ASML HOLDING NV (ASML.AS)
NL0010273215 - Common Stock
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 gets an excellent profitability rating and is at the same time showing great financial health properties. ASML shows excellent growth, but is valued quite expensive already. This makes ASML very considerable 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.
Each year in the past 5 years ASML had a positive operating cash flow.
1.2 Ratios
ASML has a Return On Assets of 18.84%. This is amongst the best in the industry. ASML outperforms 84.91% of its industry peers.
ASML has a Return On Equity of 50.06%. This is amongst the best in the industry. ASML outperforms 88.68% of its industry peers.
ASML has a better Return On Invested Capital (29.98%) than 90.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ASML is significantly above the industry average of 17.11%.
The last Return On Invested Capital (29.98%) for ASML is above the 3 year average (29.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.84% | ||
| ROE | 50.06% | ||
| ROIC | 29.98% |
ROA(3y)18.13%
ROA(5y)15.59%
ROE(3y)52.84%
ROE(5y)40.26%
ROIC(3y)29.48%
ROIC(5y)23.28%
1.3 Margins
ASML's Profit Margin of 29.45% is amongst the best of the industry. ASML outperforms 86.79% of its industry peers.
In the last couple of years the Profit Margin of ASML has grown nicely.
ASML has a Operating Margin of 34.52%. This is amongst the best in the industry. ASML outperforms 84.91% of its industry peers.
In the last couple of years the Operating Margin of ASML has grown nicely.
The Gross Margin of ASML (49.98%) is better than 66.04% of its industry peers.
In the last couple of years the Gross Margin of ASML has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.52% | ||
| PM (TTM) | 29.45% | ||
| GM | 49.98% |
OM growth 3Y4.37%
OM growth 5Y5.55%
PM growth 3Y3.65%
PM growth 5Y5%
GM growth 3Y3.14%
GM growth 5Y3%
2. Health
2.1 Basic Checks
ASML has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ASML has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ASML has been reduced compared to 5 years ago.
The debt/assets ratio for ASML has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.10 indicates that ASML is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.10, ASML is in the better half of the industry, outperforming 77.36% of the companies in the same industry.
ASML has a debt to FCF ratio of 1.36. This is a very positive value and a sign of high solvency as it would only need 1.36 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.36, ASML is in the better half of the industry, outperforming 79.25% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that ASML is not too dependend on debt financing.
ASML has a Debt to Equity ratio (0.29) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.36 | ||
| Altman-Z | 9.1 |
ROIC/WACC2.85
WACC10.5%
2.3 Liquidity
A Current Ratio of 1.48 indicates that ASML should not have too much problems paying its short term obligations.
ASML's Current ratio of 1.48 is on the low side compared to the rest of the industry. ASML is outperformed by 83.02% of its industry peers.
ASML has a Quick Ratio of 1.48. This is a bad value and indicates that ASML is not financially healthy enough and could expect problems in meeting its short term obligations.
ASML's Quick ratio of 0.94 is on the low side compared to the rest of the industry. ASML is outperformed by 84.91% 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 | 1.48 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The earnings per share for ASML have decreased by -9.07% in the last year.
ASML shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.71% yearly.
Looking at the last year, ASML shows a very strong growth in Revenue. The Revenue has grown by 30.16%.
ASML shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.29% yearly.
EPS 1Y (TTM)-9.07%
EPS 3Y32.87%
EPS 5Y26.71%
EPS Q2Q%-19.93%
Revenue 1Y (TTM)30.16%
Revenue growth 3Y25.39%
Revenue growth 5Y20.29%
Sales Q2Q%-11.04%
3.2 Future
The Earnings Per Share is expected to grow by 20.08% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 14.02% on average over the next years. This is quite good.
EPS Next Y-3.27%
EPS Next 2Y24.56%
EPS Next 3Y20.81%
EPS Next 5Y20.08%
Revenue Next Year1.55%
Revenue Next 2Y15.73%
Revenue Next 3Y13.39%
Revenue Next 5Y14.02%
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 48.07, which means the current valuation is very expensive for ASML.
Based on the Price/Earnings ratio, ASML is valued a bit more expensive than 64.15% of the companies in the same industry.
ASML is valuated expensively when we compare the Price/Earnings ratio to 24.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 26.59, which means the current valuation is very expensive for ASML.
67.92% of the companies in the same industry are cheaper than ASML, based on the Price/Forward Earnings ratio.
ASML's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.07 | ||
| Fwd PE | 26.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASML is valued a bit more expensive than the industry average as 60.38% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ASML is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 95.09 | ||
| EV/EBITDA | 29.57 |
4.3 Compensation for Growth
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 20.81% in the coming years.
PEG (NY)N/A
PEG (5Y)1.8
EPS Next 2Y24.56%
EPS Next 3Y20.81%
5. Dividend
5.1 Amount
With a yearly dividend of 0.74%, ASML is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.13, ASML has a dividend in line with its industry peers.
With a Dividend Yield of 0.74, ASML pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
The dividend of ASML is nicely growing with an annual growth rate of 33.46%!
Dividend Growth(5Y)33.46%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
28.94% of the earnings are spent on dividend by ASML. This is a low number and sustainable payout ratio.
ASML's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.94%
EPS Next 2Y24.56%
EPS Next 3Y20.81%
ASML HOLDING NV
AMS:ASML (7/26/2024, 5:35:30 PM)
820.5
+20.9 (+2.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap322.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.07 | ||
| Fwd PE | 26.59 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.84% | ||
| ROE | 50.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 34.52% | ||
| PM (TTM) | 29.45% | ||
| GM | 49.98% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-9.07%
EPS 3Y32.87%
EPS 5Y
EPS Q2Q%
EPS Next Y-3.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)30.16%
Revenue growth 3Y25.39%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y