News Image

Why NASDAQ:ASML Is a Standout High-Growth Stock in a Consolidation Phase.

By Mill Chart

Last update: May 20, 2024

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.

Growth Analysis for NASDAQ:ASML

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:ASML scores a 8 out of 10:

  • The Earnings Per Share has been growing by 26.71% on average over the past years. This is a very strong growth
  • The Revenue has grown by 30.16% in the past year. This is a very strong growth!
  • ASML shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.29% yearly.
  • Based on estimates for the next years, ASML will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.38% on average per year.
  • Based on estimates for the next years, ASML will show a quite strong growth in Revenue. The Revenue will grow by 13.06% on average per year.

How do we evaluate the Health for NASDAQ:ASML?

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:ASML scores a 7 out of 10:

  • An Altman-Z score of 9.57 indicates that ASML is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of ASML (9.57) is better than 76.64% of its industry peers.
  • The Debt to FCF ratio of ASML is 1.36, which is an excellent value as it means it would take ASML, only 1.36 years of fcf income to pay off all of its debts.
  • ASML has a better Debt to FCF ratio (1.36) than 71.96% of its industry peers.
  • ASML has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
  • 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

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:ASML has earned a 9 out of 10:

  • ASML has a better Return On Assets (18.84%) than 92.52% of its industry peers.
  • ASML has a Return On Equity of 50.06%. This is amongst the best in the industry. ASML outperforms 97.20% of its industry peers.
  • The Return On Invested Capital of ASML (29.98%) is better than 99.07% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ASML is significantly above the industry average of 10.73%.
  • The 3 year average ROIC (29.48%) for ASML is below the current ROIC(29.98%), indicating increased profibility in the last year.
  • ASML's Profit Margin of 29.45% is amongst the best of the industry. ASML outperforms 91.59% of its industry peers.
  • In the last couple of years the Profit Margin of ASML has grown nicely.
  • The Operating Margin of ASML (34.52%) is better than 92.52% of its industry peers.
  • ASML's Operating Margin has improved in the last couple of years.
  • With a decent Gross Margin value of 49.98%, ASML is doing good in the industry, outperforming 64.49% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ASML has grown nicely.

Looking at the Setup

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 8:

ASML has only a medium technical rating, but it does show 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 932.37. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 919.46, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

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

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.

Back

ASML HOLDING NV-NY REG SHS

NASDAQ:ASML (6/18/2024, 9:10:09 PM)

Premarket: 1055.8 -5.58 (-0.53%)

1061.38

+8.91 (+0.85%)

Follow us for more