Why NASDAQ:ASML Is a Standout High-Growth Stock in a Consolidation Phase.

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.

Evaluating Growth: NASDAQ:ASML

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. Measured over the last years, the EPS has been growing by 26.71% yearly.
• Looking at the last year, ASML shows a very strong growth in Revenue. The Revenue has grown by 30.16%.
• Measured over the past years, ASML shows a very strong growth in Revenue. The Revenue has been growing by 20.29% 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 20.08% yearly.
• ASML is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.02% yearly.

Unpacking NASDAQ:ASML's Health Rating

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:ASML was assigned a score of 7 for health:

• An Altman-Z score of 10.46 indicates that ASML is not in any danger for bankruptcy at the moment.
• ASML has a better Altman-Z score (10.46) than 77.78% of its industry peers.
• The Debt to FCF ratio of ASML is 1.36, which is an excellent value as it means it would take ASML, only 1.36 years of fcf income to pay off all of its debts.
• ASML has a Debt to FCF ratio of 1.36. This is in the better half of the industry: ASML outperforms 73.15% of its industry peers.
• A Debt/Equity ratio of 0.29 indicates that ASML is not too dependend on debt financing.
• Although ASML does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
• ASML does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Understanding NASDAQ:ASML's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:ASML scores a 9 out of 10:

• The Return On Assets of ASML (18.84%) is better than 92.59% of its industry peers.
• With an excellent Return On Equity value of 50.06%, ASML belongs to the best of the industry, outperforming 98.15% of the companies in the same industry.
• ASML has a Return On Invested Capital of 29.98%. This is amongst the best in the industry. ASML outperforms 99.07% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for ASML is significantly above the industry average of 10.84%.
• The last Return On Invested Capital (29.98%) for ASML is above the 3 year average (29.48%), which is a sign of increasing profitability.
• ASML has a Profit Margin of 29.45%. This is amongst the best in the industry. ASML outperforms 92.59% of its industry peers.
• In the last couple of years the Profit Margin of ASML has grown nicely.
• Looking at the Operating Margin, with a value of 34.52%, ASML belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
• ASML's Operating Margin has improved in the last couple of years.
• The Gross Margin of ASML (49.98%) is better than 64.81% of its industry peers.
• ASML's Gross Margin has improved in the last couple of years.

How do we evaluate the setup for NASDAQ:ASML?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:ASML exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

ASML has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 1023.33, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

Our latest full technical report of ASML contains the most current technical analsysis.

Keep in mind

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.