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Is NASDAQ:ASML on the Verge of a Major Breakout as a Strong Growth Stock?

By Mill Chart

Last update: Dec 1, 2023

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if ASML HOLDING NV-NY REG SHS (NASDAQ:ASML) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted ASML HOLDING NV-NY REG SHS showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Growth Assessment of NASDAQ:ASML

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:

  • ASML shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.94%, which is quite impressive.
  • ASML shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.59% yearly.
  • Looking at the last year, ASML shows a very strong growth in Revenue. The Revenue has grown by 34.73%.
  • The Revenue has been growing by 18.76% on average over the past years. This is quite good.
  • Based on estimates for the next years, ASML will show a very strong growth in Earnings Per Share. The EPS will grow by 23.25% on average per year.
  • The Revenue is expected to grow by 13.40% on average over the next years. This is quite good.

Health Assessment of 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:

  • ASML has an Altman-Z score of 7.63. This indicates that ASML is financially healthy and has little risk of bankruptcy at the moment.
  • ASML has a better Altman-Z score (7.63) than 72.38% 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 76.19% of the companies in the same industry.
  • A Debt/Equity ratio of 0.35 indicates that ASML is not too dependend on debt financing.
  • Although ASML does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
  • 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.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:ASML, the assigned 9 is a significant indicator of profitability:

  • ASML's Return On Assets of 19.80% is amongst the best of the industry. ASML outperforms 91.43% of its industry peers.
  • ASML has a Return On Equity of 60.17%. This is amongst the best in the industry. ASML outperforms 97.14% of its industry peers.
  • ASML has a Return On Invested Capital of 33.91%. This is amongst the best in the industry. ASML outperforms 99.05% 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 12.18%.
  • The last Return On Invested Capital (33.91%) for ASML is above the 3 year average (25.12%), which is a sign of increasing profitability.
  • ASML's Profit Margin of 30.39% is amongst the best of the industry. ASML outperforms 91.43% of its industry peers.
  • ASML's Profit Margin has improved in the last couple of years.
  • ASML has a better Operating Margin (35.21%) than 90.48% of its industry peers.
  • ASML's Operating Margin has improved in the last couple of years.
  • ASML has a better Gross Margin (50.11%) than 60.95% of its industry peers.
  • In the last couple of years the Gross Margin of ASML has grown nicely.

How does the Setup look for NASDAQ:ASML

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:ASML scores a 8 out of 10:

Besides having an excellent technical rating, ASML also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 683.75, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for ASML in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

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

Our latest full fundamental report of ASML contains the most current fundamental analsysis.

Check the latest full technical report of ASML for a complete technical analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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ASML HOLDING NV-NY REG SHS

NASDAQ:ASML (2/22/2024, 7:00:00 PM)

After market: 949.93 -1.92 (-0.2%)

951.85

+43.64 (+4.81%)

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