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

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether ASML HOLDING NV-NY REG SHS (NASDAQ:ASML) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but ASML HOLDING NV-NY REG SHS has surfaced on our radar for growth with base formation, warranting further examination.

Assessing Growth Metrics for NASDAQ:ASML

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:ASML has earned a 8 for growth:

• 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%.
• ASML shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.76% yearly.
• ASML is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.01% yearly.
• ASML is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.48% yearly.

Health Assessment of NASDAQ:ASML

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:ASML has earned a 7 out of 10:

• ASML has an Altman-Z score of 8.13. This indicates that ASML is financially healthy and has little risk of bankruptcy at the moment.
• ASML has a Altman-Z score of 8.13. This is in the better half of the industry: ASML outperforms 69.52% of its industry peers.
• ASML has a debt to FCF ratio of 0.90. This is a very positive value and a sign of high solvency as it would only need 0.90 years to pay back of all of its debts.
• ASML has a better Debt to FCF ratio (0.90) than 75.24% of its industry peers.
• A Debt/Equity ratio of 0.35 indicates that ASML is not too dependend on debt financing.
• 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.
• 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.

What does the Profitability looks like for NASDAQ:ASML

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:ASML scores a 9 out of 10:

• The Return On Assets of ASML (19.80%) is better than 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 98.10% of its industry peers.
• With an excellent Return On Invested Capital value of 33.91%, ASML belongs to the best of the industry, outperforming 99.05% 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 12.11%.
• 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 91.43% of its industry peers.
• ASML's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 35.22%, ASML belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
• ASML's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 50.10%, ASML is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
• ASML's Gross Margin has improved in the last couple of years.

How do we evaluate the setup for NASDAQ:ASML?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:ASML is 7:

Besides having an excellent technical rating, ASML also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 757.86. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 753.44, a Stop Loss order could be placed below this zone.

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

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

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

Disclaimer

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.