ASML HOLDING NV (ASME.DE) Stock Fundamental Analysis
FRA:ASME - Deutsche Boerse Ag - NL0010273215 - Common Stock - Currency: EUR
Overall ASME gets a fundamental rating of 5 out of 10. We evaluated ASME against 58 industry peers in the Semiconductors & Semiconductor Equipment industry. While ASME belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ASME is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ASME had positive earnings in the past year.
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
ASME has a Return On Assets of 16.75%. This is in the better half of the industry: ASME outperforms 75.86% of its industry peers.
ASME has a better Return On Equity (41.56%) than 89.66% of its industry peers.
With an excellent Return On Invested Capital value of 25.97%, ASME belongs to the best of the industry, outperforming 87.93% of the companies in the same industry.
ASME had an Average Return On Invested Capital over the past 3 years of 29.48%. This is significantly above the industry average of 16.14%.
| 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
Looking at the Profit Margin, with a value of 29.16%, ASME belongs to the top of the industry, outperforming 84.48% of the companies in the same industry.
In the last couple of years the Profit Margin of ASME has grown nicely.
ASME has a better Operating Margin (34.01%) than 89.66% of its industry peers.
In the last couple of years the Operating Margin of ASME has grown nicely.
ASME has a Gross Margin of 50.63%. This is in the better half of the industry: ASME outperforms 72.41% of its industry peers.
ASME's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
ASME has an Altman-Z score of 7.93. This indicates that ASME is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 7.93, ASME is doing good in the industry, outperforming 75.86% of the companies in the same industry.
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.
The Debt to FCF ratio of ASME (1.54) is better than 75.86% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that ASME is not too dependend on debt financing.
ASME has a Debt to Equity ratio (0.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.54 | ||
| Altman-Z | 7.93 |
ROIC/WACC2.54
WACC10.24%
2.3 Liquidity
A Current Ratio of 1.50 indicates that ASME should not have too much problems paying its short term obligations.
ASME has a Current ratio of 1.50. This is in the lower half of the industry: ASME underperforms 77.59% of its industry peers.
ASME has a Quick Ratio of 1.50. 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 worse Quick ratio (0.82) than 81.03% of its industry peers.
ASME 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.
| 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 -3.27% in the last year.
The Earnings Per Share has been growing by 25.62% on average over the past years. This is a very strong growth
EPS 1Y (TTM)-3.27%
EPS 3Y10.24%
EPS 5Y25.62%
EPS Q2Q%31.54%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%27.99%
3.2 Future
ASME is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.74% yearly.
ASME is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.60% yearly.
EPS Next Y25.97%
EPS Next 2Y23.37%
EPS Next 3Y22.32%
EPS Next 5Y18.74%
Revenue Next Year16.37%
Revenue Next 2Y14.5%
Revenue Next 3Y13.2%
Revenue Next 5Y12.6%
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.
4. Valuation
4.1 Price/Earnings Ratio
ASME is valuated quite expensively with a Price/Earnings ratio of 34.62.
Based on the Price/Earnings ratio, ASME is valued a bit more expensive than 70.69% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. ASME is around the same levels.
A Price/Forward Earnings ratio of 27.48 indicates a quite expensive valuation of ASME.
Based on the Price/Forward Earnings ratio, ASME is valued a bit more expensive than the industry average as 70.69% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of ASME to the average of the S&P500 Index (22.10), we can say ASME is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.62 | ||
| Fwd PE | 27.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASME is valued a bit more expensive than the industry average as 70.69% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, ASME is valued a bit more expensive than 63.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 87.67 | ||
| EV/EBITDA | 26.77 |
4.3 Compensation for Growth
The 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.
ASME's earnings are expected to grow with 22.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.33
PEG (5Y)1.35
EPS Next 2Y23.37%
EPS Next 3Y22.32%
5. Dividend
5.1 Amount
ASME has a yearly dividend return of 0.96%, which is pretty low.
Compared to an average industry Dividend Yield of 1.50, ASME pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.96, ASME pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
The dividend of ASME is nicely growing with an annual growth rate of 33.46%!
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 2Y23.37%
EPS Next 3Y22.32%
FRA:ASME (3/7/2025, 7:00:00 PM)
666.1
-4.1 (-0.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners52.38%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap262.33B
Analysts80.47
Price Target868.02 (30.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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)0.44%
PT rev (3m)0.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.62 | ||
| Fwd PE | 27.48 | ||
| P/S | 10.31 | ||
| P/FCF | 87.67 | ||
| P/OCF | 42.83 | ||
| P/B | 14.69 | ||
| P/tB | 29.42 | ||
| EV/EBITDA | 26.77 |
EPS(TTM)19.24
EY2.89%
EPS(NY)24.24
Fwd EY3.64%
FCF(TTM)7.6
FCFY1.14%
OCF(TTM)15.55
OCFY2.33%
SpS64.6
BVpS45.33
TBVpS22.64
PEG (NY)1.33
PEG (5Y)1.35
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 | 7.93 |
F-Score6
WACC10.24%
ROIC/WACC2.54
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)-3.27%
EPS 3Y10.24%
EPS 5Y25.62%
EPS Q2Q%31.54%
EPS Next Y25.97%
EPS Next 2Y23.37%
EPS Next 3Y22.32%
EPS Next 5Y18.74%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%27.99%
Revenue Next Year16.37%
Revenue Next 2Y14.5%
Revenue Next 3Y13.2%
Revenue Next 5Y12.6%
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%