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NASDAQ:ASML—A High-Growth Stock Gearing Up for Its Next Upward Move.

By Mill Chart

Last update: Apr 9, 2024

Exploring Growth Potential: ASML HOLDING NV-NY REG SHS (NASDAQ:ASML) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and ASML HOLDING NV-NY REG SHS has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected ASML HOLDING NV-NY REG SHS on our screen for growth with base formation, suggesting it merits a closer look.

Assessing Growth for NASDAQ:ASML

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:ASML, the assigned 8 reflects its growth potential:

  • ASML shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.47%, which is quite impressive.
  • 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.
  • The Revenue has grown by 30.15% in the past year. This is a very strong growth!
  • The Revenue has been growing by 20.29% on average over the past years. This is a very strong growth!
  • Based on estimates for the next years, ASML will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.71% on average per year.
  • ASML is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.30% yearly.

Exploring NASDAQ:ASML's Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:ASML has earned a 7 out of 10:

  • An Altman-Z score of 10.12 indicates that ASML is not in any danger for bankruptcy at the moment.
  • ASML's Altman-Z score of 10.12 is amongst the best of the industry. ASML outperforms 80.19% of its industry peers.
  • ASML has a debt to FCF ratio of 1.36. This is a very positive value and a sign of high solvency as it would only need 1.36 years to pay back of all of its debts.
  • ASML has a Debt to FCF ratio of 1.36. This is in the better half of the industry: ASML outperforms 73.58% of its industry peers.
  • A Debt/Equity ratio of 0.29 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.

Understanding NASDAQ:ASML's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:ASML, the assigned 9 is noteworthy for profitability:

  • ASML's Return On Assets of 18.84% is amongst the best of the industry. ASML outperforms 90.57% of its industry peers.
  • Looking at the Return On Equity, with a value of 50.07%, ASML belongs to the top of the industry, outperforming 97.17% of the companies in the same industry.
  • ASML's Return On Invested Capital of 29.98% is amongst the best of the industry. ASML outperforms 98.11% 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 11.63%.
  • The 3 year average ROIC (29.47%) for ASML is below the current ROIC(29.98%), indicating increased profibility in the last year.
  • Looking at the Profit Margin, with a value of 29.45%, ASML belongs to the top of the industry, outperforming 91.51% of the companies in the same industry.
  • ASML's Profit Margin has improved in the last couple of years.
  • ASML has a Operating Margin of 34.52%. This is amongst the best in the industry. ASML outperforms 92.45% of its industry peers.
  • In the last couple of years the Operating Margin of ASML has grown nicely.
  • With a decent Gross Margin value of 49.98%, ASML is doing good in the industry, outperforming 64.15% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ASML has grown nicely.

Why is NASDAQ:ASML a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:ASML has a 8 as its setup rating, indicating its current consolidation status.

ASML has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 975.94, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found 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.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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ASML HOLDING NV-NY REG SHS

NASDAQ:ASML (5/24/2024, 7:14:49 PM)

After market: 956 -0.22 (-0.02%)

956.22

+21.97 (+2.35%)

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