ASML Holding (ASML) AI Stock Analysis

• Market Cap: $287.83B
• Dividend Yield: 0.9%
• Average Volume (3M): 2.10M
• Price to Earnings (P/E): 28.4
• Beta (1Y): 1.45
• Revenue Growth: 27.09%
• EPS Growth: 40.94%
• Country: US
• Employees: 43,129
• Sector: Technology
• Sector Strength: 94
• Industry: Semiconductors
• EPS (TTM): 6.84
• Shares Outstanding: 393,830,700
• 10 Day Avg. Volume: 1,484,215
• 30 Day Avg. Volume: 2,097,893
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 9.55
• Enterprise Value/Gross Profit: 18.18
• Enterprise Value/Ebitda: 24.81
• 1Y Price Target: $863.29
• Price Target Upside: 14.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 82 Outperform
• Price Target: $860.00 ▲(13.88% Upside)

ASML's strong financial performance and positive earnings call outlook are the primary drivers of its high stock score. Despite a premium valuation and mixed technical signals, the company's robust growth prospects, particularly in AI and EUV technology, support a favorable investment outlook. However, geopolitical uncertainties and tariff risks warrant caution.

Positive Factors

Bookings

Bookings exceeded expectations, driven by strong demand from China.

Revenue Outlook

ASML has updated its 2025 revenue outlook to reflect a 15% year-over-year growth.

Negative Factors

Gross Margin

The gross margin for the fourth quarter of 2025 is expected to be below analyst expectations.

Growth Uncertainty

There is increasing uncertainty about growth in 2026 due to macroeconomic and geopolitical factors.

Tariff Uncertainty

Tariff uncertainty remains a key unknown variable with risk of demand destruction.

ASML Holding Business Overview & Revenue Model

Company Description

ASML Holding N.V. is a Dutch company and currently the largest supplier in the world of photolithography systems for the semiconductor industry. Founded in 1984, ASML operates in the technology sector, focusing on the production of advanced machinery used in the manufacturing of integrated circuits (ICs). The company is best known for its extreme ultraviolet (EUV) lithography systems, which are critical for producing smaller, more powerful microchips. ASML's core products and services include lithography equipment, maintenance services, and software solutions that enhance the efficiency of semiconductor manufacturing processes.

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 exhibits strong financial performance with robust profitability margins, effective leverage management, and solid cash flow generation. The income statement is particularly strong, with high margins and consistent revenue growth. The balance sheet reflects solid financial health, though there is room for improvement in asset utilization. Overall, ASML's financials support its growth prospects in the semiconductor industry.

Income Statement

ASML's income statement shows robust performance with a gross profit margin of 52.0% and a net profit margin of 28.3% for TTM. The company has demonstrated consistent revenue growth, with a 10.1% increase in the recent annual period. EBIT and EBITDA margins are strong at 33.8% and 36.8%, respectively, indicating efficient operations and strong profitability.

Balance Sheet

The balance sheet reflects solid financial health, with a debt-to-equity ratio of 0.21, indicating moderate leverage. The return on equity (ROE) is high at 49.7%, showcasing effective management of shareholder funds. With an equity ratio of 38.5%, ASML maintains a stable capital structure, though there is room for improvement in asset utilization.

Cash Flow

ASML has a healthy cash flow position, with an operating cash flow to net income ratio of 1.31, suggesting strong cash generation relative to net income. The free cash flow to net income ratio stands at 1.07, indicating efficient capital expenditure management and positive cash flow growth of 2.2% over the previous period.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.26B	27.56B	21.17B	18.61B	13.98B
Gross Profit	14.49B	14.14B	10.70B	9.81B	6.80B
EBITDA	10.12B	9.98B	7.10B	7.23B	4.55B
Net Income	7.57B	7.84B	5.62B	5.88B	3.55B
Balance Sheet
Total Assets	48.59B	39.96B	38.83B	30.23B	27.27B
Cash, Cash Equivalents and Short-Term Investments	12.74B	7.01B	7.38B	7.59B	7.35B
Total Debt	4.99B	4.86B	4.26B	4.08B	4.66B
Total Liabilities	30.11B	26.51B	27.54B	20.09B	13.40B
Stockholders Equity	18.48B	13.45B	11.29B	10.14B	13.87B
Cash Flow
Free Cash Flow	9.10B	3.25B	7.22B	9.91B	3.63B
Operating Cash Flow	11.17B	5.44B	9.43B	10.85B	4.63B
Investing Cash Flow	-2.61B	-2.69B	-1.92B	-72.00M	-1.35B
Financing Cash Flow	-2.83B	-3.00B	-7.19B	-9.89B	-753.00M

ASML Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 755.21
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 755.21 is above the 20-day moving average (MA) of 717.29, below the 50-day MA of 755.58, and above the 200-day MA of 716.48, indicating a neutral trend. The MACD of -4.59 indicates Negative momentum. The RSI at 57.37 is Neutral, neither overbought nor oversold. The STOCH value of 98.02 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	82 Outperform	$287.83B	28.40	56.14%	0.90%	27.09%	40.94%
AMAT	82 Outperform	$151.06B	22.91	36.37%	0.88%	6.12%	-5.66%
KLAC	82 Outperform	$126.08B	31.46	100.78%	0.71%	24.04%	49.69%
LRCX	82 Outperform	$133.24B	25.35	58.24%	0.86%	23.68%	43.16%
TSM	77 Outperform	$1.02T	27.81	33.29%	1.12%	38.65%	―
Sector *	61 Neutral	$36.28B	7.09	-7.27%	1.97%	7.76%	-8.56%
INTC	52 Neutral	$104.44B	―	-19.24%	2.10%	-3.72%	-2120.70%