While growth is established for ASML HOLDING NV-NY REG SHS (NASDAQ:ASML), the stock's valuation remains reasonable.

ASML HOLDING NV-NY REG SHS (NASDAQ:ASML) has caught the eye of our stock screener as an affordable growth stock. ASML is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Growth Examination for ASML

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. ASML has received a 7 out of 10:

• The Earnings Per Share has grown by an impressive 20.14% over the past year.
• Measured over the past years, ASML shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.62% on average per year.
• ASML shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.05% yearly.
• Based on estimates for the next years, ASML will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.78% on average per year.
• The Revenue is expected to grow by 11.34% on average over the next years. This is quite good.

Evaluating Valuation: ASML

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. ASML boasts a 5 out of 10:

• Based on the Price/Earnings ratio, ASML is valued a bit cheaper than the industry average as 61.47% of the companies are valued more expensively.
• 66.97% of the companies in the same industry are more expensive than ASML, based on the Price/Forward Earnings ratio.
• Based on the Price/Free Cash Flow ratio, ASML is valued a bit cheaper than the industry average as 76.15% of the companies are valued more expensively.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• ASML has an outstanding profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as ASML's earnings are expected to grow with 21.78% in the coming years.

Health Insights: 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. ASML has earned a 7 out of 10:

• An Altman-Z score of 6.30 indicates that ASML is not in any danger for bankruptcy at the moment.
• ASML has a Altman-Z score of 6.30. This is in the better half of the industry: ASML outperforms 70.64% of its industry peers.
• ASML has a debt to FCF ratio of 0.55. This is a very positive value and a sign of high solvency as it would only need 0.55 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.55, ASML belongs to the top of the industry, outperforming 82.57% of the companies in the same industry.
• ASML has a Debt/Equity ratio of 0.21. 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.

Evaluating Profitability: 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. ASML has earned a 9 out of 10:

• The Return On Assets of ASML (15.58%) is better than 88.99% of its industry peers.
• Looking at the Return On Equity, with a value of 40.98%, ASML belongs to the top of the industry, outperforming 93.58% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 25.98%, ASML belongs to the best of the industry, outperforming 95.41% of the companies in the same industry.
• ASML had an Average Return On Invested Capital over the past 3 years of 27.90%. This is significantly above the industry average of 11.14%.
• Looking at the Profit Margin, with a value of 26.79%, ASML belongs to the top of the industry, outperforming 88.99% of the companies in the same industry.
• ASML's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 31.92%, ASML belongs to the top of the industry, outperforming 91.74% of the companies in the same industry.
• In the last couple of years the Operating Margin of ASML has grown nicely.
• ASML has a better Gross Margin (51.28%) than 67.89% of its industry peers.
• In the last couple of years the Gross Margin of ASML has grown nicely.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

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.