ASML HOLDING NV-NY REG SHS (ASML) Stock Fundamental Analysis
NASDAQ:ASML - Nasdaq - USN070592100 - Currency: USD
ASML gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 109 industry peers in the Semiconductors & Semiconductor Equipment industry. ASML scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ASML is valued quite expensively, but it does show have an excellent growth rating. With these ratings, ASML could be worth investigating further for growth and quality investing!.
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.
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
Looking at the Return On Assets, with a value of 16.75%, ASML belongs to the top of the industry, outperforming 89.81% of the companies in the same industry.
ASML has a Return On Equity of 41.56%. This is amongst the best in the industry. ASML outperforms 94.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 25.97%, ASML belongs to the top of the industry, outperforming 95.37% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ASML is significantly above the industry average of 11.96%.
| 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 Profit Margin of 29.16%. This is amongst the best in the industry. ASML outperforms 91.67% of its industry peers.
In the last couple of years the Profit Margin of ASML has grown nicely.
ASML has a Operating Margin of 34.01%. This is amongst the best in the industry. ASML outperforms 93.52% of its industry peers.
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 65.74% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ASML is creating value.
Compared to 1 year ago, ASML has less shares outstanding
Compared to 5 years ago, ASML has less shares outstanding
The debt/assets ratio for ASML has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.48 indicates that ASML is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 8.48, ASML is doing good in the industry, outperforming 72.22% of the companies in the same industry.
ASML has a debt to FCF ratio of 1.54. This is a very positive value and a sign of high solvency as it would only need 1.54 years to pay back of all of its debts.
ASML has a Debt to FCF ratio of 1.54. This is in the better half of the industry: ASML outperforms 75.93% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that ASML is not too dependend on debt financing.
ASML's Debt to Equity ratio of 0.26 is in line compared to the rest of the industry. ASML outperforms 40.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.54 | ||
| Altman-Z | 8.48 |
ROIC/WACC2.16
WACC12%
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.
Looking at the Current ratio, with a value of 1.50, ASML is doing worse than 80.56% of the companies in the same industry.
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.
ASML has a worse Quick ratio (0.82) than 87.96% of its industry peers.
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
ASML shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.76%.
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.
Looking at the last year, ASML shows a very strong growth in Revenue. The Revenue has grown by 30.16%.
Measured over the past years, ASML shows a very strong growth in Revenue. The Revenue has been growing by 20.29% on average per year.
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
ASML is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.57% yearly.
Based on estimates for the next years, ASML will show a quite strong growth in Revenue. The Revenue will grow by 10.45% on average per year.
EPS Next Y-2.53%
EPS Next 2Y11.54%
EPS Next 3Y15.48%
EPS Next 5Y15.57%
Revenue Next Year2.41%
Revenue Next 2Y8.67%
Revenue Next 3Y10.27%
Revenue Next 5Y10.45%
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 39.99, the valuation of ASML can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as ASML.
ASML is valuated rather expensively when we compare the Price/Earnings ratio to 28.58, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 28.44, the valuation of ASML can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ASML indicates a somewhat cheap valuation: ASML is cheaper than 62.04% 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 24.47, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.99 | ||
| Fwd PE | 28.44 |
4.2 Price Multiples
ASML's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ASML is cheaper than 63.89% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ASML.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 93.99 | ||
| EV/EBITDA | 29.26 |
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 15.48% in the coming years.
PEG (NY)N/A
PEG (5Y)1.5
EPS Next 2Y11.54%
EPS Next 3Y15.48%
5. Dividend
5.1 Amount
With a yearly dividend of 0.84%, ASML is not a good candidate for dividend investing.
ASML's Dividend Yield is a higher than the industry average which is at 2.28.
With a Dividend Yield of 0.84, ASML pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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.
ASML has decreased its dividend recently.
Dividend Growth(5Y)33.46%
Div Incr Years1
Div Non Decr Years1
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 (1/24/2025, 8:25:40 PM)
After market: 732 -0.25 (-0.03%)732.25
-13.99 (-1.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners52.27%
Inst Owner Change-0.11%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap292.59B
Analysts80
Price Target889.15 (21.43%)
Short Float %0.44%
Short Ratio1.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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)8.48%
Min EPS beat(2)6.55%
Max EPS beat(2)10.42%
EPS beat(4)4
Avg EPS beat(4)6.7%
Min EPS beat(4)2.72%
Max EPS beat(4)10.42%
EPS beat(8)8
Avg EPS beat(8)8.9%
EPS beat(12)12
Avg EPS beat(12)8.65%
EPS beat(16)15
Avg EPS beat(16)10.23%
Revenue beat(2)1
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-3.8%
Max Revenue beat(2)1.44%
Revenue beat(4)2
Avg Revenue beat(4)-0.53%
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)-0.94%
PT rev (3m)-24.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.78%
EPS NY rev (1m)0%
EPS NY rev (3m)1.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.99 | ||
| Fwd PE | 28.44 | ||
| P/S | 11.05 | ||
| P/FCF | 93.99 | ||
| P/OCF | 45.91 | ||
| P/B | 15.75 | ||
| P/tB | 31.54 | ||
| EV/EBITDA | 29.26 |
EPS(TTM)18.31
EY2.5%
EPS(NY)25.74
Fwd EY3.52%
FCF(TTM)7.79
FCFY1.06%
OCF(TTM)15.95
OCFY2.18%
SpS66.25
BVpS46.49
TBVpS23.22
PEG (NY)N/A
PEG (5Y)1.5
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 8.48 |
F-Score6
WACC12%
ROIC/WACC2.16
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)-8.76%
EPS 3Y32.87%
EPS 5Y26.71%
EPS Q2Q%9.77%
EPS Next Y-2.53%
EPS Next 2Y11.54%
EPS Next 3Y15.48%
EPS Next 5Y15.57%
Revenue 1Y (TTM)30.16%
Revenue growth 3Y25.39%
Revenue growth 5Y20.29%
Sales Q2Q%11.9%
Revenue Next Year2.41%
Revenue Next 2Y8.67%
Revenue Next 3Y10.27%
Revenue Next 5Y10.45%
EBIT growth 1Y-4.96%
EBIT growth 3Y30.87%
EBIT growth 5Y26.96%
EBIT Next Year9.39%
EBIT Next 3Y17.64%
EBIT Next 5Y17.51%
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%