WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 757736% more annual revenue ($4.10T vs $541.53M). TSM leads profitability with a 46.5% profit margin vs 21.0%. SKYT trades at a lower P/E of 14.9x. TSM earns a higher WallStSmart Score of 84/100 (A-).

SKYT

Buy

60

out of 100

Grade: C

Growth: 10.0Profit: 5.5Value: 5.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.57

TSM

Exceptional Buy

84

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 6.7Quality: 9.0
Piotroski: 6/9Altman Z: 3.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SKYTSignificantly Overvalued (-24.6%)

Margin of Safety

-24.6%

Fair Value

$22.81

Current Price

$37.95

$15.14 premium

UndervaluedFair: $22.81Overvalued
TSMUndervalued (+49.5%)

Margin of Safety

+49.5%

Fair Value

$839.44

Current Price

$415.17

$424.27 discount

UndervaluedFair: $839.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SKYT5 strengths · Avg: 9.4/10
Return on EquityProfitability
63.2%10/10

Every $100 of equity generates 63 in profit

Revenue GrowthGrowth
162.1%10/10

Revenue surging 162.1% year-over-year

EPS GrowthGrowth
9733.0%10/10

Earnings expanding 9733.0% YoY

Profit MarginProfitability
21.0%9/10

Keeps 21 of every $100 in revenue as profit

P/E RatioValuation
14.9x8/10

Attractively priced relative to earnings

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.18T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
32.8%10/10

Every $100 of equity generates 33 in profit

Profit MarginProfitability
46.5%10/10

Keeps 47 of every $100 in revenue as profit

Operating MarginProfitability
58.1%10/10

Strong operational efficiency at 58.1%

Revenue GrowthGrowth
35.1%10/10

Revenue surging 35.1% year-over-year

EPS GrowthGrowth
58.4%10/10

Earnings expanding 58.4% YoY

Areas to Watch

SKYT4 concerns · Avg: 3.3/10
Price/BookValuation
10.3x4/10

Trading at 10.3x book value

Market CapQuality
$1.72B3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.323/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
36.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
63.5x2/10

Trading at 63.5x 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 21.0% and operating margin at -3.3%. Revenue growth of 162.1% 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 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.

Bear Case : SKYT

The primary concerns for SKYT are Price/Book, Market Cap, Debt/Equity.

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 3.32 — expect wider price swings.

SKYT is growing revenue faster at 162.1% — sustainability is the question.

TSM generates stronger free cash flow (377.1B), providing more financial flexibility.

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

Bottom Line

TSM scores higher overall (84/100 vs 60/100), backed by strong 46.5% margins and 35.1% 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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