ASML HOLDING NV-NY REG SHS (ASML)
USN070592100
Taking everything into account, ASML scores 7 out of 10 in our fundamental rating. ASML was compared to 109 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 valued quite expensive, but it does show an excellent growth. 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.
ASML had positive earnings in each of the past 5 years.
ASML had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ASML has a better Return On Assets (18.84%) than 93.58% of its industry peers.
The Return On Equity of ASML (50.06%) is better than 98.17% of its industry peers.
With an excellent Return On Invested Capital value of 29.98%, ASML belongs to the best of the industry, outperforming 99.08% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ASML is significantly above the industry average of 10.70%.
The 3 year average ROIC (29.48%) for ASML is below the current ROIC(29.98%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 29.45%, ASML belongs to the best of the industry, outperforming 92.66% of the companies in the same industry.
ASML's Profit Margin has improved in the last couple of years.
The Operating Margin of ASML (34.52%) is better than 94.50% of its industry peers.
In the last couple of years the Operating Margin of ASML has grown nicely.
Looking at the Gross Margin, with a value of 49.98%, ASML is in the better half of the industry, outperforming 65.14% of the companies in the same industry.
ASML's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ASML is creating value.
Compared to 1 year ago, ASML has less shares outstanding
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 9.06. This indicates that ASML is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 9.06, ASML is doing good in the industry, outperforming 77.98% of the companies in the same industry.
The Debt to FCF ratio of ASML is 1.36, which is an excellent value as it means it would take ASML, only 1.36 years of fcf income to pay off all of its debts.
ASML has a better Debt to FCF ratio (1.36) than 73.39% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that ASML is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.29, ASML is not doing good in the industry: 60.55% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for ASML, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.36 | ||
| Altman-Z | 9.06 |
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 has a worse Current ratio (1.48) than 81.65% of its industry peers.
A Quick Ratio of 0.94 indicates that ASML may have some problems paying its short term obligations.
With a Quick ratio value of 0.94, ASML is not doing good in the industry: 83.49% of the companies in the same industry are doing better.
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
ASML shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.07%.
The Earnings Per Share has been growing by 26.71% on average over the past years. This is a very strong growth
ASML shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.16%.
The Revenue has been growing by 20.29% on average over the past years. This is a very strong growth!
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
ASML is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.08% yearly.
ASML is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.02% yearly.
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.
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
A Price/Earnings ratio of 47.97 indicates a quite expensive valuation of ASML.
The rest of the industry has a similar Price/Earnings ratio as ASML.
ASML is valuated expensively when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 26.53, which means the current valuation is very expensive for ASML.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ASML is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, ASML is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.97 | ||
| Fwd PE | 26.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASML is valued a bit cheaper than the industry average as 65.14% of the companies are valued more expensively.
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 | 94.88 | ||
| EV/EBITDA | 29.39 |
4.3 Compensation for Growth
ASML has an outstanding profitability rating, which may justify a higher PE ratio.
ASML's earnings are expected to grow with 20.81% in the coming years. This may justify a more expensive valuation.
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.
ASML's Dividend Yield is a higher than the industry average which is at 1.79.
With a Dividend Yield of 0.74, ASML pays less dividend than the S&P500 average, which is at 2.30.
| 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%!
ASML has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)33.46%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ASML pays out 28.94% of its income as dividend. This is a 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-NY REG SHS
NASDAQ:ASML (7/26/2024, 7:17:18 PM)
After market: 888.83 +0.44 (+0.05%)888.39
+25.76 (+2.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
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Market Cap349.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.97 | ||
| Fwd PE | 26.53 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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OCF(TTM)
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SpS
BVpS
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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)
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ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
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PM growth 5Y
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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%
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Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
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