ASML Holding (ASML) AI Stock Analysis

• Market Cap: $400.14B
• Dividend Yield: 0.63%
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): 39.7
• Beta (1Y): 1.64
• Revenue Growth: 24.91%
• EPS Growth: 39.95%
• Country: US
• Employees: 43,129
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 6.38
• Shares Outstanding: 388,147,670
• 10 Day Avg. Volume: 1,633,800
• 30 Day Avg. Volume: 1,390,220
• PEG Ratio: -21.94
• Price to Book (P/B): 14.25
• Price to Sales (P/S): 9.31
• P/FCF Ratio: 27.70
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 11.36
• Enterprise Value/Gross Profit: 21.66
• Enterprise Value/Ebitda: 27.62
• 1Y Price Target: $1,104.53
• Price Target Upside: 4.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: $870.00 ▼(-17.92% Downside)

ASML's overall stock score is driven by its strong financial performance and positive earnings call, which highlight robust profitability and strategic growth initiatives. Technical analysis supports a positive momentum, though valuation concerns and potential demand challenges from China are notable risks.

Positive Factors

Strong Financial Performance

ASML's robust financial performance with high sales and margins indicates strong operational efficiency and market demand, supporting long-term growth.

Technological Advancements

Advancements in EUV technology enhance ASML's competitive edge, ensuring it remains a leader in semiconductor manufacturing technology.

Strategic Partnerships

The partnership with Mistral AI strengthens ASML's product offerings, potentially increasing market share and driving future revenue growth.

Negative Factors

Reduced Demand from China

Decreased demand from China could impact ASML's revenue, as China is a significant market for semiconductor equipment.

Free Cash Flow Decline

A decline in free cash flow growth may affect ASML's ability to invest in R&D and expansion, potentially impacting future innovation and competitiveness.

Potential Demand Challenges

Potential demand challenges, particularly from China, could hinder ASML's growth prospects, affecting long-term revenue and market position.

ASML Holding Business Overview & Revenue Model

Company Description

ASML Holding N.V. develops, produces, markets, sells, and services advanced semiconductor equipment systems for chipmakers. It offers advanced semiconductor equipment systems, including lithography, metrology, and inspection systems. The company also provides extreme ultraviolet lithography systems; and deep ultraviolet lithography systems comprising immersion and dry lithography solutions to manufacture various range of semiconductor nodes and technologies. In addition, it offers metrology and inspection systems, including YieldStar optical metrology systems to assess the quality of patterns on the wafers; and HMI electron beam solutions to locate and analyze individual chip defects. Further, the company provides computational lithography solutions, and lithography systems and control software solutions; and refurbishes and upgrades lithography systems, as well as offers customer support and related services. It operates in Japan, South Korea, Singapore, Taiwan, China, rest of Asia, the Netherlands, rest of Europe, the Middle East, Africa, and the United States. The company was formerly known as ASM Lithography Holding N.V. and changed its name to ASML Holding N.V. in 2001. ASML Holding N.V. was founded in 1984 and is headquartered in Veldhoven, the Netherlands.

How the Company Makes Money

ASML generates revenue primarily through the sale of its lithography systems, which are essential for semiconductor fabrication. The company's revenue model consists of two main components: system sales and service revenue. System sales involve the sale of lithography machines to semiconductor manufacturers, which can account for a significant portion of ASML's earnings. Additionally, ASML provides ongoing maintenance and support services, which create a recurring revenue stream. The company also benefits from a strong partnership ecosystem, collaborating with major semiconductor manufacturers like Intel, Samsung, and TSMC, which helps drive demand for its advanced equipment. Moreover, ASML invests heavily in research and development to innovate and improve its product offerings, further solidifying its position as a leader in the industry and contributing to its long-term revenue growth.

ASML Holding Financial Statement Overview

Summary

ASML demonstrates strong financial health with high profitability and growth, supported by efficient operations and a solid equity base. The income statement shows robust margins and revenue growth, while the balance sheet reflects prudent financial leverage. Cash flow remains strong, though monitoring free cash flow trends is advisable.

Income Statement

ASML's income statement shows strong performance with a robust Gross Profit Margin of 52.52% and a Net Profit Margin of 29.27% for TTM, indicating high profitability. The company has demonstrated consistent revenue growth, with a notable 15.1% increase in the TTM period. EBIT and EBITDA margins are also strong at 35.07% and 38.09% respectively, reflecting efficient operations. The positive growth trajectory and high margins highlight ASML's competitive position in the semiconductor industry.

Balance Sheet

ASML's balance sheet is solid, with a low Debt-to-Equity Ratio of 0.21, indicating prudent financial leverage. The Return on Equity is impressive at 53.99% for TTM, showcasing effective use of shareholder funds. The Equity Ratio stands at 42.11%, reflecting a strong equity base. While the company has reduced its debt levels, maintaining this trajectory will be crucial to mitigate any potential risks.

Cash Flow

ASML's cash flow statement reveals a slight decline in Free Cash Flow Growth at -2.63% for TTM, which could be a concern if it continues. However, the Operating Cash Flow to Net Income Ratio is healthy at 1.21, indicating strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio of 0.83 suggests efficient conversion of earnings into cash. Overall, cash flow remains robust, but monitoring free cash flow trends is advisable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.21B	28.26B	27.56B	21.17B	18.61B	13.98B
Gross Profit	16.89B	14.49B	14.14B	10.70B	9.81B	6.80B
EBITDA	13.25B	10.12B	9.98B	7.10B	7.23B	4.55B
Net Income	9.85B	7.57B	7.84B	5.62B	5.88B	3.55B
Balance Sheet
Total Assets	45.10B	48.59B	40.11B	36.00B	30.32B	27.23B
Cash, Cash Equivalents and Short-Term Investments	5.13B	12.74B	7.04B	7.32B	7.61B	7.34B
Total Debt	2.70B	4.99B	4.88B	4.42B	4.76B	4.85B
Total Liabilities	26.10B	30.11B	26.61B	27.26B	20.15B	13.39B
Stockholders Equity	18.99B	18.48B	13.50B	8.74B	10.17B	13.85B
Cash Flow
Free Cash Flow	9.45B	9.50B	3.23B	7.04B	10.37B	3.41B
Operating Cash Flow	11.88B	11.66B	5.35B	8.29B	11.31B	4.31B
Investing Cash Flow	-4.62B	-2.73B	-2.64B	-1.00B	-75.06M	-1.26B
Financing Cash Flow	-6.61B	-2.96B	-2.95B	-6.97B	-10.31B	-700.69M

ASML Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1060.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASML, the sentiment is Positive. The current price of 1060 is above the 20-day moving average (MA) of 1023.72, above the 50-day MA of 1010.28, and above the 200-day MA of 801.42, indicating a bullish trend. The MACD of 4.09 indicates Positive momentum. The RSI at 58.36 is Neutral, neither overbought nor oversold. The STOCH value of 80.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASML.

ASML Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASML	81 Outperform	$400.14B	39.66	51.72%	0.63%	24.91%	39.95%
TSM	81 Outperform	$1.19T	29.87	34.89%	1.00%	39.73%	56.22%
KLAC	79 Outperform	$154.45B	36.90	99.17%	0.63%	22.27%	45.32%
AMAT	77 Outperform	$200.95B	29.13	35.51%	0.71%	4.47%	0.48%
LRCX	77 Outperform	$195.94B	34.37	62.26%	0.59%	25.66%	46.68%
INTC	64 Neutral	$193.47B	3,826.42	0.19%	―	-1.49%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

ASML Holding Corporate Events

ASML Reports Strong Q3 2025 Results with Positive Outlook

ASML Holding NV reported its third-quarter 2025 results with total net sales of €7.5 billion and a net income of €2.1 billion. The company expects a full-year 2025 sales growth of around 15% and a gross margin of approximately 52%. ASML anticipates fourth-quarter sales between €9.2 billion and €9.8 billion. The company has also announced an interim dividend and continued its share buyback program, although it does not expect to complete the current program within the 2022–2025 timeframe. ASML’s advancements in EUV technology and partnerships in AI are expected to enhance its market position, despite anticipated declines in sales to China in 2026.