsinchu Science Park in Hsinchu, Taiwan. It is majority owned by foreign investors.

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