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ASML HOLDING NV (ASML.AS) Stock Fundamental Analysis

AMS:ASML - Euronext Amsterdam - NL0010273215 - Common Stock - Currency: EUR

700.85  -11.55 (-1.62%)

Fundamental Rating

6

Overall ASML gets a fundamental rating of 6 out of 10. We evaluated ASML against 56 industry peers in the Semiconductors & Semiconductor Equipment industry. ASML has an excellent profitability rating, but there are some minor concerns on its financial health. ASML is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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8

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.
Of the past 5 years ASML 4 years were profitable.
Of the past 5 years ASML 4 years had a positive operating cash flow.
ASML.AS Yearly Net Income VS EBIT VS OCF VS FCFASML.AS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

1.2 Ratios

ASML's Return On Assets of 16.75% is fine compared to the rest of the industry. ASML outperforms 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 41.56%, ASML belongs to the top of the industry, outperforming 91.07% of the companies in the same industry.
ASML has a Return On Invested Capital of 25.97%. This is amongst the best in the industry. ASML outperforms 87.50% of its industry peers.
ASML had an Average Return On Invested Capital over the past 3 years of 29.48%. This is significantly above the industry average of 16.97%.
Industry RankSector 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%
ASML.AS Yearly ROA, ROE, ROICASML.AS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40 50

1.3 Margins

ASML has a better Profit Margin (29.16%) than 91.07% of its industry peers.
ASML's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 34.01%, ASML belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Operating Margin of ASML has grown nicely.
Looking at the Gross Margin, with a value of 50.63%, ASML is in the better half of the industry, outperforming 69.64% of the companies in the same industry.
In the last couple of years the Gross Margin of ASML has grown nicely.
Industry RankSector 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%
ASML.AS Yearly Profit, Operating, Gross MarginsASML.AS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40 50

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6

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.
ASML has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
ASML.AS Yearly Shares OutstandingASML.AS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M
ASML.AS Yearly Total Debt VS Total AssetsASML.AS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B

2.2 Solvency

An Altman-Z score of 8.44 indicates that ASML is not in any danger for bankruptcy at the moment.
ASML has a Altman-Z score of 8.44. This is amongst the best in the industry. ASML outperforms 80.36% of its industry peers.
The Debt to FCF ratio of ASML is 1.54, which is an excellent value as it means it would take ASML, only 1.54 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.54, ASML is doing good in the industry, outperforming 73.21% of the companies in the same industry.
A Debt/Equity ratio of 0.26 indicates that ASML is not too dependend on debt financing.
The Debt to Equity ratio of ASML (0.26) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.26
Debt/FCF 1.54
Altman-Z 8.44
ROIC/WACC2.24
WACC11.6%
ASML.AS Yearly LT Debt VS Equity VS FCFASML.AS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

2.3 Liquidity

A Current Ratio of 1.50 indicates that ASML should not have too much problems paying its short term obligations.
ASML has a Current ratio of 1.50. This is in the lower half of the industry: ASML underperforms 76.79% of its industry peers.
ASML has a Quick Ratio of 1.50. 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 0.82, ASML is not doing good in the industry: 80.36% 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 RankSector Rank
Current Ratio 1.5
Quick Ratio 0.82
ASML.AS Yearly Current Assets VS Current LiabilitesASML.AS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B

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4

3. Growth

3.1 Past

The earnings per share for ASML have decreased by -2.38% in the last year.
Measured over the past years, ASML shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.85% on average per year.
EPS 1Y (TTM)-2.38%
EPS 3Y10.58%
EPS 5Y25.85%
EPS Q2Q%34.95%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%31.26%

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 18.52% on average per year.
The Revenue is expected to grow by 12.61% on average over the next years. This is quite good.
EPS Next Y21.83%
EPS Next 2Y22.88%
EPS Next 3Y23.82%
EPS Next 5Y18.52%
Revenue Next Year14.42%
Revenue Next 2Y13.96%
Revenue Next 3Y13.84%
Revenue Next 5Y12.61%

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.
ASML.AS Yearly Revenue VS EstimatesASML.AS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B
ASML.AS Yearly EPS VS EstimatesASML.AS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20 40 60

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 36.09, the valuation of ASML can be described as expensive.
ASML's Price/Earnings ratio is in line with the industry average.
ASML is valuated rather expensively when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 29.63, the valuation of ASML can be described as expensive.
64.29% of the companies in the same industry are cheaper than ASML, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, ASML is valued rather cheaply.
Industry RankSector Rank
PE 36.09
Fwd PE 29.63
ASML.AS Price Earnings VS Forward Price EarningsASML.AS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ASML is valued a bit more expensive than the industry average as 66.07% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ASML indicates a slightly more expensive valuation: ASML is more expensive than 60.71% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 93.6
EV/EBITDA 29.06
ASML.AS Per share dataASML.AS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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 23.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.65
PEG (5Y)1.4
EPS Next 2Y22.88%
EPS Next 3Y23.82%

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4

5. Dividend

5.1 Amount

With a yearly dividend of 0.91%, ASML is not a good candidate for dividend investing.
ASML's Dividend Yield is a higher than the industry average which is at 1.49.
With a Dividend Yield of 0.91, ASML pays less dividend than the S&P500 average, which is at 2.28.
Industry RankSector Rank
Dividend Yield 0.91%

5.2 History

On average, the dividend of ASML grows each year by 33.46%, which is quite nice.
Dividend Growth(5Y)33.46%
Div Incr Years1
Div Non Decr Years1
ASML.AS Yearly Dividends per shareASML.AS Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 2 4 6

5.3 Sustainability

ASML pays out 32.36% of its income as dividend. This is a sustainable payout ratio.
The dividend of ASML is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.36%
EPS Next 2Y22.88%
EPS Next 3Y23.82%
ASML.AS Yearly Income VS Free CF VS DividendASML.AS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B
ASML.AS Dividend Payout.ASML.AS Dividend Payout, showing the Payout Ratio.ASML.AS Dividend Payout.PayoutRetained Earnings

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ASML HOLDING NV

AMS:ASML (2/5/2025, 2:57:14 PM)

700.85

-11.55 (-1.62%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-29 2025-01-29/bmo
Earnings (Next)N/A N/A
Inst Owners52.27%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap280.05B
Analysts80
Price Target864.1 (23.29%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.91%
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)-0.04%
PT rev (3m)-0.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.28%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.04%
Valuation
Industry RankSector Rank
PE 36.09
Fwd PE 29.63
P/S 11.01
P/FCF 93.6
P/OCF 45.72
P/B 15.69
P/tB 31.4
EV/EBITDA 29.06
EPS(TTM)19.42
EY2.77%
EPS(NY)23.66
Fwd EY3.38%
FCF(TTM)7.49
FCFY1.07%
OCF(TTM)15.33
OCFY2.19%
SpS63.67
BVpS44.68
TBVpS22.32
PEG (NY)1.65
PEG (5Y)1.4
Profitability
Industry RankSector 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 RankSector 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 8.44
F-Score6
WACC11.6%
ROIC/WACC2.24
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)-2.38%
EPS 3Y10.58%
EPS 5Y25.85%
EPS Q2Q%34.95%
EPS Next Y21.83%
EPS Next 2Y22.88%
EPS Next 3Y23.82%
EPS Next 5Y18.52%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%31.26%
Revenue Next Year14.42%
Revenue Next 2Y13.96%
Revenue Next 3Y13.84%
Revenue Next 5Y12.61%
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%