ASML HOLDING NV (ASME.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ASME - NL0010273215 - Common Stock
1178.2 EUR
+1.8 (+0.15%)
We assign a fundamental rating of 7 out of 10 to ASME. ASME was compared to 68 industry peers in the Semiconductors & Semiconductor Equipment industry. ASME gets an excellent profitability rating and is at the same time showing great financial health properties. ASME is valued quite expensive, but it does show an excellent growth. With these ratings, ASME could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year ASME was profitable.
- ASME had a positive operating cash flow in the past year.
- Each year in the past 5 years ASME has been profitable.
- ASME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ASME has a better Return On Assets (20.71%) than 89.71% of its industry peers.
- ASME's Return On Equity of 47.39% is amongst the best of the industry. ASME outperforms 89.71% of its industry peers.
- The Return On Invested Capital of ASME (32.62%) is better than 91.18% of its industry peers.
- ASME had an Average Return On Invested Capital over the past 3 years of 27.67%. This is significantly above the industry average of 14.62%.
- The last Return On Invested Capital (32.62%) for ASME is above the 3 year average (27.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.71% | ||
| ROE | 47.39% | ||
| ROIC | 32.62% |
ROA(3y)17.06%
ROA(5y)16.62%
ROE(3y)48.22%
ROE(5y)44.12%
ROIC(3y)27.67%
ROIC(5y)25.41%
1.3 Margins
- The Profit Margin of ASME (31.73%) is better than 86.76% of its industry peers.
- In the last couple of years the Profit Margin of ASME has grown nicely.
- ASME has a better Operating Margin (37.74%) than 89.71% of its industry peers.
- ASME's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 51.93%, ASME is doing good in the industry, outperforming 66.18% of the companies in the same industry.
- ASME's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.74% | ||
| PM (TTM) | 31.73% | ||
| GM | 51.93% |
OM growth 3Y-1.42%
OM growth 5Y8.87%
PM growth 3Y-3.59%
PM growth 5Y6.23%
GM growth 3Y-0.04%
GM growth 5Y4.04%
2. Health
2.1 Basic Checks
- ASME has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- ASME has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ASME has less shares outstanding
- The debt/assets ratio for ASME has been reduced compared to a year ago.
2.2 Solvency
- ASME has an Altman-Z score of 12.15. This indicates that ASME is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 12.15, ASME is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
- ASME has a debt to FCF ratio of 0.51. This is a very positive value and a sign of high solvency as it would only need 0.51 years to pay back of all of its debts.
- ASME's Debt to FCF ratio of 0.51 is amongst the best of the industry. ASME outperforms 83.82% of its industry peers.
- ASME has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.17, ASME is in the better half of the industry, outperforming 63.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.51 | ||
| Altman-Z | 12.15 |
ROIC/WACC3.18
WACC10.26%
2.3 Liquidity
- ASME has a Current Ratio of 1.41. This is a normal value and indicates that ASME is financially healthy and should not expect problems in meeting its short term obligations.
- ASME has a Current ratio of 1.41. This is amonst the worse of the industry: ASME underperforms 89.71% of its industry peers.
- ASME has a Quick Ratio of 1.41. This is a bad value and indicates that ASME is not financially healthy enough and could expect problems in meeting its short term obligations.
- ASME has a Quick ratio of 0.79. This is amonst the worse of the industry: ASME underperforms 88.24% 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 | 1.41 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 37.61% over the past year.
- The Earnings Per Share has been growing by 25.62% on average over the past years. This is a very strong growth
- ASME shows a small growth in Revenue. In the last year, the Revenue has grown by 2.56%.
- Measured over the past years, ASME shows a quite strong growth in Revenue. The Revenue has been growing by 19.05% on average per year.
EPS 1Y (TTM)37.61%
EPS 3Y10.24%
EPS 5Y25.62%
EPS Q2Q%3.79%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y14.94%
Revenue growth 5Y19.05%
Sales Q2Q%0.65%
3.2 Future
- Based on estimates for the next years, ASME will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.44% on average per year.
- The Revenue is expected to grow by 12.10% on average over the next years. This is quite good.
EPS Next Y31.8%
EPS Next 2Y19.18%
EPS Next 3Y21.41%
EPS Next 5Y19.44%
Revenue Next Year16.7%
Revenue Next 2Y10.56%
Revenue Next 3Y12.02%
Revenue Next 5Y12.1%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 48.65 indicates a quite expensive valuation of ASME.
- ASME's Price/Earnings ratio is a bit more expensive when compared to the industry. ASME is more expensive than 60.29% of the companies in the same industry.
- ASME is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 43.11, ASME can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, ASME is valued a bit more expensive than the industry average as 76.47% of the companies are valued more cheaply.
- ASME is valuated expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.65 | ||
| Fwd PE | 43.11 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ASME is valued a bit more expensive than 61.76% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ASME is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.17 | ||
| EV/EBITDA | 34 |
4.3 Compensation for Growth
- ASME's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ASME has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as ASME's earnings are expected to grow with 21.41% in the coming years.
PEG (NY)1.53
PEG (5Y)1.9
EPS Next 2Y19.18%
EPS Next 3Y21.41%
5. Dividend
5.1 Amount
- ASME has a yearly dividend return of 0.56%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.70, ASME has a dividend in line with its industry peers.
- With a Dividend Yield of 0.56, ASME pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
5.2 History
- On average, the dividend of ASME grows each year by 14.61%, which is quite nice.
Dividend Growth(5Y)14.61%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- ASME pays out 24.55% 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.
DP24.55%
EPS Next 2Y19.18%
EPS Next 3Y21.41%
ASML HOLDING NV / ASME.DE FAQ
What is the fundamental rating for ASME stock?
ChartMill assigns a fundamental rating of 7 / 10 to ASME.DE.
Can you provide the valuation status for ASML HOLDING NV?
ChartMill assigns a valuation rating of 2 / 10 to ASML HOLDING NV (ASME.DE). This can be considered as Overvalued.
Can you provide the profitability details for ASML HOLDING NV?
ASML HOLDING NV (ASME.DE) has a profitability rating of 9 / 10.
What is the valuation of ASML HOLDING NV based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ASML HOLDING NV (ASME.DE) is 48.65 and the Price/Book (PB) ratio is 21.24.
Is the dividend of ASML HOLDING NV sustainable?
The dividend rating of ASML HOLDING NV (ASME.DE) is 4 / 10 and the dividend payout ratio is 24.55%.