Is NASDAQ:ASML suited for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if ASML HOLDING NV-NY REG SHS (NASDAQ:ASML) is suited for quality investing. Investors should of course do their own research, but we spotted ASML HOLDING NV-NY REG SHS showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of ASML HOLDING NV-NY REG SHS

• ASML HOLDING NV-NY REG SHS has shown strong performance in revenue growth over the past 5 years, with a 20.29% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• ASML HOLDING NV-NY REG SHS exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 71.41% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• ASML HOLDING NV-NY REG SHS demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.36, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a robust Profit Quality (5-year) ratio of 102.0%, ASML HOLDING NV-NY REG SHS highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• ASML HOLDING NV-NY REG SHS has experienced impressive EBIT growth over the past 5 years, with 26.97% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• ASML HOLDING NV-NY REG SHS has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Zooming in on the fundamentals.

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to ASML. ASML was compared to 106 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 shows excellent growth, but is valued quite expensive already. These ratings would make ASML suitable for growth and quality investing!

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

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.