ASM International (ASMIY) AI Stock Analysis

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ASM International

(OTC:ASMIY)

Rating:81Outperform

Price Target:

$729.00

▲(14.28%Upside)

ASM International's overall stock score of 81 reflects its strong financial health and positive earnings outlook, supported by robust revenue and margin growth. The technical analysis suggests some caution due to overbought conditions, and the high valuation could pose risks if earnings growth expectations are not met. However, the company's solid balance sheet and cash flow management mitigate these risks, supporting a generally favorable investment outlook.

ASM International (ASMIY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$31.04B

Dividend Yield0.53%

Average Volume (3M)707.00

Price to Earnings (P/E)60.0

Beta (1Y)1.55

Revenue Growth20.95%

EPS Growth-11.46%

CountryUS

Employees4,558

SectorTechnology

Sector Strength88

IndustrySemiconductors

Share Statistics

EPS (TTM)4.42

Shares Outstanding49,328,550

10 Day Avg. Volume0

30 Day Avg. Volume707

Financial Highlights & Ratios

PEG Ratio-1.38

Price to Book (P/B)4.22

Price to Sales (P/S)0.00

P/FCF Ratio34.83

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$561.00

Price Target Upside-12.06% Downside

Rating ConsensusHold

Number of Analyst Covering0

ASM International Business Overview & Revenue Model

Company DescriptionASM International (ASMIY) is a global company specializing in the design, manufacturing, and sale of equipment and process solutions for the semiconductor industry. Headquartered in the Netherlands, ASMIY operates primarily in the wafer processing equipment sector, focusing on advanced deposition technologies. Its core products include atomic layer deposition (ALD) and epitaxy systems, which are crucial for the production of semiconductor devices used in a wide range of electronic products.

How the Company Makes MoneyASM International makes money primarily through the sale of its advanced semiconductor equipment and related services. The company's revenue model revolves around providing cutting-edge deposition solutions to semiconductor manufacturers, who integrate these systems into their production lines to enhance device performance and efficiency. Key revenue streams include the sale of new equipment, spare parts, and service contracts. ASMIY has established significant partnerships with leading semiconductor manufacturers worldwide, which helps drive demand for its technology. The company's earnings are also influenced by the cyclical nature of the semiconductor industry and technological advancements that necessitate new equipment purchases.

ASM International Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q1-2025)

% Change Since: 31.70%|

Next Earnings Date:Jul 22, 2025

Earnings Call Sentiment Neutral

The call highlighted strong revenue growth, improved margins, and increased order intake, indicating a positive business performance. However, concerns were raised about the impairment of ASMPT stake, currency translation losses, and challenges in the power analog wafer segment, alongside global market uncertainties due to tariffs.

Q1-2025 Updates

Positive Updates

Strong Revenue Growth

Revenue in Q1 2025 amounted to €839 million, above the midpoint of the guidance range, representing a 26% increase year-on-year at constant currencies.

Gross Margin Improvement

Gross margin increased to 53.4% in Q1 2025 from 50.3% in Q4 2024 and 52.9% in Q1 2024, driven by a favorable product mix and cost reduction programs.

Growth in Equipment and Service Sales

Equipment sales increased by 25% and spares and service sales rose by 32% at constant currencies.

Solid Free Cash Flow

Free cash flow reached €264 million in Q1 2025, up from €62 million in Q1 2024, supported by improved profitability and reduced working capital.

Increasing Order Intake

New orders increased to €834 million, up 14% at constant currencies compared to the first quarter of last year.

Negative Updates

Impairment of ASMPT Stake

Reported net results in Q1 2025 included an impairment of €215 million on ASMPT stake due to reduced market valuation.

Currency Translation Loss

A currency translation loss of €40 million was recorded, compared to gains in previous quarters.

Decline in Power Analog Wafer Segment

Sales in the power analog wafer segment were down year-on-year and compared to Q4 2024.

Uncertainty in Global Market Conditions

Global uncertainty has increased due to recent tariff announcements, potentially impacting the microeconomic environment.

Company Guidance

During ASM's Q1 2025 earnings call, they reported revenues of €839 million, surpassing their guidance midpoint of €810 million to €850 million, with constant currency revenue increasing 26% year-on-year. Equipment sales rose 25%, driven by Atomic Layer Deposition (ALD) and Epitaxy (Epi), while spares and services grew 32%. Gross margin improved to 53.4%, up from 50.3% in Q4 2024, attributed to a favorable product mix and cost reduction efforts. Operating profit increased by 41% year-on-year, with SG&A expenses decreasing to 9.1% of total revenue. The company maintained a strong cash position of over €1.1 billion, with order intake rising to €834 million, up 14% year-on-year. ASM anticipates 10% to 20% revenue growth for 2025, contingent on opportunities in power analog and HBM DRAM segments materializing.

ASM International Financial Statement Overview

Summary

ASM International demonstrates robust financial health with strong revenue growth, high profitability margins, minimal leverage, and effective cash flow management. The company's financial stability is highlighted by a very low Debt-to-Equity Ratio and strong Return on Equity, positioning it well for future growth.

Income Statement

Very Positive

ASM International shows strong financial performance with increasing revenue and profitability. The Gross Profit Margin stands robust at approximately 50.5% for 2024, reflecting efficient production and pricing strategies. Net Profit Margin is healthy at 23.4%, indicating solid bottom-line profitability. Revenue growth from 2023 to 2024 is notable at 11.3%, showcasing solid business expansion. EBIT and EBITDA Margins are commendable at 27.3% and 33.8%, respectively, highlighting operational efficiency and effective cost management.

Balance Sheet

Very Positive

The company's balance sheet reflects financial stability with a very low Debt-to-Equity Ratio of 0.006, indicating minimal leverage and low financial risk. The Return on Equity (ROE) is a strong 18.3%, showcasing effective use of shareholder capital to generate profits. The Equity Ratio is high at 72.6%, suggesting a solid equity base and low reliance on debt financing.

Cash Flow

Very Positive

ASM International demonstrates strong cash flow management with a Free Cash Flow Growth Rate of 27.4% from 2023 to 2024, indicating robust cash generation capabilities. The Operating Cash Flow to Net Income Ratio of 1.31 reflects efficient conversion of income into cash. The Free Cash Flow to Net Income Ratio is 0.78, demonstrating good cash retention after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.13B	2.93B	2.63B	2.41B	1.73B	1.33B
Gross Profit	1.59B	1.48B	1.27B	1.14B	828.13M	623.57M
EBITDA	1.09B	990.54M	834.57M	846.86M	694.92M	425.11M
Net Income	483.77M	685.73M	752.07M	389.11M	494.71M	285.40M
Balance Sheet
Total Assets	5.14B	5.16B	4.23B	3.75B	2.71B	2.23B
Cash, Cash Equivalents and Short-Term Investments	1.14B	926.00M	637.26M	419.31M	491.51M	435.23M
Total Debt	0.00	35.26M	33.56M	28.12M	23.46M	6.22M
Total Liabilities	1.48B	1.41B	999.92M	1.00B	469.33M	375.21M
Stockholders Equity	3.66B	3.75B	3.23B	2.75B	2.24B	1.85B
Cash Flow
Free Cash Flow	733.79M	532.92M	418.18M	333.01M	223.79M	101.56M
Operating Cash Flow	1.10B	897.65M	735.89M	541.49M	380.64M	264.35M
Investing Cash Flow	-352.30M	-349.97M	-289.04M	-474.88M	-114.40M	-144.31M
Financing Cash Flow	-302.27M	-301.03M	-236.05M	-132.60M	-240.26M	-170.45M

ASM International Technical Analysis

Technical Analysis Sentiment

Positive

Last Price637.93

Price Trends

50DMA

542.04

Positive

100DMA

523.46

Positive

200DMA

553.10

Positive

Market Momentum

MACD

24.32

Negative

RSI

71.68

Negative

STOCH

100.01

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASMIY, the sentiment is Positive. The current price of 637.93 is above the 20-day moving average (MA) of 594.03, above the 50-day MA of 542.04, and above the 200-day MA of 553.10, indicating a bullish trend. The MACD of 24.32 indicates Negative momentum. The RSI at 71.68 is Negative, neither overbought nor oversold. The STOCH value of 100.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASMIY.

ASM International Peers Comparison

Overall Rating

UnderperformOutperform

Sector (56)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASML	81 Outperform	$310.07B	33.52	55.21%	0.96%	16.46%	21.29%
ASMIY	81 Outperform	$31.04B	60.04	13.65%	0.53%	20.95%	-11.46%
AMAT	80 Outperform	$147.03B	22.30	36.37%	1.00%	6.12%	-5.66%
KLAC	80 Outperform	$117.68B	32.34	104.10%	0.84%	20.44%	44.14%
LRCX	80 Outperform	$124.33B	27.08	53.14%	0.95%	20.33%	31.89%
ASX	74 Outperform	$22.40B	21.63	11.47%	0.09%	1.32%	4.86%
Sector *	56 Neutral	$3.16B	4.94	-5.68%	5.95%	7.96%	-51.05%

* Technology Sector Average

Performance Comparison

ASMIY

ASM International

637.93

-111.06

-14.83%

ASX

ASE Technology Holding Co

10.59

-0.51

-4.59%

AMAT

Applied Materials

183.21

-51.98

-22.10%

ASML

ASML Holding

795.95

-229.56

-22.38%

KLAC

KLA

889.87

69.71

8.50%

LRCX

Lam Research

97.20

-7.64

-7.29%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 26, 2025