ASML HOLDING NV-NY REG SHS (NASDAQ:ASML) can be considered a quality stock. Here's why.

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 has shown strong performance in revenue growth over the past 5 years, with a 19.05% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a robust ROIC excluding cash and goodwill at 70.04%, ASML showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• ASML maintains a healthy Debt/Free Cash Flow Ratio of 0.55, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a robust Profit Quality (5-year) ratio of 107.0%, ASML 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 has experienced impressive EBIT growth over the past 5 years, with 27.13% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• ASML 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.

What is the full fundamental picture of ASML telling us.

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to ASML. ASML was compared to 109 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 has a correct valuation and a medium growth rate. This makes ASML very considerable for 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

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.