ASML HOLDING NV-NY REG SHS (ASML) Stock Fundamental Analysis
NASDAQ:ASML - Nasdaq - USN070592100 - Currency: USD
We assign a fundamental rating of 7 out of 10 to ASML. ASML was compared to 110 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 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.
ASML had a positive operating cash flow in the past year.
In the past 5 years ASML has always been profitable.
Each year in the past 5 years ASML had a positive operating cash flow.
1.2 Ratios
ASML has a better Return On Assets (15.58%) than 90.00% of its industry peers.
Looking at the Return On Equity, with a value of 40.98%, ASML belongs to the top of the industry, outperforming 94.55% of the companies in the same industry.
The Return On Invested Capital of ASML (25.98%) is better than 96.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ASML is significantly above the industry average of 10.57%.
| 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
The Profit Margin of ASML (26.79%) is better than 87.27% of its industry peers.
ASML's Profit Margin has improved in the last couple of years.
The Operating Margin of ASML (31.92%) is better than 91.82% of its industry peers.
In the last couple of years the Operating Margin of ASML has grown nicely.
ASML's Gross Margin of 51.28% is fine compared to the rest of the industry. ASML outperforms 66.36% of its industry peers.
ASML's Gross Margin has improved in the last couple of years.
| 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.
Compared to 5 years ago, ASML has less shares outstanding
The debt/assets ratio for ASML has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.03 indicates that ASML is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.03, ASML is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
The Debt to FCF ratio of ASML is 0.55, which is an excellent value as it means it would take ASML, only 0.55 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.55, ASML is doing good in the industry, outperforming 79.09% of the companies in the same industry.
ASML has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
ASML has a Debt to Equity ratio (0.21) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 7.03 |
ROIC/WACC2.43
WACC10.69%
2.3 Liquidity
ASML has a Current Ratio of 1.53. This is a normal value and indicates that ASML is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ASML (1.53) is worse than 83.64% 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.
Looking at the Quick ratio, with a value of 0.99, ASML is doing worse than 87.27% of the companies in the same industry.
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 | 1.53 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.60% over the past year.
Measured over the past years, ASML shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.62% on average per year.
The Revenue has been growing slightly by 2.56% in the past year.
ASML shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.05% yearly.
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
Based on estimates for the next years, ASML will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.86% on average per year.
ASML is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.02% yearly.
EPS Next Y24.43%
EPS Next 2Y21.11%
EPS Next 3Y20.74%
EPS Next 5Y19.86%
Revenue Next Year15.08%
Revenue Next 2Y12.23%
Revenue Next 3Y12.65%
Revenue Next 5Y12.02%
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 29.69 indicates a quite expensive valuation of ASML.
63.64% of the companies in the same industry are more expensive than ASML, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.35, ASML is valued at the same level.
With a Price/Forward Earnings ratio of 23.28, ASML is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ASML is valued a bit cheaper than the industry average as 60.91% of the companies are valued more expensively.
ASML's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.69 | ||
| Fwd PE | 23.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ASML indicates a somewhat cheap valuation: ASML is cheaper than 61.82% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ASML is valued a bit cheaper than 74.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.49 | ||
| EV/EBITDA | 25.25 |
4.3 Compensation for Growth
ASML's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 20.74% in the coming years.
PEG (NY)1.22
PEG (5Y)1.16
EPS Next 2Y21.11%
EPS Next 3Y20.74%
5. Dividend
5.1 Amount
ASML has a yearly dividend return of 0.98%, which is pretty low.
ASML's Dividend Yield is a higher than the industry average which is at 2.33.
Compared to an average S&P500 Dividend Yield of 2.42, ASML's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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 32.40% of its income as dividend. This is a 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%
756.53
-5.11 (-0.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners50.81%
Inst Owner Change7.62%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap297.94B
Analysts80.48
Price Target901.11 (19.11%)
Short Float %0.74%
Short Ratio1.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend7.18
Dividend Growth(5Y)14.61%
DP32.4%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)0.98%
PT rev (3m)-0.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.69 | ||
| Fwd PE | 23.28 | ||
| P/S | 9.15 | ||
| P/FCF | 28.49 | ||
| P/OCF | 23.17 | ||
| P/B | 14 | ||
| P/tB | 19.5 | ||
| EV/EBITDA | 25.25 |
EPS(TTM)25.48
EY3.37%
EPS(NY)32.49
Fwd EY4.3%
FCF(TTM)26.56
FCFY3.51%
OCF(TTM)32.65
OCFY4.32%
SpS82.64
BVpS54.02
TBVpS38.79
PEG (NY)1.22
PEG (5Y)1.16
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 | 7.03 |
F-Score7
WACC10.69%
ROIC/WACC2.43
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 5Y19.86%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y14.94%
Revenue growth 5Y19.05%
Sales Q2Q%46.34%
Revenue Next Year15.08%
Revenue Next 2Y12.23%
Revenue Next 3Y12.65%
Revenue Next 5Y12.02%
EBIT growth 1Y-5.14%
EBIT growth 3Y9.72%
EBIT growth 5Y27.13%
EBIT Next Year33.08%
EBIT Next 3Y21.81%
EBIT Next 5Y19.74%
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%