NASDAQ:ASML—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether ASML HOLDING NV-NY REG SHS (NASDAQ:ASML) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but ASML HOLDING NV-NY REG SHS has surfaced on our radar for growth with base formation, warranting further examination.

Growth Assessment of NASDAQ:ASML

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:ASML boasts a 8 out of 10:

• The Earnings Per Share has grown by an impressive 34.94% over the past year.
• The Earnings Per Share has been growing by 23.59% on average over the past years. This is a very strong growth
• The Revenue has grown by 34.73% in the past year. This is a very strong growth!
• Measured over the past years, ASML shows a quite strong growth in Revenue. The Revenue has been growing by 18.76% on average per year.
• ASML is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.25% yearly.
• The Revenue is expected to grow by 13.40% on average over the next years. This is quite good.

Assessing Health for NASDAQ:ASML

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:ASML has achieved a 7 out of 10:

• An Altman-Z score of 7.08 indicates that ASML is not in any danger for bankruptcy at the moment.
• The Altman-Z score of ASML (7.08) is better than 76.19% of its industry peers.
• ASML has a debt to FCF ratio of 0.90. This is a very positive value and a sign of high solvency as it would only need 0.90 years to pay back of all of its debts.
• With a decent Debt to FCF ratio value of 0.90, ASML is doing good in the industry, outperforming 78.10% of the companies in the same industry.
• ASML has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
• Even though the debt/equity ratio score it not favorable for ASML, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
• The current and quick ratio evaluation for ASML is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Profitability Assessment of NASDAQ:ASML

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:ASML, the assigned 9 is a significant indicator of profitability:

• ASML has a Return On Assets of 19.80%. This is amongst the best in the industry. ASML outperforms 90.48% of its industry peers.
• Looking at the Return On Equity, with a value of 60.17%, ASML belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
• The Return On Invested Capital of ASML (33.91%) is better than 100.00% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for ASML is significantly above the industry average of 12.74%.
• The last Return On Invested Capital (33.91%) for ASML is above the 3 year average (25.12%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 30.39%, ASML belongs to the top of the industry, outperforming 89.52% of the companies in the same industry.
• In the last couple of years the Profit Margin of ASML has grown nicely.
• Looking at the Operating Margin, with a value of 35.21%, ASML belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
• In the last couple of years the Operating Margin of ASML has grown nicely.
• In the last couple of years the Gross Margin of ASML has grown nicely.

Looking at the Setup

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:ASML is 8:

ASML has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 594.37, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of ASML

For an up to date full technical analysis you can check the technical report of ASML

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.