1389.04 USD
-5.96 (-0.43%)
1387.79 USD
-1.25 (-0.09%)
Overall ASML gets a fundamental rating of 7 out of 10. We evaluated ASML against 113 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make ASML a good candidate 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
- The Return On Assets of ASML (20.71%) is better than 93.81% of its industry peers.
- With an excellent Return On Equity value of 47.39%, ASML belongs to the best of the industry, outperforming 94.69% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 32.62%, ASML belongs to the best of the industry, outperforming 97.35% 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 10.75%.
- The 3 year average ROIC (27.67%) for ASML is below the current ROIC(32.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.71% | ||
| ROE | 47.39% | ||
| ROIC | 32.62% |
ROA(3y)17.06%
ROA(5y)16.62%
ROE(3y)48.22%
ROE(5y)44.12%
ROIC(3y)27.67%
ROIC(5y)25.41%
1.3 Margins
- Looking at the Profit Margin, with a value of 31.73%, ASML belongs to the top of the industry, outperforming 90.27% of the companies in the same industry.
- In the last couple of years the Profit Margin of ASML has grown nicely.
- ASML's Operating Margin of 37.74% is amongst the best of the industry. ASML outperforms 95.58% 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 51.93%, ASML is in the better half of the industry, outperforming 66.37% of the companies in the same industry.
- ASML's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.74% | ||
| PM (TTM) | 31.73% | ||
| GM | 51.93% |
OM growth 3Y-1.42%
OM growth 5Y8.87%
PM growth 3Y-3.59%
PM growth 5Y6.23%
GM growth 3Y-0.04%
GM growth 5Y4.04%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ASML is creating value.
- The number of shares outstanding for ASML remains at a similar level compared to 1 year ago.
- The number of shares outstanding for ASML has been reduced compared to 5 years ago.
- Compared to 1 year ago, ASML has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 12.27 indicates that ASML is not in any danger for bankruptcy at the moment.
- ASML has a better Altman-Z score (12.27) than 74.34% 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.
- The Debt to FCF ratio of ASML (0.51) is better than 80.53% 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.
- Looking at the Debt to Equity ratio, with a value of 0.17, ASML is in line with its industry, outperforming 50.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.51 | ||
| Altman-Z | 12.27 |
ROIC/WACC3.18
WACC10.27%
2.3 Liquidity
- A Current Ratio of 1.41 indicates that ASML should not have too much problems paying its short term obligations.
- The Current ratio of ASML (1.41) is worse than 84.96% of its industry peers.
- ASML has a Quick Ratio of 1.41. 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 has a Quick ratio of 0.79. This is amonst the worse of the industry: ASML underperforms 91.15% of its industry peers.
- ASML does not score too well on the current and quick ratio evaluation. However, as it has 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
- The Earnings Per Share has grown by an impressive 37.61% over the past year.
- 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)37.61%
EPS 3Y10.24%
EPS 5Y25.62%
EPS Q2Q%3.79%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y14.94%
Revenue growth 5Y19.05%
Sales Q2Q%0.65%
3.2 Future
- Based on estimates for the next years, ASML will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.44% on average per year.
- Based on estimates for the next years, ASML will show a quite strong growth in Revenue. The Revenue will grow by 12.10% on average per year.
EPS Next Y31.25%
EPS Next 2Y17.48%
EPS Next 3Y19.72%
EPS Next 5Y19.44%
Revenue Next Year16.7%
Revenue Next 2Y10.56%
Revenue Next 3Y12.02%
Revenue Next 5Y12.1%
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
- Based on the Price/Earnings ratio of 49.00, the valuation of ASML can be described as expensive.
- Based on the Price/Earnings ratio, ASML is valued a bit cheaper than the industry average as 64.60% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. ASML is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 44.68 indicates a quite expensive valuation of ASML.
- ASML's Price/Forward Earnings is on the same level as the industry average.
- ASML's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49 | ||
| Fwd PE | 44.68 |
4.2 Price Multiples
- ASML's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ASML is cheaper than 65.49% 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 72.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.53 | ||
| EV/EBITDA | 34.39 |
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.
- A more expensive valuation may be justified as ASML's earnings are expected to grow with 19.72% in the coming years.
PEG (NY)1.57
PEG (5Y)1.91
EPS Next 2Y17.48%
EPS Next 3Y19.72%
5. Dividend
5.1 Amount
- ASML has a yearly dividend return of 0.39%, which is pretty low.
- ASML's Dividend Yield is a higher than the industry average which is at 0.51.
- Compared to an average S&P500 Dividend Yield of 1.82, ASML's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
5.2 History
- The dividend of ASML is nicely growing with an annual growth rate of 14.61%!
- ASML has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of ASML decreased recently.
Dividend Growth(5Y)14.61%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 24.55% 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.
DP24.55%
EPS Next 2Y17.48%
EPS Next 3Y19.72%
ASML HOLDING NV-NY REG SHS / ASML FAQ
Can you provide the ChartMill fundamental rating for ASML HOLDING NV-NY REG SHS?
ChartMill assigns a fundamental rating of 7 / 10 to ASML.
Can you provide the valuation status for ASML HOLDING NV-NY REG SHS?
ChartMill assigns a valuation rating of 4 / 10 to ASML HOLDING NV-NY REG SHS (ASML). This can be considered as Fairly Valued.
How profitable is ASML HOLDING NV-NY REG SHS (ASML) stock?
ASML HOLDING NV-NY REG SHS (ASML) has a profitability rating of 9 / 10.
What is the valuation of ASML HOLDING NV-NY REG SHS based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ASML HOLDING NV-NY REG SHS (ASML) is 49 and the Price/Book (PB) ratio is 21.39.
What is the earnings growth outlook for ASML HOLDING NV-NY REG SHS?
The Earnings per Share (EPS) of ASML HOLDING NV-NY REG SHS (ASML) is expected to grow by 31.25% in the next year.