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

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether ASML HOLDING NV-NY REG SHS (NASDAQ:ASML) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but ASML HOLDING NV-NY REG SHS has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Growth Assessment of NASDAQ:ASML

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:ASML, the assigned 8 reflects its growth potential:

• 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.
• The Earnings Per Share is expected to grow by 20.08% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 14.02% on average over the next years. This is quite good.

Deciphering 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 10.68 indicates that ASML is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 10.68, ASML is in the better half of the industry, outperforming 76.64% of the companies in the same industry.
• ASML has a debt to FCF ratio of 1.36. This is a very positive value and a sign of high solvency as it would only need 1.36 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.36, ASML is in the better half of the industry, outperforming 72.90% of the companies in the same industry.
• A Debt/Equity ratio of 0.29 indicates that ASML is not too dependend on debt financing.
• 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.

Understanding NASDAQ:ASML's Profitability

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 18.84%. This is amongst the best in the industry. ASML outperforms 93.46% of its industry peers.
• ASML's Return On Equity of 50.06% is amongst the best of the industry. ASML outperforms 98.13% of its industry peers.
• ASML has a better Return On Invested Capital (29.98%) than 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.
• The Profit Margin of ASML (29.45%) is better than 92.52% 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 94.39% of the companies in the same industry.
• ASML's Operating Margin has improved in the last couple of years.
• ASML has a Gross Margin of 49.98%. This is in the better half of the industry: ASML outperforms 64.49% of its industry peers.
• In the last couple of years the Gross Margin of ASML has grown nicely.

Why is NASDAQ:ASML a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:ASML has a 8 as its setup rating:

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 1022.72, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

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

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.