ASML HOLDING NV-NY REG SHS (ASML)
USN070592100
ASML gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 108 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 valued quite expensive, but it does show an excellent growth. These ratings would make ASML suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year ASML was profitable.
ASML had a positive operating cash flow in the past year.
In the past 5 years ASML has always been profitable.
Each year in the past 5 years ASML had a positive operating cash flow.
1.2 Ratios
ASML has a better Return On Assets (16.75%) than 89.81% of its industry peers.
ASML has a Return On Equity of 41.56%. This is amongst the best in the industry. ASML outperforms 95.37% of its industry peers.
With an excellent Return On Invested Capital value of 25.97%, ASML belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
ASML had an Average Return On Invested Capital over the past 3 years of 29.48%. This is significantly above the industry average of 11.05%.
| 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
Looking at the Profit Margin, with a value of 29.16%, ASML belongs to the top of the industry, outperforming 90.74% of the companies in the same industry.
In the last couple of years the Profit Margin of ASML has grown nicely.
Looking at the Operating Margin, with a value of 34.01%, ASML belongs to the top of the industry, outperforming 93.52% of the companies in the same industry.
ASML's Operating Margin has improved in the last couple of years.
ASML has a Gross Margin of 50.63%. This is in the better half of the industry: ASML outperforms 65.74% of its industry peers.
In the last couple of years the Gross Margin of ASML has grown nicely.
| 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.
The number of shares outstanding for ASML has been reduced 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 7.68 indicates that ASML is not in any danger for bankruptcy at the moment.
The Altman-Z score of ASML (7.68) is better than 72.22% 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.
ASML's Debt to FCF ratio of 1.54 is fine compared to the rest of the industry. ASML outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that ASML is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.26, ASML is in line with its industry, outperforming 43.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.54 | ||
| Altman-Z | 7.68 |
ROIC/WACC2.14
WACC12.13%
2.3 Liquidity
A Current Ratio of 1.50 indicates that ASML should not have too much problems paying its short term obligations.
With a Current ratio value of 1.50, ASML is not doing good in the industry: 80.56% of the companies in the same industry are doing better.
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 86.11% of the companies in the same industry.
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 | 1.5 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for ASML have decreased by -8.76% 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 26.71% on average per year.
ASML shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.16%.
ASML shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.29% yearly.
EPS 1Y (TTM)-8.76%
EPS 3Y32.87%
EPS 5Y26.71%
EPS Q2Q%9.77%
Revenue 1Y (TTM)30.16%
Revenue growth 3Y25.39%
Revenue growth 5Y20.29%
Sales Q2Q%11.9%
3.2 Future
The Earnings Per Share is expected to grow by 20.08% on average over the next years. This is a very strong growth
Based on estimates for the next years, ASML will show a quite strong growth in Revenue. The Revenue will grow by 14.02% on average per year.
EPS Next Y-2.53%
EPS Next 2Y11.54%
EPS Next 3Y15.48%
EPS Next 5Y20.08%
Revenue Next Year2.37%
Revenue Next 2Y9.16%
Revenue Next 3Y10.69%
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
Based on the Price/Earnings ratio of 36.27, the valuation of ASML can be described as expensive.
ASML's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.96, ASML is valued a bit more expensive.
ASML is valuated quite expensively with a Price/Forward Earnings ratio of 25.81.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ASML indicates a somewhat cheap valuation: ASML is cheaper than 60.19% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. ASML is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.27 | ||
| Fwd PE | 25.81 |
4.2 Price Multiples
64.81% of the companies in the same industry are more expensive than ASML, based on the Enterprise Value to EBITDA ratio.
ASML's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.96 | ||
| EV/EBITDA | 25.64 |
4.3 Compensation for Growth
ASML has an outstanding profitability rating, which may justify a higher PE ratio.
ASML's earnings are expected to grow with 15.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.36
EPS Next 2Y11.54%
EPS Next 3Y15.48%
5. Dividend
5.1 Amount
ASML has a yearly dividend return of 0.93%, which is pretty low.
In the last 3 months the price of ASML has falen by -25.91%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.37, ASML pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.93, ASML pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
The dividend of ASML is nicely growing with an annual growth rate of 33.46%!
ASML has been paying a dividend for at least 10 years, so it has a reliable track record.
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 2Y11.54%
EPS Next 3Y15.48%
ASML HOLDING NV-NY REG SHS
NASDAQ:ASML (11/21/2024, 8:13:10 PM)
Premarket: 663 -9.16 (-1.36%)672.16
+13.73 (+2.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
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Market Cap264.44B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.27 | ||
| Fwd PE | 25.81 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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FCF(TTM)
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OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.36
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)
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ROCE(5y)
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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)-8.76%
EPS 3Y32.87%
EPS 5Y
EPS Q2Q%
EPS Next Y-2.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)30.16%
Revenue growth 3Y25.39%
Revenue growth 5Y
Sales Q2Q%
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Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
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