ASML HOLDING NV (ASML.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:ASML - NL0010273215 - Common Stock
1176.4 EUR
+21.6 (+1.87%)
We assign a fundamental rating of 7 out of 10 to ASML. ASML was compared to 68 industry peers in the Semiconductors & Semiconductor Equipment industry. ASML scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ASML shows excellent growth, but is valued quite expensive already. With these ratings, ASML could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year ASML was profitable.
- ASML had a positive operating cash flow in the past year.
- In the past 5 years ASML has always been profitable.
- Each year in the past 5 years ASML had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 20.71%, ASML belongs to the best of the industry, outperforming 91.18% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 47.39%, ASML belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 32.62%, ASML belongs to the best of the industry, outperforming 92.65% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ASML is significantly above the industry average of 14.62%.
- The 3 year average ROIC (27.67%) for ASML is below the current ROIC(32.62%), indicating increased profibility in the last year.
| 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
- With an excellent Profit Margin value of 31.73%, ASML belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
- ASML's Profit Margin has improved in the last couple of years.
- ASML's Operating Margin of 37.74% is amongst the best of the industry. ASML outperforms 91.18% of its industry peers.
- ASML's Operating Margin has improved in the last couple of years.
- ASML has a Gross Margin of 51.93%. This is in the better half of the industry: ASML outperforms 67.65% of its industry peers.
- In the last couple of years the Gross Margin of ASML has grown nicely.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ASML is creating value.
- The number of shares outstanding for ASML remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, ASML has less shares outstanding
- The debt/assets ratio for ASML has been reduced compared to a year ago.
2.2 Solvency
- ASML has an Altman-Z score of 11.96. This indicates that ASML is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 11.96, ASML is doing good in the industry, outperforming 77.94% of the companies in the same industry.
- ASML 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.
- ASML's Debt to FCF ratio of 0.51 is amongst the best of the industry. ASML outperforms 85.29% of its industry peers.
- A Debt/Equity ratio of 0.17 indicates that ASML is not too dependend on debt financing.
- The Debt to Equity ratio of ASML (0.17) is better than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.51 | ||
| Altman-Z | 11.96 |
ROIC/WACC3.18
WACC10.26%
2.3 Liquidity
- A Current Ratio of 1.41 indicates that ASML should not have too much problems paying its short term obligations.
- The Current ratio of ASML (1.41) is worse than 88.24% of its industry peers.
- ASML has a Quick Ratio of 1.41. This is a bad value and indicates that ASML is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.79, ASML is not doing good in the industry: 86.76% of the companies in the same industry are doing better.
- The current and quick ratio evaluation for ASML 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.
- Measured over the past years, ASML shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.62% on average per year.
- The Revenue has been growing slightly by 2.56% in the past year.
- The Revenue has been growing by 19.05% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to grow by 19.44% on average over the next years. This is quite good.
- ASML is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.10% yearly.
EPS Next Y31.25%
EPS Next 2Y17.48%
EPS Next 3Y19.72%
EPS Next 5Y19.44%
Revenue Next Year16.7%
Revenue Next 2Y10.56%
Revenue Next 3Y12.02%
Revenue Next 5Y12.1%
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.
- The estimated forward Revenue 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
- With a Price/Earnings ratio of 48.57, ASML can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as ASML.
- ASML is valuated expensively when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- ASML is valuated quite expensively with a Price/Forward Earnings ratio of 44.30.
- ASML's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ASML is more expensive than 69.12% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. ASML is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.57 | ||
| Fwd PE | 44.3 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ASML is valued a bit more expensive than 60.29% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ASML is valued a bit cheaper than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.1 | ||
| EV/EBITDA | 33.32 |
4.3 Compensation for Growth
- ASML's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of ASML may justify a higher PE ratio.
- A more expensive valuation may be justified as ASML's earnings are expected to grow with 19.72% in the coming years.
PEG (NY)1.55
PEG (5Y)1.9
EPS Next 2Y17.48%
EPS Next 3Y19.72%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.39%, ASML is not a good candidate for dividend investing.
- ASML's Dividend Yield is comparable with the industry average which is at 0.72.
- Compared to an average S&P500 Dividend Yield of 1.83, ASML's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
5.2 History
- On average, the dividend of ASML 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
- ASML pays out 24.55% of its income as dividend. This is a sustainable payout ratio.
- The dividend of ASML is growing, but earnings are growing more, so the dividend growth is sustainable.
DP24.55%
EPS Next 2Y17.48%
EPS Next 3Y19.72%
ASML HOLDING NV / ASML.AS FAQ
Can you provide the ChartMill fundamental rating for ASML HOLDING NV?
ChartMill assigns a fundamental rating of 7 / 10 to ASML.AS.
Can you provide the valuation status for ASML HOLDING NV?
ChartMill assigns a valuation rating of 3 / 10 to ASML HOLDING NV (ASML.AS). This can be considered as Overvalued.
How profitable is ASML HOLDING NV (ASML.AS) stock?
ASML HOLDING NV (ASML.AS) 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 (ASML.AS) is 48.57 and the Price/Book (PB) ratio is 21.21.
What is the earnings growth outlook for ASML HOLDING NV?
The Earnings per Share (EPS) of ASML HOLDING NV (ASML.AS) is expected to grow by 31.25% in the next year.