ASML HOLDING NV (ASME.DE) Stock Fundamental Analysis
FRA:ASME - Deutsche Boerse Ag - NL0010273215 - Common Stock - Currency: EUR
Taking everything into account, ASME scores 7 out of 10 in our fundamental rating. ASME was compared to 51 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making ASME a very profitable company, without any liquidiy or solvency issues. ASME is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make ASME suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year ASME was profitable.
In the past year ASME had a positive cash flow from operations.
In the past 5 years ASME has always been profitable.
ASME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 15.58%, ASME belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
ASME's Return On Equity of 40.98% is amongst the best of the industry. ASME outperforms 92.16% of its industry peers.
Looking at the Return On Invested Capital, with a value of 25.98%, ASME belongs to the top of the industry, outperforming 92.16% of the companies in the same industry.
ASME had an Average Return On Invested Capital over the past 3 years of 27.90%. This is significantly above the industry average of 15.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.58% | ||
| ROE | 40.98% | ||
| ROIC | 25.98% |
ROA(3y)16.96%
ROA(5y)16.56%
ROE(3y)49.24%
ROE(5y)44.73%
ROIC(3y)27.9%
ROIC(5y)25.53%
1.3 Margins
With an excellent Profit Margin value of 26.79%, ASME belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
ASME's Profit Margin has improved in the last couple of years.
ASME has a Operating Margin of 31.92%. This is in the better half of the industry: ASME outperforms 78.43% of its industry peers.
In the last couple of years the Operating Margin of ASME has grown nicely.
The Gross Margin of ASME (51.28%) is better than 68.63% of its industry peers.
ASME's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.92% | ||
| PM (TTM) | 26.79% | ||
| GM | 51.28% |
OM growth 3Y-4.54%
OM growth 5Y6.79%
PM growth 3Y-6.68%
PM growth 5Y4.17%
GM growth 3Y0.44%
GM growth 5Y4.34%
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 about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ASME has been reduced compared to 5 years ago.
Compared to 1 year ago, ASME has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.20 indicates that ASME is not in any danger for bankruptcy at the moment.
ASME's Altman-Z score of 7.20 is fine compared to the rest of the industry. ASME outperforms 60.78% of its industry peers.
The Debt to FCF ratio of ASME is 0.55, which is an excellent value as it means it would take ASME, only 0.55 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.55, ASME belongs to the top of the industry, outperforming 84.31% of the companies in the same industry.
A Debt/Equity ratio of 0.21 indicates that ASME is not too dependend on debt financing.
ASME has a Debt to Equity ratio (0.21) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 7.2 |
ROIC/WACC2.42
WACC10.72%
2.3 Liquidity
A Current Ratio of 1.53 indicates that ASME should not have too much problems paying its short term obligations.
ASME has a Current ratio of 1.53. This is in the lower half of the industry: ASME underperforms 76.47% of its industry peers.
ASME has a Quick Ratio of 1.53. This is a bad value and indicates that ASME is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ASME (0.99) is worse than 74.51% of its industry peers.
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 | 1.53 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
ASME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.60%, which is quite impressive.
The Earnings Per Share has been growing by 25.62% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 2.56% in the past year.
ASME shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.05% yearly.
EPS 1Y (TTM)22.6%
EPS 3Y10.24%
EPS 5Y25.62%
EPS Q2Q%92.93%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y14.94%
Revenue growth 5Y19.05%
Sales Q2Q%46.34%
3.2 Future
The Earnings Per Share is expected to grow by 18.80% 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 11.29% on average per year.
EPS Next Y24.43%
EPS Next 2Y21.11%
EPS Next 3Y20.74%
EPS Next 5Y18.8%
Revenue Next Year15.08%
Revenue Next 2Y12.23%
Revenue Next 3Y12.65%
Revenue Next 5Y11.29%
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.
Although the future Revenue 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 30.67 indicates a quite expensive valuation of ASME.
ASME's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.30. ASME is around the same levels.
Based on the Price/Forward Earnings ratio of 24.05, the valuation of ASME can be described as rather expensive.
ASME's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ASME to the average of the S&P500 Index (21.76), we can say ASME is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.67 | ||
| Fwd PE | 24.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ASME indicates a slightly more expensive valuation: ASME is more expensive than 66.67% of the companies listed in the same industry.
ASME's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ASME is cheaper than 72.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.43 | ||
| EV/EBITDA | 26.11 |
4.3 Compensation for Growth
The 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.
ASME's earnings are expected to grow with 20.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)1.2
EPS Next 2Y21.11%
EPS Next 3Y20.74%
5. Dividend
5.1 Amount
ASME has a yearly dividend return of 0.95%, which is pretty low.
Compared to an average industry Dividend Yield of 1.12, ASME pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, ASME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
The dividend of ASME is nicely growing with an annual growth rate of 14.61%!
Dividend Growth(5Y)14.61%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ASME pays out 32.40% of its income as dividend. This is a sustainable payout ratio.
ASME's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.4%
EPS Next 2Y21.11%
EPS Next 3Y20.74%
FRA:ASME (7/8/2025, 7:00:00 PM)
678.7
+7.1 (+1.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners50.81%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap267.29B
Analysts78.1
Price Target786.77 (15.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend6.24
Dividend Growth(5Y)14.61%
DP32.4%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.52%
Min EPS beat(2)-0.46%
Max EPS beat(2)7.51%
EPS beat(4)3
Avg EPS beat(4)6.1%
Min EPS beat(4)-0.46%
Max EPS beat(4)10.42%
EPS beat(8)7
Avg EPS beat(8)7.03%
EPS beat(12)11
Avg EPS beat(12)7.51%
EPS beat(16)14
Avg EPS beat(16)8.25%
Revenue beat(2)2
Avg Revenue beat(2)1.27%
Min Revenue beat(2)0.08%
Max Revenue beat(2)2.45%
Revenue beat(4)3
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-3.8%
Max Revenue beat(4)2.45%
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)-0.68%
PT rev (3m)-9.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.67 | ||
| Fwd PE | 24.05 | ||
| P/S | 9.46 | ||
| P/FCF | 29.43 | ||
| P/OCF | 23.94 | ||
| P/B | 14.47 | ||
| P/tB | 20.15 | ||
| EV/EBITDA | 26.11 |
EPS(TTM)22.13
EY3.26%
EPS(NY)28.22
Fwd EY4.16%
FCF(TTM)23.06
FCFY3.4%
OCF(TTM)28.35
OCFY4.18%
SpS71.76
BVpS46.92
TBVpS33.69
PEG (NY)1.26
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.58% | ||
| ROE | 40.98% | ||
| ROCE | 31.62% | ||
| ROIC | 25.98% | ||
| ROICexc | 46.94% | ||
| ROICexgc | 70.04% | ||
| OM | 31.92% | ||
| PM (TTM) | 26.79% | ||
| GM | 51.28% | ||
| FCFM | 32.14% |
ROA(3y)16.96%
ROA(5y)16.56%
ROE(3y)49.24%
ROE(5y)44.73%
ROIC(3y)27.9%
ROIC(5y)25.53%
ROICexc(3y)43.46%
ROICexc(5y)39.92%
ROICexgc(3y)81.29%
ROICexgc(5y)81.27%
ROCE(3y)33.95%
ROCE(5y)31.07%
ROICexcg growth 3Y-15.63%
ROICexcg growth 5Y18.79%
ROICexc growth 3Y0.79%
ROICexc growth 5Y25.18%
OM growth 3Y-4.54%
OM growth 5Y6.79%
PM growth 3Y-6.68%
PM growth 5Y4.17%
GM growth 3Y0.44%
GM growth 5Y4.34%
F-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.55 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 226.77% | ||
| Cap/Sales | 7.37% | ||
| Interest Coverage | 56.39 | ||
| Cash Conversion | 112.32% | ||
| Profit Quality | 119.96% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 7.2 |
F-Score7
WACC10.72%
ROIC/WACC2.42
Cap/Depr(3y)259.75%
Cap/Depr(5y)228.84%
Cap/Sales(3y)9.74%
Cap/Sales(5y)9.91%
Profit Quality(3y)91.57%
Profit Quality(5y)107.38%
High Growth Momentum
Growth
EPS 1Y (TTM)22.6%
EPS 3Y10.24%
EPS 5Y25.62%
EPS Q2Q%92.93%
EPS Next Y24.43%
EPS Next 2Y21.11%
EPS Next 3Y20.74%
EPS Next 5Y18.8%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y14.94%
Revenue growth 5Y19.05%
Sales Q2Q%46.34%
Revenue Next Year15.08%
Revenue Next 2Y12.23%
Revenue Next 3Y12.65%
Revenue Next 5Y11.29%
EBIT growth 1Y-5.14%
EBIT growth 3Y9.72%
EBIT growth 5Y27.13%
EBIT Next Year33.08%
EBIT Next 3Y21.81%
EBIT Next 5Y18.34%
FCF growth 1Y167.57%
FCF growth 3Y-3.05%
FCF growth 5Y29.82%
OCF growth 1Y70.84%
OCF growth 3Y-1.24%
OCF growth 5Y25.03%