Investors seeking growth at a reasonable cost should explore ASML HOLDING NV-NY REG SHS (NASDAQ:ASML).

Our stock screening tool has pinpointed ASML HOLDING NV-NY REG SHS (NASDAQ:ASML) as a growth stock that isn't overvalued. ASML is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Growth Analysis for 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. ASML scores a 7 out of 10:

• The Earnings Per Share has grown by an impressive 22.60% 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.
• Measured over the past years, ASML shows a quite strong growth in Revenue. The Revenue has been growing by 19.05% on average per year.
• The Earnings Per Share is expected to grow by 17.78% on average over the next years. This is quite good.
• Based on estimates for the next years, ASML will show a quite strong growth in Revenue. The Revenue will grow by 11.34% on average per year.

Looking at the Valuation

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:

• 61.82% of the companies in the same industry are more expensive than ASML, based on the Price/Earnings ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of ASML indicates a somewhat cheap valuation: ASML is cheaper than 78.18% of the companies listed in the same industry.
• 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 20.74% in the coming years.

Analyzing Health Metrics

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. ASML has earned a 7 out of 10:

• ASML has an Altman-Z score of 6.79. This indicates that ASML is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of ASML (6.79) is better than 70.00% of its industry peers.
• The Debt to FCF ratio of ASML is 0.55, which is an excellent value as it means it would take ASML, only 0.55 years of fcf income to pay off 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 81.82% of the companies in the same industry.
• A Debt/Equity ratio of 0.21 indicates that ASML is not too dependend on debt financing.
• 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.

Assessing Profitability for 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:

• Looking at the Return On Assets, with a value of 15.58%, ASML belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
• The Return On Equity of ASML (40.98%) is better than 94.55% of its industry peers.
• ASML has a Return On Invested Capital of 25.98%. This is amongst the best in the industry. ASML outperforms 95.45% of its industry peers.
• ASML had an Average Return On Invested Capital over the past 3 years of 27.90%. This is significantly above the industry average of 11.26%.
• ASML has a Profit Margin of 26.79%. This is amongst the best in the industry. ASML outperforms 88.18% of its industry peers.
• In the last couple of years the Profit Margin of ASML has grown nicely.
• ASML has a Operating Margin of 31.92%. This is amongst the best in the industry. ASML outperforms 91.82% of its industry peers.
• ASML's Operating Margin has improved in the last couple of years.
• ASML has a Gross Margin of 51.28%. This is in the better half of the industry: ASML outperforms 64.55% of its industry peers.
• ASML's Gross Margin has improved in the last couple of years.

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

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

Keep in mind

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.