WallStSmart

First Solar Inc (FSLR)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 72879% more annual revenue ($3.81T vs $5.22B). TSM leads profitability with a 45.1% profit margin vs 29.3%. FSLR appears more attractively valued with a PEG of 0.49. TSM earns a higher WallStSmart Score of 82/100 (A-).

FSLR

Exceptional Buy

82

out of 100

Grade: A-

Growth: 8.7Profit: 8.5Value: 9.3Quality: 6.3
Piotroski: 4/9Altman Z: 2.93

TSM

Exceptional Buy

82

out of 100

Grade: A-

Growth: 8.7Profit: 10.0Value: 6.0Quality: 9.0
Piotroski: 6/9Altman Z: 3.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FSLRUndervalued (+65.8%)

Margin of Safety

+65.8%

Fair Value

$665.03

Current Price

$190.29

$474.74 discount

UndervaluedFair: $665.03Overvalued
TSMUndervalued (+20.4%)

Margin of Safety

+20.4%

Fair Value

$484.85

Current Price

$326.74

$158.11 discount

UndervaluedFair: $484.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FSLR6 strengths · Avg: 8.8/10
PEG RatioValuation
0.4910/10

Growing faster than its price suggests

Operating MarginProfitability
32.6%10/10

Strong operational efficiency at 32.6%

Profit MarginProfitability
29.3%9/10

Keeps 29 of every $100 in revenue as profit

P/E RatioValuation
13.4x8/10

Attractively priced relative to earnings

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

EPS GrowthGrowth
32.3%8/10

Earnings expanding 32.3% YoY

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$1.69T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.1%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
45.1%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
53.9%10/10

Strong operational efficiency at 53.9%

Free Cash FlowQuality
$388.17B10/10

Generating 388.2B in free cash flow

Altman Z-ScoreHealth
3.8610/10

Safe zone — low bankruptcy risk

Areas to Watch

FSLR0 concerns · Avg: 0/10

No major concerns identified

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
31.5x4/10

Premium valuation, high expectations priced in

Price/BookValuation
50.0x2/10

Trading at 50.0x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : FSLR

The strongest argument for FSLR centers on PEG Ratio, Operating Margin, Profit Margin. Profitability is solid with margins at 29.3% and operating margin at 32.6%. Revenue growth of 11.1% 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 45.1% and operating margin at 53.9%. Revenue growth of 20.5% demonstrates continued momentum.

Bear Case : FSLR

No major red flags identified for FSLR, but monitor valuation.

Bear Case : TSM

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

Key Dynamics to Monitor

FSLR profiles as a mature stock while TSM is a growth play — different risk/reward profiles.

FSLR carries more volatility with a beta of 1.65 — expect wider price swings.

TSM is growing revenue faster at 20.5% — sustainability is the question.

TSM generates stronger free cash flow (388.2B), providing more financial flexibility.

Bottom Line

FSLR scores higher overall (82/100 vs 82/100), backed by strong 29.3% margins and 11.1% revenue growth. TSM offers better value entry with a 20.4% margin of safety. Both earn "Exceptional Buy" and "Exceptional 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.

First Solar Inc

TECHNOLOGY · SOLAR · USA

First Solar, Inc. offers solar photovoltaic (PV) solutions in the United States, Japan, France, Canada, India, Australia, and internationally. The company is headquartered in Tempe, Arizona.

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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