ASML HOLDING NV (ASME.DE) Stock Fundamental Analysis
FRA:ASME - Deutsche Boerse Ag - NL0010273215 - Common Stock - Currency: EUR
Taking everything into account, ASME scores 6 out of 10 in our fundamental rating. ASME was compared to 56 industry peers in the Semiconductors & Semiconductor Equipment industry. While ASME has a great profitability rating, there are some minor concerns on its financial health. ASME is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ASME was profitable.
ASME had a positive operating cash flow in the past year.
ASME had positive earnings in 4 of the past 5 years.
ASME had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.75%, ASME is in the better half of the industry, outperforming 76.79% of the companies in the same industry.
The Return On Equity of ASME (41.56%) is better than 92.86% of its industry peers.
ASME has a Return On Invested Capital of 25.97%. This is amongst the best in the industry. ASME outperforms 89.29% of its industry peers.
ASME had an Average Return On Invested Capital over the past 3 years of 29.48%. This is significantly above the industry average of 16.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.75% | ||
| ROE | 41.56% | ||
| ROIC | 25.97% |
ROA(3y)18.13%
ROA(5y)15.59%
ROE(3y)52.84%
ROE(5y)40.26%
ROIC(3y)29.48%
ROIC(5y)23.28%
1.3 Margins
ASME's Profit Margin of 29.16% is amongst the best of the industry. ASME outperforms 92.86% of its industry peers.
In the last couple of years the Profit Margin of ASME has grown nicely.
The Operating Margin of ASME (34.01%) is better than 87.50% of its industry peers.
ASME's Operating Margin has improved in the last couple of years.
ASME has a better Gross Margin (50.63%) than 71.43% of its industry peers.
In the last couple of years the Gross Margin of ASME has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.01% | ||
| PM (TTM) | 29.16% | ||
| GM | 50.63% |
OM growth 3Y4.37%
OM growth 5Y5.55%
PM growth 3Y3.65%
PM growth 5Y5%
GM growth 3Y3.14%
GM growth 5Y3%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ASME is creating value.
ASME has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 8.43 indicates that ASME is not in any danger for bankruptcy at the moment.
ASME's Altman-Z score of 8.43 is fine compared to the rest of the industry. ASME outperforms 78.57% of its industry peers.
The Debt to FCF ratio of ASME is 1.54, which is an excellent value as it means it would take ASME, only 1.54 years of fcf income to pay off all of its debts.
ASME has a Debt to FCF ratio of 1.54. This is in the better half of the industry: ASME outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that ASME is not too dependend on debt financing.
ASME's Debt to Equity ratio of 0.26 is in line compared to the rest of the industry. ASME outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.54 | ||
| Altman-Z | 8.43 |
ROIC/WACC2.24
WACC11.6%
2.3 Liquidity
ASME has a Current Ratio of 1.50. This is a normal value and indicates that ASME is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.50, ASME is doing worse than 75.00% of the companies in the same industry.
A Quick Ratio of 0.82 indicates that ASME may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.82, ASME is doing worse than 78.57% of the companies in the same industry.
The current and quick ratio evaluation for ASME 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for ASME have decreased by -2.38% in the last year.
Measured over the past years, ASME shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.85% on average per year.
EPS 1Y (TTM)-2.38%
EPS 3Y10.58%
EPS 5Y25.85%
EPS Q2Q%34.95%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%31.26%
3.2 Future
The Earnings Per Share is expected to grow by 18.52% on average over the next years. This is quite good.
Based on estimates for the next years, ASME will show a quite strong growth in Revenue. The Revenue will grow by 12.61% on average per year.
EPS Next Y21.83%
EPS Next 2Y22.88%
EPS Next 3Y23.82%
EPS Next 5Y18.52%
Revenue Next Year14.42%
Revenue Next 2Y13.96%
Revenue Next 3Y13.84%
Revenue Next 5Y12.61%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 36.67 indicates a quite expensive valuation of ASME.
ASME's Price/Earnings is on the same level as the industry average.
ASME is valuated rather expensively when we compare the Price/Earnings ratio to 28.58, which is the current average of the S&P500 Index.
ASME is valuated quite expensively with a Price/Forward Earnings ratio of 30.11.
Based on the Price/Forward Earnings ratio, ASME is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
ASME's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 95.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.67 | ||
| Fwd PE | 30.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASME is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ASME is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 95.11 | ||
| EV/EBITDA | 29.05 |
4.3 Compensation for Growth
ASME's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ASME may justify a higher PE ratio.
A more expensive valuation may be justified as ASME's earnings are expected to grow with 23.82% in the coming years.
PEG (NY)1.68
PEG (5Y)1.42
EPS Next 2Y22.88%
EPS Next 3Y23.82%
5. Dividend
5.1 Amount
ASME has a yearly dividend return of 0.91%, which is pretty low.
ASME's Dividend Yield is comparable with the industry average which is at 1.49.
Compared to an average S&P500 Dividend Yield of 2.28, ASME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
On average, the dividend of ASME grows each year by 33.46%, which is quite nice.
Dividend Growth(5Y)33.46%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
32.36% of the earnings are spent on dividend by ASME. This is a low number and sustainable payout ratio.
ASME's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.36%
EPS Next 2Y22.88%
EPS Next 3Y23.82%
ASML HOLDING NV
FRA:ASME (2/4/2025, 7:00:00 PM)
712.2
+2.1 (+0.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners52.27%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap284.58B
Analysts80
Price Target864.23 (21.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend5.96
Dividend Growth(5Y)33.46%
DP32.36%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.68%
Min EPS beat(2)6.94%
Max EPS beat(2)10.42%
EPS beat(4)4
Avg EPS beat(4)6.79%
Min EPS beat(4)2.72%
Max EPS beat(4)10.42%
EPS beat(8)8
Avg EPS beat(8)8.94%
EPS beat(12)12
Avg EPS beat(12)8.68%
EPS beat(16)15
Avg EPS beat(16)10.25%
Revenue beat(2)1
Avg Revenue beat(2)-1.05%
Min Revenue beat(2)-3.8%
Max Revenue beat(2)1.71%
Revenue beat(4)2
Avg Revenue beat(4)-0.47%
Min Revenue beat(4)-3.8%
Max Revenue beat(4)2.74%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.01%
PT rev (3m)-0.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.28%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.67 | ||
| Fwd PE | 30.11 | ||
| P/S | 11.19 | ||
| P/FCF | 95.11 | ||
| P/OCF | 46.46 | ||
| P/B | 15.94 | ||
| P/tB | 31.91 | ||
| EV/EBITDA | 29.05 |
EPS(TTM)19.42
EY2.73%
EPS(NY)23.66
Fwd EY3.32%
FCF(TTM)7.49
FCFY1.05%
OCF(TTM)15.33
OCFY2.15%
SpS63.67
BVpS44.68
TBVpS22.32
PEG (NY)1.68
PEG (5Y)1.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.75% | ||
| ROE | 41.56% | ||
| ROCE | 30.74% | ||
| ROIC | 25.97% | ||
| ROICexc | 31.6% | ||
| ROICexgc | 51.5% | ||
| OM | 34.01% | ||
| PM (TTM) | 29.16% | ||
| GM | 50.63% | ||
| FCFM | 11.76% |
ROA(3y)18.13%
ROA(5y)15.59%
ROE(3y)52.84%
ROE(5y)40.26%
ROIC(3y)29.48%
ROIC(5y)23.28%
ROICexc(3y)44.3%
ROICexc(5y)34.53%
ROICexgc(3y)99.52%
ROICexgc(5y)75.22%
ROCE(3y)34.89%
ROCE(5y)27.56%
ROICexcg growth 3Y14.86%
ROICexcg growth 5Y14.44%
ROICexc growth 3Y19.08%
ROICexc growth 5Y18.21%
OM growth 3Y4.37%
OM growth 5Y5.55%
PM growth 3Y3.65%
PM growth 5Y5%
GM growth 3Y3.14%
GM growth 5Y3%
F-Score6
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.54 | ||
| Debt/EBITDA | 0.47 | ||
| Cap/Depr | 279.36% | ||
| Cap/Sales | 12.31% | ||
| Interest Coverage | 51.88 | ||
| Cash Conversion | 62.66% | ||
| Profit Quality | 40.33% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 8.43 |
F-Score6
WACC11.6%
ROIC/WACC2.24
Cap/Depr(3y)246.99%
Cap/Depr(5y)212.26%
Cap/Sales(3y)10.19%
Cap/Sales(5y)10.45%
Profit Quality(3y)105.74%
Profit Quality(5y)102.48%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.38%
EPS 3Y10.58%
EPS 5Y25.85%
EPS Q2Q%34.95%
EPS Next Y21.83%
EPS Next 2Y22.88%
EPS Next 3Y23.82%
EPS Next 5Y18.52%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%31.26%
Revenue Next Year14.42%
Revenue Next 2Y13.96%
Revenue Next 3Y13.84%
Revenue Next 5Y12.61%
EBIT growth 1Y-4.96%
EBIT growth 3Y30.87%
EBIT growth 5Y26.96%
EBIT Next Year9.39%
EBIT Next 3Y17.64%
EBIT Next 5Y17.64%
FCF growth 1Y-67.69%
FCF growth 3Y-2.7%
FCF growth 5Y6.05%
OCF growth 1Y-44.62%
OCF growth 3Y7.19%
OCF growth 5Y14.18%