ASM International NV (ASM) AI Stock Analysis

• Market Cap: €33.61B
• Dividend Yield: 0.58%
• Average Volume (3M): 180.94K
• Price to Earnings (P/E): 35.0
• Beta (1Y): 2.17
• Revenue Growth: 19.12%
• EPS Growth: 42.78%
• Country: NL
• Employees: 4,558
• Sector: General
• Sector Strength: N/A
• Industry: Semiconductors
• EPS (TTM): 3.45
• Shares Outstanding: 49,328,550
• 10 Day Avg. Volume: 169,277
• 30 Day Avg. Volume: 180,945
• PEG Ratio: 6.12
• Price to Book (P/B): 6.33
• Price to Sales (P/S): 7.99
• P/FCF Ratio: 29.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €794.09
• Price Target Upside: 14.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 18.8
• Revenue Forecast (FY): €3.66B

• Rating: 78 Outperform
• Price Target: €817.00 ▲(18.27% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven primarily by strong financial quality—high margins, robust cash generation, and very low leverage—supported by a clear positive technical trend. Offsetting these positives, valuation is relatively expensive (P/E ~35) with a low dividend yield, and recent revenue softness is a key cyclical watch item.

Positive Factors

High profitability margins

ASM's consistently high gross and EBIT margins reflect differentiated deposition technologies (ALD and epitaxy) and pricing power on advanced-node tools. Durable margin structure supports reinvestment in R&D, sustained operating leverage, and long-term earnings resilience even across semiconductor cycles.

Exceptionally conservative balance sheet

Minimal leverage provides durable financial flexibility, lowering default and refinancing risk during downturns. A strong equity base enables continued investment, service expansion, or opportunistic capital allocation without depending on external debt, preserving stability across 2–6 month horizons and beyond.

Strong cash generation and free cash flow

Robust operating cash flow and sizable FCF give ASM durable funding for R&D, aftermarket service scaling, and shareholder returns. Reliable cash generation supports reinvestment into advanced deposition tech and helps smooth capex-driven revenue variability over medium-term semiconductor cycles.

Negative Factors

Revenue cyclicality from capital-equipment model

ASM's core revenue depends on large, timing-sensitive equipment orders tied to fab build-outs and node transitions. This structural dependence makes top-line lumpy and vulnerable to industry capex swings, creating multi-quarter revenue volatility and uncertain order timing despite strong underlying demand trends.

Recent top-line softness

A recent modest revenue decline signals exposure to cyclical demand and could presage weaker aftermarket growth. Even with strong margins, sustained top-line softness reduces leverage benefits, may pressure utilization and service revenues, and heightens the importance of order-book recovery for medium-term growth.

Inconsistent cash conversion and working-capital timing

Variable cash conversion indicates working-capital timing and episodic collection or inventory impacts. That inconsistency can constrain available liquidity for reinvestment during downturns or slow recovery periods, requiring larger cash buffers despite low leverage and possibly slowing strategic initiatives.

ASM International NV Business Overview & Revenue Model

Company Description

ASM International NV, together with its subsidiaries, engages in the research, development, manufacture, marketing, and servicing of equipment and materials that are used to produce semiconductor devices in the United States, Europe, and Asia. Its products include wafer processing deposition systems for single-wafer atomic layer deposition, plasma enhanced chemical vapor deposition, epitaxy, and batch diffusion/furnace systems, as well as provides spare parts and support services. The company also manufactures and sells equipment, which is used in wafer processing, encompassing the fabrication steps in which silicon wafers are layered with semiconductor devices. It serves manufacturers of semiconductor devices and integrated circuits. The company was formerly known as Advanced Semiconductor Materials International NV. ASM International NV was incorporated in 1968 and is headquartered in Almere, the Netherlands.

How the Company Makes Money

ASM generates revenue primarily through the sale of its semiconductor manufacturing equipment and related services. The company’s revenue model is built on selling capital equipment to semiconductor manufacturers, which includes both the initial sale of machinery and ongoing service contracts for maintenance and support. Key revenue streams come from new equipment sales, spare parts, and service agreements. Additionally, ASM benefits from technology partnerships and collaborations with major semiconductor companies, which can lead to joint development projects and increased orders. The growing demand for advanced semiconductor technologies, driven by trends like the Internet of Things (IoT), artificial intelligence (AI), and 5G, also significantly contributes to ASM's earnings.

ASM International NV Financial Statement Overview

Summary

Strong profitability and earnings power (gross margin ~47%–52%, 2025 EBIT margin ~30%) with an exceptionally conservative balance sheet (minimal leverage; 2025 debt-to-equity ~0.016). Cash generation is solid (2025 FCF ~0.85B), but cash conversion can be uneven and the latest year shows a modest revenue decline (-3.368), reflecting cyclical pressure.

Income Statement

Profitability is a clear strength, with consistently strong gross margins (~47%–52%) and healthy net margins (~16%–29%) over the period. Revenue scaled meaningfully from 2020 to 2025, but the latest annual period shows a modest revenue decline (2025: -3.368), pointing to some cyclical pressure. Overall earnings power remains solid (2025 EBIT margin ~30%), but the recent top-line slowdown is the key watch item.

Balance Sheet

The balance sheet is exceptionally conservative: debt is minimal (2025 debt-to-equity ~0.016) alongside a large equity base, providing strong resilience through semiconductor cycles. Returns on equity are attractive (~14%–23% across years; ~18% in 2025), indicating good capital efficiency without relying on leverage. Main weakness is limited—metrics provided do not flag balance-sheet strain.

Cash Flow

Cash generation is strong and improving in absolute terms, with 2025 operating cash flow ~1.07B and free cash flow ~0.85B, plus positive free cash flow growth in the latest year. That said, cash conversion vs. earnings is not consistently high (free cash flow to net income generally ~0.57–0.80; 2025 ~0.80), and operating cash flow relative to net income has dipped below 1x in some years (notably 2024), suggesting periodic working-capital or timing impacts.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.17B	2.93B	2.63B	2.41B	1.73B
Gross Profit	1.64B	1.48B	1.27B	1.14B	828.13M
EBITDA	1.20B	990.54M	1.03B	529.29M	593.38M
Net Income	723.70M	685.73M	752.07M	389.11M	494.71M
Balance Sheet
Total Assets	5.34B	5.16B	4.23B	3.75B	2.71B
Cash, Cash Equivalents and Short-Term Investments	1.03B	926.50M	637.26M	419.31M	491.51M
Total Debt	64.00M	35.26M	33.56M	28.12M	23.46M
Total Liabilities	1.33B	1.41B	999.92M	1.00B	469.33M
Stockholders Equity	4.01B	3.75B	3.23B	2.75B	2.24B
Cash Flow
Free Cash Flow	849.10M	532.92M	418.18M	333.01M	223.79M
Operating Cash Flow	1.07B	897.65M	735.89M	541.49M	380.64M
Investing Cash Flow	-633.60M	-349.97M	-289.04M	-474.88M	-114.40M
Financing Cash Flow	-313.50M	-301.03M	-236.05M	-132.60M	-240.26M

ASM International NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 690.80
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:ASM, the sentiment is Positive. The current price of 690.8 is below the 20-day moving average (MA) of 702.49, below the 50-day MA of 691.31, and above the 200-day MA of 545.72, indicating a neutral trend. The MACD of 0.95 indicates Positive momentum. The RSI at 49.29 is Neutral, neither overbought nor oversold. The STOCH value of 52.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:ASM.

ASM International NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASML	81 Outperform	€454.94B	37.25	52.14%	0.73%	22.77%	37.62%
ASM	78 Outperform	€33.61B	35.05	19.21%	0.58%	19.12%	42.78%
BESI	59 Neutral	€15.53B	61.66	35.84%	1.65%	-5.75%	-17.63%
TWEKA	59 Neutral	€1.54B	15.43	11.04%	4.11%	-3.59%	-46.68%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%