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

Last update: Nov 22, 2024

In this article, we'll take a closer look at ASML HOLDING NV-NY REG SHS (NASDAQ:ASML) as a potential candidate for growth investing. While it's important for investors to conduct their own research, ASML HOLDING NV-NY REG SHS has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Assessing Growth Metrics for 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:

The Earnings Per Share has been growing by 26.71% on average over the past years. This is a very strong growth
The Revenue has grown by 30.16% in the past year. This is a very strong growth!
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.
Based on estimates for the next years, ASML will show a very strong growth in Earnings Per Share. The EPS will grow by 20.08% on average per year.
ASML is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.02% yearly.

How We Gauge Health for NASDAQ:ASML

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:

ASML has an Altman-Z score of 7.68. This indicates that ASML is financially healthy and has little risk of bankruptcy at the moment.
ASML has a better Altman-Z score (7.68) than 72.22% of its industry peers.
The Debt to FCF ratio of ASML is 1.54, which is an excellent value as it means it would take ASML, only 1.54 years of fcf income to pay off all of its debts.
ASML has a better Debt to FCF ratio (1.54) than 75.00% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that ASML is not too dependend on debt financing.
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.

Looking at the Profitability

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:

With an excellent Return On Assets value of 16.75%, ASML belongs to the best of the industry, outperforming 89.81% of the companies in the same industry.
ASML has a Return On Equity of 41.56%. This is amongst the best in the industry. ASML outperforms 95.37% of its industry peers.
The Return On Invested Capital of ASML (25.97%) is better than 96.30% of its industry peers.
ASML had an Average Return On Invested Capital over the past 3 years of 29.48%. This is significantly above the industry average of 11.05%.
ASML's Profit Margin of 29.16% is amongst the best of the industry. ASML outperforms 90.74% 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 34.01%, ASML belongs to the top of the industry, outperforming 93.52% of the companies in the same industry.
In the last couple of years the Operating Margin of ASML has grown nicely.
Looking at the Gross Margin, with a value of 50.63%, ASML is in the better half of the industry, outperforming 65.74% of the companies in the same industry.
ASML's Gross Margin has improved in the last couple of years.

Why is NASDAQ:ASML a 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 7:

ASML has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 658.62, a Stop Loss order could be placed below this zone.

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

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.