ASML HOLDING NV (ASML.AS)
NL0010273215 - Common Stock
ASML gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 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. While showing a medium growth rate, ASML is valued expensive at the moment. With these ratings, ASML could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
ASML had positive earnings in the past year.
ASML had a positive operating cash flow in the past year.
Each year in the past 5 years ASML has 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 (16.75%) is better than 72.55% 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 88.24% 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 80.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ASML is significantly above the industry average of 17.28%.
| 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
ASML has a better Profit Margin (29.16%) than 88.24% of its industry peers.
In the last couple of years the Profit Margin of ASML has grown nicely.
The Operating Margin of ASML (34.01%) is better than 84.31% of its industry peers.
ASML's Operating Margin has improved in the last couple of years.
The Gross Margin of ASML (50.63%) is better than 66.67% of its industry peers.
ASML'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
ASML has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, ASML has less shares outstanding
ASML has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ASML has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.40 indicates that ASML is not in any danger for bankruptcy at the moment.
ASML's Altman-Z score of 8.40 is fine compared to the rest of the industry. ASML outperforms 76.47% 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.
Looking at the Debt to FCF ratio, with a value of 1.54, ASML is in the better half of the industry, outperforming 62.75% of the companies in the same industry.
ASML has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
ASML has a Debt to Equity ratio (0.26) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.54 | ||
| Altman-Z | 8.4 |
ROIC/WACC2.17
WACC11.97%
2.3 Liquidity
ASML has a Current Ratio of 1.50. 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 Current ratio of 1.50. This is amonst the worse of the industry: ASML underperforms 84.31% 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.
Looking at the Quick ratio, with a value of 0.82, ASML is doing worse than 90.20% 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 | 1.5 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for ASML have decreased by -8.74% in the last year.
The Earnings Per Share has been growing by 26.71% on average over the past years. This is a very strong growth
The Revenue has decreased by -1.60% in the past year.
ASML shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.29% yearly.
EPS 1Y (TTM)-8.74%
EPS 3Y32.87%
EPS 5Y26.71%
EPS Q2Q%-18.66%
Revenue 1Y (TTM)-1.6%
Revenue growth 3Y25.39%
Revenue growth 5Y20.29%
Sales Q2Q%-9.55%
3.2 Future
ASML is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.08% yearly.
ASML is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.02% yearly.
EPS Next Y-3.58%
EPS Next 2Y24.52%
EPS Next 3Y20.98%
EPS Next 5Y20.08%
Revenue Next Year1.76%
Revenue Next 2Y15.94%
Revenue Next 3Y13.74%
Revenue Next 5Y14.02%
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 39.75, ASML can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ASML indicates a slightly more expensive valuation: ASML is more expensive than 64.71% of the companies listed in the same industry.
ASML is valuated rather expensively when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.08 indicates a rather expensive valuation of ASML.
ASML's Price/Forward Earnings is on the same level as the industry average.
ASML's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.75 | ||
| Fwd PE | 22.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASML is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as ASML.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 89.54 | ||
| EV/EBITDA | 28.92 |
4.3 Compensation for Growth
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 20.98% in the coming years.
PEG (NY)N/A
PEG (5Y)1.49
EPS Next 2Y24.52%
EPS Next 3Y20.98%
5. Dividend
5.1 Amount
ASML has a yearly dividend return of 0.86%, which is pretty low.
The stock price of ASML dropped by -28.98% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
ASML's Dividend Yield is comparable with the industry average which is at 1.36.
With a Dividend Yield of 0.86, ASML pays less dividend than the S&P500 average, which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
The dividend of ASML is nicely growing with an annual growth rate of 33.46%!
Dividend Growth(5Y)33.46%
Div Incr Years0
Div Non Decr Years0
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 2Y24.52%
EPS Next 3Y20.98%
ASML HOLDING NV
AMS:ASML (9/6/2024, 7:00:00 PM)
681
-39 (-5.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap267.92B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.75 | ||
| Fwd PE | 22.08 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.75% | ||
| ROE | 41.56% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 34.01% | ||
| PM (TTM) | 29.16% | ||
| GM | 50.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-8.74%
EPS 3Y32.87%
EPS 5Y
EPS Q2Q%
EPS Next Y-3.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.6%
Revenue growth 3Y25.39%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y