ASML HOLDING NV (ASML.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:ASML - NL0010273215 - Common Stock
1178.2 EUR
+1.8 (+0.15%)
ASML gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 68 industry peers in the Semiconductors & Semiconductor Equipment industry. ASML has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ASML shows excellent growth, but is valued quite expensive already. This makes ASML very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year ASML was profitable.
- In the past year ASML had a positive cash flow from operations.
- Each year in the past 5 years ASML has been profitable.
- ASML had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ASML has a Return On Assets of 20.71%. This is amongst the best in the industry. ASML outperforms 88.24% of its industry peers.
- ASML has a Return On Equity of 47.39%. This is amongst the best in the industry. ASML outperforms 88.24% of its industry peers.
- The Return On Invested Capital of ASML (32.62%) is better than 89.71% of its industry peers.
- ASML 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 ASML 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
- ASML has a better Profit Margin (31.73%) than 85.29% of its industry peers.
- ASML's Profit Margin has improved in the last couple of years.
- ASML has a Operating Margin of 37.74%. This is amongst the best in the industry. ASML outperforms 88.24% of its industry peers.
- ASML's Operating Margin has improved in the last couple of years.
- The Gross Margin of ASML (51.93%) is better than 64.71% of its industry peers.
- ASML'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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ASML is creating value.
- ASML has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for ASML has been reduced compared to 5 years ago.
- Compared to 1 year ago, ASML has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 12.14 indicates that ASML is not in any danger for bankruptcy at the moment.
- ASML has a Altman-Z score of 12.14. This is in the better half of the industry: ASML outperforms 77.94% of its industry peers.
- The Debt to FCF ratio of ASML is 0.51, which is an excellent value as it means it would take ASML, only 0.51 years of fcf income to pay off all of its debts.
- ASML has a Debt to FCF ratio of 0.51. This is amongst the best in the industry. ASML outperforms 82.35% of its industry peers.
- ASML has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
- ASML's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. ASML outperforms 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.51 | ||
| Altman-Z | 12.14 |
ROIC/WACC3.18
WACC10.26%
2.3 Liquidity
- ASML has a Current Ratio of 1.41. This is a normal value and indicates that ASML is financially healthy and should not expect problems in meeting its short term obligations.
- ASML has a worse Current ratio (1.41) than 91.18% 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.
- ASML has a worse Quick ratio (0.79) than 89.71% of its industry peers.
- 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.
- ASML shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.62% yearly.
- ASML shows a small growth in Revenue. In the last year, the Revenue has grown by 2.56%.
- ASML shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.05% yearly.
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, ASML 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 Y31.25%
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
- Based on the Price/Earnings ratio of 48.65, the valuation of ASML can be described as expensive.
- 61.76% of the companies in the same industry are cheaper than ASML, based on the Price/Earnings ratio.
- ASML is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 44.37, which means the current valuation is very expensive for ASML.
- Based on the Price/Forward Earnings ratio, ASML is valued a bit more expensive than 77.94% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, ASML is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.65 | ||
| Fwd PE | 44.37 |
4.2 Price Multiples
- ASML's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ASML is more expensive than 63.24% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ASML indicates a somewhat cheap valuation: ASML is cheaper than 63.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.17 | ||
| EV/EBITDA | 33.95 |
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 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)1.56
PEG (5Y)1.9
EPS Next 2Y17.48%
EPS Next 3Y19.72%
5. Dividend
5.1 Amount
- ASML has a yearly dividend return of 0.39%, which is pretty low.
- ASML's Dividend Yield is comparable with the industry average which is at 0.72.
- Compared to an average S&P500 Dividend Yield of 1.82, 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
- 24.55% of the earnings are spent on dividend by ASML. This is a low number and 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 2 / 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 48.65 and the Price/Book (PB) ratio is 21.24.
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.