ASML HOLDING NV-NY REG SHS (ASML) Stock Fundamental Analysis
NASDAQ:ASML - Nasdaq - USN070592100 - Currency: USD
We assign a fundamental rating of 7 out of 10 to ASML. ASML was compared to 109 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 is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! 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.
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
With an excellent Return On Assets value of 15.58%, ASML belongs to the best of the industry, outperforming 88.99% of the companies in the same industry.
With an excellent Return On Equity value of 40.98%, ASML belongs to the best of the industry, outperforming 93.58% of the companies in the same industry.
The Return On Invested Capital of ASML (25.98%) is better than 95.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ASML is significantly above the industry average of 11.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.58% | ||
| ROE | 40.98% | ||
| ROIC | 25.98% |
ROA(3y)16.96%
ROA(5y)16.56%
ROE(3y)49.24%
ROE(5y)44.73%
ROIC(3y)27.9%
ROIC(5y)25.53%
1.3 Margins
Looking at the Profit Margin, with a value of 26.79%, ASML belongs to the top of the industry, outperforming 88.99% of the companies in the same industry.
ASML's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 31.92%, ASML belongs to the top of the industry, outperforming 91.74% of the companies in the same industry.
In the last couple of years the Operating Margin of ASML has grown nicely.
ASML has a Gross Margin of 51.28%. This is in the better half of the industry: ASML outperforms 67.89% of its industry peers.
ASML's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.92% | ||
| PM (TTM) | 26.79% | ||
| GM | 51.28% |
OM growth 3Y-4.54%
OM growth 5Y6.79%
PM growth 3Y-6.68%
PM growth 5Y4.17%
GM growth 3Y0.44%
GM growth 5Y4.34%
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.
The number of shares outstanding for ASML has been reduced compared to 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 6.30 indicates that ASML is not in any danger for bankruptcy at the moment.
The Altman-Z score of ASML (6.30) is better than 70.64% of its industry peers.
ASML has a debt to FCF ratio of 0.55. This is a very positive value and a sign of high solvency as it would only need 0.55 years to pay back of all of its debts.
ASML's Debt to FCF ratio of 0.55 is amongst the best of the industry. ASML outperforms 82.57% of its industry peers.
ASML has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ASML (0.21) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 6.3 |
ROIC/WACC2.54
WACC10.22%
2.3 Liquidity
ASML has a Current Ratio of 1.53. This is a normal value and indicates that ASML is financially healthy and should not expect problems in meeting its short term obligations.
ASML's Current ratio of 1.53 is on the low side compared to the rest of the industry. ASML is outperformed by 80.73% of its industry peers.
ASML has a Quick Ratio of 1.53. 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 Quick ratio of 0.99. This is amonst the worse of the industry: ASML underperforms 84.40% 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 | 1.53 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.14% 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.
Measured over the past years, ASML shows a quite strong growth in Revenue. The Revenue has been growing by 19.05% on average per year.
EPS 1Y (TTM)20.14%
EPS 3Y10.24%
EPS 5Y25.62%
EPS Q2Q%78.61%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y14.94%
Revenue growth 5Y19.05%
Sales Q2Q%35.52%
3.2 Future
ASML is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.78% yearly.
The Revenue is expected to grow by 11.34% on average over the next years. This is quite good.
EPS Next Y26.8%
EPS Next 2Y23.83%
EPS Next 3Y21.78%
EPS Next 5Y17.78%
Revenue Next Year16.37%
Revenue Next 2Y14.5%
Revenue Next 3Y13.2%
Revenue Next 5Y11.34%
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.
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
ASML is valuated quite expensively with a Price/Earnings ratio of 25.99.
Based on the Price/Earnings ratio, ASML is valued a bit cheaper than 61.47% of the companies in the same industry.
ASML is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
ASML is valuated rather expensively with a Price/Forward Earnings ratio of 19.10.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ASML indicates a somewhat cheap valuation: ASML is cheaper than 66.97% of the companies listed in the same industry.
ASML is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.99 | ||
| Fwd PE | 19.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ASML is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ASML is valued a bit cheaper than 76.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.43 | ||
| EV/EBITDA | 21.54 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of ASML may justify a higher PE ratio.
ASML's earnings are expected to grow with 21.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)1.01
EPS Next 2Y23.83%
EPS Next 3Y21.78%
5. Dividend
5.1 Amount
ASML has a Yearly Dividend Yield of 1.11%.
Compared to an average industry Dividend Yield of 3.10, ASML pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.57, ASML's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
The dividend of ASML is nicely growing with an annual growth rate of 14.61%!
ASML has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of ASML decreased recently.
Dividend Growth(5Y)14.61%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
32.40% of the earnings are spent on dividend by ASML. This is a low number and sustainable payout ratio.
ASML's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.4%
EPS Next 2Y23.83%
EPS Next 3Y21.78%
640.16
+5.23 (+0.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners52.38%
Inst Owner Change0.01%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap252.11B
Analysts80
Price Target951.86 (48.69%)
Short Float %0.38%
Short Ratio0.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend7.08
Dividend Growth(5Y)14.61%
DP32.4%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.52%
Min EPS beat(2)-0.46%
Max EPS beat(2)7.51%
EPS beat(4)3
Avg EPS beat(4)6.1%
Min EPS beat(4)-0.46%
Max EPS beat(4)10.42%
EPS beat(8)7
Avg EPS beat(8)7.03%
EPS beat(12)11
Avg EPS beat(12)7.51%
EPS beat(16)14
Avg EPS beat(16)8.25%
Revenue beat(2)2
Avg Revenue beat(2)1.27%
Min Revenue beat(2)0.08%
Max Revenue beat(2)2.45%
Revenue beat(4)3
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-3.8%
Max Revenue beat(4)2.45%
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)4.88%
PT rev (3m)7.05%
EPS NQ rev (1m)3.13%
EPS NQ rev (3m)7.51%
EPS NY rev (1m)0.66%
EPS NY rev (3m)-1.41%
Revenue NQ rev (1m)1.63%
Revenue NQ rev (3m)4.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.99 | ||
| Fwd PE | 19.1 | ||
| P/S | 7.85 | ||
| P/FCF | 24.43 | ||
| P/OCF | 19.88 | ||
| P/B | 12.01 | ||
| P/tB | 16.73 | ||
| EV/EBITDA | 21.54 |
EPS(TTM)24.63
EY3.85%
EPS(NY)33.52
Fwd EY5.24%
FCF(TTM)26.2
FCFY4.09%
OCF(TTM)32.21
OCFY5.03%
SpS81.52
BVpS53.3
TBVpS38.27
PEG (NY)0.97
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.58% | ||
| ROE | 40.98% | ||
| ROCE | 31.62% | ||
| ROIC | 25.98% | ||
| ROICexc | 46.94% | ||
| ROICexgc | 70.04% | ||
| OM | 31.92% | ||
| PM (TTM) | 26.79% | ||
| GM | 51.28% | ||
| FCFM | 32.14% |
ROA(3y)16.96%
ROA(5y)16.56%
ROE(3y)49.24%
ROE(5y)44.73%
ROIC(3y)27.9%
ROIC(5y)25.53%
ROICexc(3y)43.46%
ROICexc(5y)39.92%
ROICexgc(3y)81.29%
ROICexgc(5y)81.27%
ROCE(3y)33.95%
ROCE(5y)31.07%
ROICexcg growth 3Y-15.63%
ROICexcg growth 5Y18.79%
ROICexc growth 3Y0.79%
ROICexc growth 5Y25.18%
OM growth 3Y-4.54%
OM growth 5Y6.79%
PM growth 3Y-6.68%
PM growth 5Y4.17%
GM growth 3Y0.44%
GM growth 5Y4.34%
F-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.55 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 226.77% | ||
| Cap/Sales | 7.37% | ||
| Interest Coverage | 56.39 | ||
| Cash Conversion | 112.32% | ||
| Profit Quality | 119.96% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 6.3 |
F-Score7
WACC10.22%
ROIC/WACC2.54
Cap/Depr(3y)259.75%
Cap/Depr(5y)228.84%
Cap/Sales(3y)9.74%
Cap/Sales(5y)9.91%
Profit Quality(3y)91.57%
Profit Quality(5y)107.38%
High Growth Momentum
Growth
EPS 1Y (TTM)20.14%
EPS 3Y10.24%
EPS 5Y25.62%
EPS Q2Q%78.61%
EPS Next Y26.8%
EPS Next 2Y23.83%
EPS Next 3Y21.78%
EPS Next 5Y17.78%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y14.94%
Revenue growth 5Y19.05%
Sales Q2Q%35.52%
Revenue Next Year16.37%
Revenue Next 2Y14.5%
Revenue Next 3Y13.2%
Revenue Next 5Y11.34%
EBIT growth 1Y-5.14%
EBIT growth 3Y9.72%
EBIT growth 5Y27.13%
EBIT Next Year35.67%
EBIT Next 3Y23.1%
EBIT Next 5Y19.23%
FCF growth 1Y167.57%
FCF growth 3Y-3.05%
FCF growth 5Y29.82%
OCF growth 1Y70.84%
OCF growth 3Y-1.24%
OCF growth 5Y25.03%