Is ASML HOLDING NV-NY REG SHS (NASDAQ:ASML) a Strong Candidate for Quality Investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if ASML HOLDING NV-NY REG SHS (NASDAQ:ASML) is suited for quality investing. Investors should of course do their own research, but we spotted ASML HOLDING NV-NY REG SHS showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

• ASML HOLDING NV-NY REG SHS has shown strong performance in revenue growth over the past 5 years, with a 20.29% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a notable ROIC excluding cash and goodwill at 71.41%, ASML HOLDING NV-NY REG SHS demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• ASML HOLDING NV-NY REG SHS demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.36, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a favorable Profit Quality (5-year) ratio of 102.0%, ASML HOLDING NV-NY REG SHS showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• With a robust 5-year EBIT growth of 26.96%, ASML HOLDING NV-NY REG SHS showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• ASML HOLDING NV-NY REG SHS demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Taking everything into account, ASML scores 7 out of 10 in our fundamental rating. ASML was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. ASML gets an excellent profitability rating and is at the same time showing great financial health properties. ASML is valued quite expensively, but it does show have an excellent growth rating. These ratings would make ASML suitable for growth and quality investing!

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This article should in no way be interpreted as advice. 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.