NASDAQ:ASML: a strong growth stock preparing for the next leg up?.

Last update: Feb 22, 2024

Exploring Growth Potential: ASML HOLDING NV-NY REG SHS (NASDAQ:ASML) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and ASML HOLDING NV-NY REG SHS has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected ASML HOLDING NV-NY REG SHS on our screen for growth with base formation, suggesting it merits a closer look.

Deciphering NASDAQ:ASML's Growth Rating

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:ASML was assigned a score of 8 for growth:

ASML shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.94%, which is quite impressive.
The Earnings Per Share has been growing by 23.59% on average over the past years. This is a very strong growth
ASML shows a strong growth in Revenue. In the last year, the Revenue has grown by 34.73%.
ASML shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.76% yearly.
ASML is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.01% yearly.
Based on estimates for the next years, ASML will show a quite strong growth in Revenue. The Revenue will grow by 13.48% on average per year.

Looking at the Health

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 9.58 indicates that ASML is not in any danger for bankruptcy at the moment.
ASML's Altman-Z score of 9.58 is amongst the best of the industry. ASML outperforms 80.95% 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.
ASML has a better Debt to FCF ratio (0.90) than 77.14% of its industry peers.
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.

Assessing Profitability for NASDAQ:ASML

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:ASML, the assigned 9 is noteworthy for profitability:

Looking at the Return On Assets, with a value of 19.80%, ASML belongs to the top of the industry, outperforming 92.38% of the companies in the same industry.
ASML has a Return On Equity of 60.17%. This is amongst the best in the industry. ASML outperforms 99.05% of its industry peers.
With an excellent Return On Invested Capital value of 33.91%, ASML belongs to the best of the industry, outperforming 99.05% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ASML is significantly above the industry average of 11.61%.
The 3 year average ROIC (25.12%) for ASML is below the current ROIC(33.91%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 30.39%, ASML belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
In the last couple of years the Profit Margin of ASML has grown nicely.
ASML's Operating Margin of 35.22% is amongst the best of the industry. ASML outperforms 91.43% of its industry peers.
ASML's Operating Margin has improved in the last couple of years.
ASML has a Gross Margin of 50.10%. This is in the better half of the industry: ASML outperforms 61.90% of its industry peers.
In the last couple of years the Gross Margin of ASML has grown nicely.

How does the Setup look for NASDAQ:ASML

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:ASML is 7:

ASML has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 908.20, 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.

Check the latest full fundamental report of ASML for a complete fundamental analysis.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.