ASML HOLDING NV (ASML.AS) Stock Fundamental Analysis
AMS:ASML - Euronext Amsterdam - NL0010273215 - Common Stock - Currency: EUR
Taking everything into account, ASML scores 7 out of 10 in our fundamental rating. 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 is growing strongly while it is still valued neutral. This is a good combination! With these ratings, ASML could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year ASML was profitable.
In the past year ASML had a positive cash flow from operations.
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's Return On Assets of 15.58% is amongst the best of the industry. ASML outperforms 83.02% of its industry peers.
ASML has a better Return On Equity (40.98%) than 94.34% of its industry peers.
With an excellent Return On Invested Capital value of 25.98%, ASML belongs to the best of the industry, outperforming 94.34% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ASML is significantly above the industry average of 15.36%.
| 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
With an excellent Profit Margin value of 26.79%, ASML belongs to the best of the industry, outperforming 84.91% of the companies in the same industry.
ASML's Profit Margin has improved in the last couple of years.
ASML has a Operating Margin of 31.92%. This is amongst the best in the industry. ASML outperforms 81.13% of its industry peers.
ASML's Operating Margin has improved in the last couple of years.
ASML has a better Gross Margin (51.28%) than 71.70% 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.
Compared to 1 year ago, ASML has about the same amount of shares outstanding.
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
ASML has an Altman-Z score of 6.65. This indicates that ASML is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.65, ASML is in the better half of the industry, outperforming 64.15% of the companies in the same industry.
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.
ASML has a Debt to FCF ratio of 0.55. This is amongst the best in the industry. ASML outperforms 90.57% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that ASML is not too dependend on debt financing.
ASML's Debt to Equity ratio of 0.21 is in line compared to the rest of the industry. ASML outperforms 58.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 6.65 |
ROIC/WACC2.52
WACC10.33%
2.3 Liquidity
A Current Ratio of 1.53 indicates that ASML should not have too much problems paying its short term obligations.
ASML's Current ratio of 1.53 is on the low side compared to the rest of the industry. ASML is outperformed by 73.58% of its industry peers.
ASML has a Quick Ratio of 1.53. 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 0.99 is on the low side compared to the rest of the industry. ASML is outperformed by 73.58% 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
The Revenue has been growing slightly by 2.56% in the past 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.
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.
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.
EPS Next Y24.43%
EPS Next 2Y21.11%
EPS Next 3Y20.74%
EPS Next 5Y17.78%
Revenue Next Year15.04%
Revenue Next 2Y12.26%
Revenue Next 3Y12.47%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
ASML is valuated quite expensively with a Price/Earnings ratio of 27.51.
ASML's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.22. ASML is around the same levels.
A Price/Forward Earnings ratio of 21.58 indicates a rather expensive valuation of ASML.
ASML's Price/Forward Earnings is on the same level as the industry average.
ASML is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.51 | ||
| Fwd PE | 21.58 |
4.2 Price Multiples
ASML's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ASML is more expensive than 67.92% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ASML indicates a somewhat cheap valuation: ASML is cheaper than 75.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.4 | ||
| EV/EBITDA | 23.34 |
4.3 Compensation for Growth
ASML's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ASML 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)1.13
PEG (5Y)1.07
EPS Next 2Y21.11%
EPS Next 3Y20.74%
5. Dividend
5.1 Amount
ASML has a Yearly Dividend Yield of 1.10%.
ASML's Dividend Yield is a higher than the industry average which is at 1.50.
Compared to an average S&P500 Dividend Yield of 2.44, ASML's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
The dividend of ASML is nicely growing with an annual growth rate of 14.61%!
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.
ASML's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.4%
EPS Next 2Y21.11%
EPS Next 3Y20.74%
AMS:ASML (5/2/2025, 7:00:00 PM)
608.9
+26.4 (+4.53%)
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 Cap239.80B
Analysts80
Price Target797.17 (30.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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)-8.22%
PT rev (3m)-7.75%
EPS NQ rev (1m)14.05%
EPS NQ rev (3m)21.93%
EPS NY rev (1m)-1.87%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)4.2%
Revenue NQ rev (3m)8.04%
Revenue NY rev (1m)-1.14%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.51 | ||
| Fwd PE | 21.58 | ||
| P/S | 8.48 | ||
| P/FCF | 26.4 | ||
| P/OCF | 21.48 | ||
| P/B | 12.98 | ||
| P/tB | 18.08 | ||
| EV/EBITDA | 23.34 |
EPS(TTM)22.13
EY3.63%
EPS(NY)28.22
Fwd EY4.63%
FCF(TTM)23.06
FCFY3.79%
OCF(TTM)28.35
OCFY4.66%
SpS71.76
BVpS46.92
TBVpS33.69
PEG (NY)1.13
PEG (5Y)1.07
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 | 6.65 |
F-Score7
WACC10.33%
ROIC/WACC2.52
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 Year15.04%
Revenue Next 2Y12.26%
Revenue Next 3Y12.47%
Revenue Next 5Y11.34%
EBIT growth 1Y-5.14%
EBIT growth 3Y9.72%
EBIT growth 5Y27.13%
EBIT Next Year35.67%
EBIT Next 3Y23.1%
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%