ASML HOLDING NV-NY REG SHS (ASML) Stock Fundamental Analysis
NASDAQ:ASML - USN070592100
742.62 USD
-20.84 (-2.73%)
742.9 USD
+0.28 (+0.04%)
Taking everything into account, ASML scores 7 out of 10 in our fundamental rating. ASML was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making ASML a very profitable company, without any liquidiy or solvency issues. ASML is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes ASML very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
ASML had positive earnings in the past year.
In the past year ASML had a positive cash flow from operations.
ASML had positive earnings in each of the past 5 years.
Each year in the past 5 years ASML had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 19.14%, ASML belongs to the best of the industry, outperforming 91.07% of the companies in the same industry.
ASML has a better Return On Equity (43.78%) than 94.64% of its industry peers.
ASML has a Return On Invested Capital of 30.33%. This is amongst the best in the industry. ASML outperforms 97.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ASML is significantly above the industry average of 10.74%.
The last Return On Invested Capital (30.33%) for ASML is above the 3 year average (27.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.14% | ||
| ROE | 43.78% | ||
| ROIC | 30.33% |
ROA(3y)16.75%
ROA(5y)16.43%
ROE(3y)48.67%
ROE(5y)44.39%
ROIC(3y)27.63%
ROIC(5y)25.44%
1.3 Margins
The Profit Margin of ASML (29.31%) is better than 91.96% of its industry peers.
ASML's Profit Margin has improved in the last couple of years.
The Operating Margin of ASML (34.90%) is better than 93.75% of its industry peers.
In the last couple of years the Operating Margin of ASML has grown nicely.
With a decent Gross Margin value of 52.58%, ASML is doing good in the industry, outperforming 69.64% of the companies in the same industry.
ASML's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.9% | ||
| PM (TTM) | 29.31% | ||
| GM | 52.58% |
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.
ASML has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ASML has less shares outstanding
Compared to 1 year ago, ASML has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.63 indicates that ASML is not in any danger for bankruptcy at the moment.
The Altman-Z score of ASML (7.63) is better than 69.64% of its industry peers.
ASML has a debt to FCF ratio of 0.51. This is a very positive value and a sign of high solvency as it would only need 0.51 years to pay back of all of its debts.
ASML has a Debt to FCF ratio of 0.51. This is amongst the best in the industry. ASML outperforms 80.36% of its industry peers.
ASML has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ASML (0.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.51 | ||
| Altman-Z | 7.63 |
ROIC/WACC2.99
WACC10.14%
2.3 Liquidity
A Current Ratio of 1.41 indicates that ASML should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.41, ASML is doing worse than 84.82% of the companies in the same industry.
A Quick Ratio of 0.79 indicates that ASML may have some problems paying its short term obligations.
ASML has a worse Quick ratio (0.79) than 91.96% 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 | 1.41 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
ASML shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.22%, which is quite impressive.
ASML shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.62% yearly.
Looking at the last year, ASML shows a very strong growth in Revenue. The Revenue has grown by 26.41%.
The Revenue has been growing by 19.05% on average over the past years. This is quite good.
EPS 1Y (TTM)40.22%
EPS 3Y10.24%
EPS 5Y25.62%
EPS Q2Q%47.13%
Revenue 1Y (TTM)26.41%
Revenue growth 3Y14.94%
Revenue growth 5Y19.05%
Sales Q2Q%23.21%
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 17.02% yearly.
Based on estimates for the next years, ASML will show a quite strong growth in Revenue. The Revenue will grow by 10.64% on average per year.
EPS Next Y25.9%
EPS Next 2Y15.57%
EPS Next 3Y17.44%
EPS Next 5Y17.02%
Revenue Next Year15.84%
Revenue Next 2Y9.76%
Revenue Next 3Y10.66%
Revenue Next 5Y10.64%
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
Based on the Price/Earnings ratio of 26.52, the valuation of ASML can be described as expensive.
Based on the Price/Earnings ratio, ASML is valued a bit cheaper than 71.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of ASML to the average of the S&P500 Index (27.13), we can say ASML is valued inline with the index average.
The Price/Forward Earnings ratio is 24.79, which indicates a rather expensive current valuation of ASML.
Based on the Price/Forward Earnings ratio, ASML is valued a bit cheaper than 61.61% of the companies in the same industry.
ASML is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 24.79 |
4.2 Price Multiples
ASML's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ASML is cheaper than 68.75% of the companies in the same industry.
ASML's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ASML is cheaper than 76.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.21 | ||
| EV/EBITDA | 20.39 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as ASML's earnings are expected to grow with 17.44% in the coming years.
PEG (NY)1.02
PEG (5Y)1.04
EPS Next 2Y15.57%
EPS Next 3Y17.44%
5. Dividend
5.1 Amount
ASML has a yearly dividend return of 0.99%, which is pretty low.
Compared to an average industry Dividend Yield of 2.35, ASML pays a better dividend. On top of this ASML pays more dividend than 81.25% of the companies listed in the same industry.
With a Dividend Yield of 0.99, ASML pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
On average, the dividend of ASML grows each year by 14.61%, which is quite nice.
ASML has paid a dividend for at least 10 years, which is a reliable track record.
ASML has decreased its dividend recently.
Dividend Growth(5Y)14.61%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ASML pays out 26.57% of its income as dividend. This is a sustainable payout ratio.
ASML's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP26.57%
EPS Next 2Y15.57%
EPS Next 3Y17.44%
742.62
-20.84 (-2.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners50.81%
Inst Owner Change-14.63%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap292.47B
Analysts75.12
Price Target889.29 (19.75%)
Short Float %0.64%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend7.27
Dividend Growth(5Y)14.61%
DP26.57%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.54%
Min EPS beat(2)1.85%
Max EPS beat(2)11.23%
EPS beat(4)3
Avg EPS beat(4)5.03%
Min EPS beat(4)-0.46%
Max EPS beat(4)11.23%
EPS beat(8)7
Avg EPS beat(8)5.91%
EPS beat(12)11
Avg EPS beat(12)7.64%
EPS beat(16)15
Avg EPS beat(16)7.77%
Revenue beat(2)1
Avg Revenue beat(2)-1.38%
Min Revenue beat(2)-3.04%
Max Revenue beat(2)0.27%
Revenue beat(4)3
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-3.04%
Max Revenue beat(4)2.45%
Revenue beat(8)5
Avg Revenue beat(8)-0.26%
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)-3.25%
PT rev (3m)-0.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.11%
EPS NY rev (1m)1.18%
EPS NY rev (3m)1.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.63%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 24.79 | ||
| P/S | 7.8 | ||
| P/FCF | 27.21 | ||
| P/OCF | 22.41 | ||
| P/B | 11.65 | ||
| P/tB | 21.3 | ||
| EV/EBITDA | 20.39 |
EPS(TTM)28
EY3.77%
EPS(NY)29.96
Fwd EY4.03%
FCF(TTM)27.29
FCFY3.67%
OCF(TTM)33.13
OCFY4.46%
SpS95.21
BVpS63.74
TBVpS34.87
PEG (NY)1.02
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.14% | ||
| ROE | 43.78% | ||
| ROCE | 36.63% | ||
| ROIC | 30.33% | ||
| ROICexc | 39.72% | ||
| ROICexgc | 68.12% | ||
| OM | 34.9% | ||
| PM (TTM) | 29.31% | ||
| GM | 52.58% | ||
| FCFM | 28.66% |
ROA(3y)16.75%
ROA(5y)16.43%
ROE(3y)48.67%
ROE(5y)44.39%
ROIC(3y)27.63%
ROIC(5y)25.44%
ROICexc(3y)43.14%
ROICexc(5y)39.83%
ROICexgc(3y)80.76%
ROICexgc(5y)81.19%
ROCE(3y)33.37%
ROCE(5y)30.72%
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-Score8
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.51 | ||
| Debt/EBITDA | 0.3 | ||
| Cap/Depr | 206.83% | ||
| Cap/Sales | 6.14% | ||
| Interest Coverage | 79.5 | ||
| Cash Conversion | 91.9% | ||
| Profit Quality | 97.79% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 7.63 |
F-Score8
WACC10.14%
ROIC/WACC2.99
Cap/Depr(3y)258.74%
Cap/Depr(5y)228.24%
Cap/Sales(3y)8.6%
Cap/Sales(5y)9.22%
Profit Quality(3y)91.44%
Profit Quality(5y)107.3%
High Growth Momentum
Growth
EPS 1Y (TTM)40.22%
EPS 3Y10.24%
EPS 5Y25.62%
EPS Q2Q%47.13%
EPS Next Y25.9%
EPS Next 2Y15.57%
EPS Next 3Y17.44%
EPS Next 5Y17.02%
Revenue 1Y (TTM)26.41%
Revenue growth 3Y14.94%
Revenue growth 5Y19.05%
Sales Q2Q%23.21%
Revenue Next Year15.84%
Revenue Next 2Y9.76%
Revenue Next 3Y10.66%
Revenue Next 5Y10.64%
EBIT growth 1Y37.16%
EBIT growth 3Y9.72%
EBIT growth 5Y27.13%
EBIT Next Year33.08%
EBIT Next 3Y21.81%
EBIT Next 5Y17.01%
FCF growth 1Y57.21%
FCF growth 3Y-3.05%
FCF growth 5Y29.82%
OCF growth 1Y29.28%
OCF growth 3Y-1.24%
OCF growth 5Y25.03%