Investors should take note of NASDAQ:ASML, a growth stock that remains attractively priced.

Consider ASML HOLDING NV-NY REG SHS (NASDAQ:ASML) as an affordable growth stock, identified by our stock screening tool. NASDAQ:ASML is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Analyzing Growth Metrics

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:ASML boasts a 8 out of 10:

• The Earnings Per Share has grown by an impressive 34.94% 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 23.59% on average per year.
• ASML shows a strong growth in Revenue. In the last year, the Revenue has grown by 34.73%.
• Measured over the past years, ASML shows a quite strong growth in Revenue. The Revenue has been growing by 18.76% on average per year.
• The Earnings Per Share is expected to grow by 23.83% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 15.29% on average over the next years. This is quite good.

Valuation Analysis for NASDAQ:ASML

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:ASML scores a 5 out of 10:

• 65.09% of the companies in the same industry are more expensive than ASML, based on the Price/Free Cash Flow ratio.
• ASML's 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.
• A more expensive valuation may be justified as ASML's earnings are expected to grow with 26.29% in the coming years.

Health Analysis for NASDAQ:ASML

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:ASML has achieved a 7 out of 10:

• An Altman-Z score of 6.97 indicates that ASML is not in any danger for bankruptcy at the moment.
• ASML's Altman-Z score of 6.97 is fine compared to the rest of the industry. ASML outperforms 70.75% of its industry peers.
• The Debt to FCF ratio of ASML is 0.90, which is an excellent value as it means it would take ASML, only 0.90 years of fcf income to pay off all of its debts.
• With a decent Debt to FCF ratio value of 0.90, ASML is doing good in the industry, outperforming 77.36% of the companies in the same industry.
• ASML has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
• Even though the debt/equity ratio score it not favorable for ASML, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
• 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.

A Closer Look at Profitability for NASDAQ:ASML

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:ASML has achieved a 9:

• ASML has a Return On Assets of 19.80%. This is amongst the best in the industry. ASML outperforms 90.57% of its industry peers.
• ASML has a Return On Equity of 60.17%. This is amongst the best in the industry. ASML outperforms 97.17% of its industry peers.
• ASML has a better Return On Invested Capital (33.91%) than 100.00% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for ASML is significantly above the industry average of 13.00%.
• The 3 year average ROIC (25.12%) for ASML is below the current ROIC(33.91%), indicating increased profibility in the last year.
• ASML's Profit Margin of 30.39% is amongst the best of the industry. ASML outperforms 89.62% of its industry peers.
• In the last couple of years the Profit Margin of ASML has grown nicely.
• The Operating Margin of ASML (35.21%) is better than 90.57% 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 50.11%, ASML is in the better half of the industry, outperforming 60.38% of the companies in the same industry.
• ASML's Gross Margin has improved in the last couple of years.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of ASML

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.