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 gets an excellent profitability rating and is at the same time showing great financial health properties. 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
- ASML had positive earnings in the past year.
- In the past year ASML had a positive cash flow from operations.
- In the past 5 years ASML has always been profitable.
- In the past 5 years ASML always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of ASML (20.71%) is better than 88.24% of its industry peers.
- Looking at the Return On Equity, with a value of 47.39%, ASML belongs to the top of the industry, outperforming 88.24% 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 89.71% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years 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
- Looking at the Profit Margin, with a value of 31.73%, ASML belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
- In the last couple of years the Profit Margin of ASML has grown nicely.
- ASML's Operating Margin of 37.74% is amongst the best of the industry. ASML outperforms 88.24% of its industry peers.
- In the last couple of years the Operating Margin of ASML has grown nicely.
- ASML has a better Gross Margin (51.93%) than 64.71% 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
- ASML has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for ASML remains at a similar level compared to 1 year ago.
- ASML has less shares outstanding than it did 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 better Altman-Z score (12.14) than 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.
- Looking at the Debt to FCF ratio, with a value of 0.51, ASML belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
- A Debt/Equity ratio of 0.17 indicates that ASML is not too dependend on debt financing.
- ASML has a Debt to Equity ratio of 0.17. This is in the better half 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.
- The Current ratio of ASML (1.41) is worse than 91.18% of its industry peers.
- A Quick Ratio of 0.79 indicates that ASML may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.79, ASML is doing worse than 89.71% of the companies in the same industry.
- ASML 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 | 1.41 | ||
| 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.
- Looking at the last year, ASML shows a small growth in Revenue. The Revenue has grown by 2.56% in the last year.
- 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
- The Earnings Per Share is expected to grow by 19.44% on average over the next years. This is quite good.
- Based on estimates for the next years, ASML will show a quite strong growth in Revenue. The Revenue will grow by 12.10% on average per year.
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
- 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
- With a Price/Earnings ratio of 48.65, ASML can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, ASML is valued a bit more expensive than the industry average as 61.76% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, ASML is valued quite expensively.
- The Price/Forward Earnings ratio is 44.37, which means the current valuation is very expensive for ASML.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ASML indicates a slightly more expensive valuation: ASML is more expensive than 77.94% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of ASML to the average of the S&P500 Index (24.26), we can say ASML is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.65 | ||
| Fwd PE | 44.37 |
4.2 Price Multiples
- 63.24% of the companies in the same industry are cheaper than ASML, based on the Enterprise Value to EBITDA ratio.
- 63.24% of the companies in the same industry are more expensive than ASML, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.17 | ||
| EV/EBITDA | 33.95 |
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.
- ASML's earnings are expected to grow with 19.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.56
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.
- With a Dividend Yield of 0.39, ASML pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
5.2 History
- The dividend of ASML 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
- 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.