ASML HOLDING NV-NY REG SHS (NASDAQ:ASML) - A Strong Growth Stock with Reasonable Valuation

ASML HOLDING NV (NASDAQ:ASML) stands out as an affordable growth stock based on our screening criteria. The company combines solid growth prospects with strong profitability and financial health, all while maintaining a reasonable valuation.

Growth Prospects

• Past Growth: ASML has demonstrated impressive earnings growth, with EPS increasing by 22.6% over the past year and an average annual growth of 25.62% over the last five years. Revenue growth has also been strong, averaging 19.05% annually.
• Future Expectations: Analysts project continued growth, with EPS expected to rise by 18.8% per year and revenue by 11.29% annually.

Valuation

• P/E Ratio: At 30.74, ASML’s P/E ratio is slightly above the S&P 500 average but remains cheaper than 63.6% of its industry peers.
• Forward P/E: The forward P/E of 24.1 suggests a more reasonable valuation relative to future earnings.
• PEG Ratio: The PEG ratio, which accounts for growth, indicates a fair valuation given ASML’s strong earnings trajectory.

Profitability & Financial Health

• Profit Margins: ASML boasts an operating margin of 31.92% and a net margin of 26.79%, ranking well above most competitors.
• Return Metrics: The company delivers a high ROE (40.98%) and ROIC (25.98%), reflecting efficient capital use.
• Financial Stability: With a solid Altman-Z score (7.21) and manageable debt levels, ASML maintains a healthy balance sheet.

For a deeper look at ASML’s fundamentals, review the full analysis report.

Our Affordable Growth screener lists more stocks with similar growth and value characteristics.

Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.