ASML HOLDING NV (ASML.AS) Stock Fundamental Analysis
AMS:ASML - Euronext Amsterdam - NL0010273215 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to ASML. ASML was compared to 53 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 is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make ASML a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year ASML was profitable.
ASML had a positive operating cash flow in the past year.
Each year in the past 5 years ASML has been profitable.
ASML had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.58%, ASML belongs to the top of the industry, outperforming 81.13% of the companies in the same industry.
ASML has a better Return On Equity (40.98%) than 90.57% of its industry peers.
ASML has a better Return On Invested Capital (25.98%) than 90.57% 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 15.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.58% | ||
| ROE | 40.98% | ||
| ROIC | 25.98% |
ROA(3y)16.96%
ROA(5y)16.56%
ROE(3y)49.24%
ROE(5y)44.73%
ROIC(3y)27.9%
ROIC(5y)25.53%
1.3 Margins
ASML has a better Profit Margin (26.79%) than 81.13% of its industry peers.
In the last couple of years the Profit Margin of ASML has grown nicely.
ASML has a better Operating Margin (31.92%) than 77.36% of its industry peers.
In the last couple of years the Operating Margin of ASML has grown nicely.
ASML has a Gross Margin of 51.28%. This is in the better half of the industry: ASML outperforms 69.81% of its industry peers.
In the last couple of years the Gross Margin of ASML has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.92% | ||
| PM (TTM) | 26.79% | ||
| GM | 51.28% |
OM growth 3Y-4.54%
OM growth 5Y6.79%
PM growth 3Y-6.68%
PM growth 5Y4.17%
GM growth 3Y0.44%
GM growth 5Y4.34%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ASML is creating value.
The number of shares outstanding for ASML remains at a similar level compared to 1 year ago.
ASML has less shares outstanding than it did 5 years ago.
ASML has a better debt/assets ratio than last year.
2.2 Solvency
ASML has an Altman-Z score of 6.92. This indicates that ASML is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 6.92, ASML is doing good in the industry, outperforming 67.92% of the companies in the same industry.
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.
ASML's Debt to FCF ratio of 0.55 is amongst the best of the industry. ASML outperforms 86.79% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that ASML is not too dependend on debt financing.
ASML has a Debt to Equity ratio (0.21) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 6.92 |
ROIC/WACC2.47
WACC10.52%
2.3 Liquidity
A Current Ratio of 1.53 indicates that ASML should not have too much problems paying its short term obligations.
ASML has a Current ratio of 1.53. This is in the lower half of the industry: ASML underperforms 77.36% of its industry peers.
A Quick Ratio of 0.99 indicates that ASML may have some problems paying its short term obligations.
ASML's Quick ratio of 0.99 is on the low side compared to the rest of the industry. ASML is outperformed by 77.36% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
ASML shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.60%, which is quite impressive.
The Earnings Per Share has been growing by 25.62% on average over the past years. This is a very strong growth
ASML shows a small growth in Revenue. In the last year, the Revenue has grown by 2.56%.
The Revenue has been growing by 19.05% on average over the past years. This is quite good.
EPS 1Y (TTM)22.6%
EPS 3Y10.24%
EPS 5Y25.62%
EPS Q2Q%92.93%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y14.94%
Revenue growth 5Y19.05%
Sales Q2Q%46.34%
3.2 Future
ASML is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.78% yearly.
ASML is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.34% yearly.
EPS Next Y24.43%
EPS Next 2Y21.11%
EPS Next 3Y20.74%
EPS Next 5Y17.78%
Revenue Next Year15.08%
Revenue Next 2Y12.23%
Revenue Next 3Y12.65%
Revenue Next 5Y11.34%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.04, which means the current valuation is very expensive for ASML.
The rest of the industry has a similar Price/Earnings ratio as ASML.
ASML is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.77, the valuation of ASML can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ASML indicates a slightly more expensive valuation: ASML is more expensive than 60.38% of the companies listed in the same industry.
ASML is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.04 | ||
| Fwd PE | 22.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ASML indicates a slightly more expensive valuation: ASML is more expensive than 66.04% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ASML is valued a bit cheaper than 75.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.86 | ||
| EV/EBITDA | 24.68 |
4.3 Compensation for Growth
ASML's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ASML has an outstanding profitability rating, which may justify a higher PE ratio.
ASML's earnings are expected to grow with 20.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)1.13
EPS Next 2Y21.11%
EPS Next 3Y20.74%
5. Dividend
5.1 Amount
ASML has a yearly dividend return of 0.96%, which is pretty low.
ASML's Dividend Yield is a higher than the industry average which is at 1.37.
With a Dividend Yield of 0.96, ASML pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
On average, the dividend of ASML grows each year by 14.61%, which is quite nice.
Dividend Growth(5Y)14.61%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
32.40% of the earnings are spent on dividend by ASML. This is a low number and sustainable payout ratio.
The dividend of ASML is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.4%
EPS Next 2Y21.11%
EPS Next 3Y20.74%
AMS:ASML (5/23/2025, 7:00:00 PM)
642.6
-14.2 (-2.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners52.38%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap253.08B
Analysts80
Price Target792.42 (23.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend6.24
Dividend Growth(5Y)14.61%
DP32.4%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.52%
Min EPS beat(2)-0.46%
Max EPS beat(2)7.51%
EPS beat(4)3
Avg EPS beat(4)6.1%
Min EPS beat(4)-0.46%
Max EPS beat(4)10.42%
EPS beat(8)7
Avg EPS beat(8)7.03%
EPS beat(12)11
Avg EPS beat(12)7.51%
EPS beat(16)14
Avg EPS beat(16)8.25%
Revenue beat(2)2
Avg Revenue beat(2)1.27%
Min Revenue beat(2)0.08%
Max Revenue beat(2)2.45%
Revenue beat(4)3
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-3.8%
Max Revenue beat(4)2.45%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-8.97%
PT rev (3m)-9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.57%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.04 | ||
| Fwd PE | 22.77 | ||
| P/S | 8.95 | ||
| P/FCF | 27.86 | ||
| P/OCF | 22.66 | ||
| P/B | 13.7 | ||
| P/tB | 19.08 | ||
| EV/EBITDA | 24.68 |
EPS(TTM)22.13
EY3.44%
EPS(NY)28.22
Fwd EY4.39%
FCF(TTM)23.06
FCFY3.59%
OCF(TTM)28.35
OCFY4.41%
SpS71.76
BVpS46.92
TBVpS33.69
PEG (NY)1.19
PEG (5Y)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.58% | ||
| ROE | 40.98% | ||
| ROCE | 31.62% | ||
| ROIC | 25.98% | ||
| ROICexc | 46.94% | ||
| ROICexgc | 70.04% | ||
| OM | 31.92% | ||
| PM (TTM) | 26.79% | ||
| GM | 51.28% | ||
| FCFM | 32.14% |
ROA(3y)16.96%
ROA(5y)16.56%
ROE(3y)49.24%
ROE(5y)44.73%
ROIC(3y)27.9%
ROIC(5y)25.53%
ROICexc(3y)43.46%
ROICexc(5y)39.92%
ROICexgc(3y)81.29%
ROICexgc(5y)81.27%
ROCE(3y)33.95%
ROCE(5y)31.07%
ROICexcg growth 3Y-15.63%
ROICexcg growth 5Y18.79%
ROICexc growth 3Y0.79%
ROICexc growth 5Y25.18%
OM growth 3Y-4.54%
OM growth 5Y6.79%
PM growth 3Y-6.68%
PM growth 5Y4.17%
GM growth 3Y0.44%
GM growth 5Y4.34%
F-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.55 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 226.77% | ||
| Cap/Sales | 7.37% | ||
| Interest Coverage | 56.39 | ||
| Cash Conversion | 112.32% | ||
| Profit Quality | 119.96% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 6.92 |
F-Score7
WACC10.52%
ROIC/WACC2.47
Cap/Depr(3y)259.75%
Cap/Depr(5y)228.84%
Cap/Sales(3y)9.74%
Cap/Sales(5y)9.91%
Profit Quality(3y)91.57%
Profit Quality(5y)107.38%
High Growth Momentum
Growth
EPS 1Y (TTM)22.6%
EPS 3Y10.24%
EPS 5Y25.62%
EPS Q2Q%92.93%
EPS Next Y24.43%
EPS Next 2Y21.11%
EPS Next 3Y20.74%
EPS Next 5Y17.78%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y14.94%
Revenue growth 5Y19.05%
Sales Q2Q%46.34%
Revenue Next Year15.08%
Revenue Next 2Y12.23%
Revenue Next 3Y12.65%
Revenue Next 5Y11.34%
EBIT growth 1Y-5.14%
EBIT growth 3Y9.72%
EBIT growth 5Y27.13%
EBIT Next Year33.08%
EBIT Next 3Y21.81%
EBIT Next 5Y19.23%
FCF growth 1Y167.57%
FCF growth 3Y-3.05%
FCF growth 5Y29.82%
OCF growth 1Y70.84%
OCF growth 3Y-1.24%
OCF growth 5Y25.03%