ASM International NV (ASM) AI Stock Analysis

• Market Cap: €27.25B
• 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: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 4.20
• Shares Outstanding: 49,328,550
• 10 Day Avg. Volume: 169,277
• 30 Day Avg. Volume: 180,945
• PEG Ratio: -4.76
• Price to Book (P/B): 7.36
• Price to Sales (P/S): 9.41
• P/FCF Ratio: 51.77
• 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: €593.23
• Price Target Upside: 14.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: €617.00 ▲(19.53% Upside)

ASM International NV's strong financial performance and positive technical indicators are the primary drivers of its stock score. The robust revenue growth and profitability metrics, along with a solid balance sheet, provide a strong foundation. However, the high P/E ratio and low dividend yield suggest potential overvaluation and limited income potential, slightly tempering the overall score.

Positive Factors

Revenue Growth

The robust revenue growth indicates strong demand in the semiconductor industry, enhancing ASM's market position and potential for future expansion.

Balance Sheet Health

Minimal leverage and financial risk provide ASM with the flexibility to invest in growth opportunities and withstand market fluctuations.

Profitability Metrics

Strong profitability metrics reflect efficient operations and pricing power, supporting sustainable earnings and competitive advantage.

Negative Factors

Free Cash Flow Growth Deceleration

Slowing free cash flow growth could limit ASM's ability to fund new projects and return capital to shareholders, impacting long-term financial flexibility.

Net Profit Margin Pressure

Decreasing net profit margins suggest rising costs or pricing pressures, which could affect future profitability and competitive positioning.

Free Cash Flow Conversion

A lower free cash flow conversion rate indicates challenges in converting earnings into cash, potentially impacting liquidity and investment capacity.

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

ASM International NV is performing well across all financial verticals, with strong revenue growth, profitability, and a robust balance sheet. The company effectively manages its financial resources, maintaining low leverage and generating healthy cash flows. While there are minor fluctuations in net income, the overall financial health remains strong, positioning the company well for future growth in the semiconductor industry.

Income Statement

ASM International NV demonstrates strong financial performance with consistent revenue growth, highlighted by a 4.13% increase in TTM. The company maintains robust profitability with a gross profit margin of 51.27% and a net profit margin of 16.16% in TTM. EBIT and EBITDA margins are also healthy at 29.27% and 36.25% respectively, indicating efficient cost management. However, the slight decline in net income from the previous year suggests a need for monitoring potential cost pressures.

Balance Sheet

The balance sheet of ASM International NV is solid, characterized by a low debt-to-equity ratio of 0.01, reflecting minimal leverage and financial risk. The return on equity stands at 14.64% in TTM, showcasing effective utilization of shareholder funds. The equity ratio of 70.83% indicates a strong capital structure with significant equity financing. Overall, the company maintains a stable financial position with low risk.

Cash Flow

ASM International NV exhibits positive cash flow trends with a free cash flow growth rate of 2.78% in TTM. The operating cash flow to net income ratio is 0.93, indicating strong cash generation relative to earnings. The free cash flow to net income ratio of 0.66 suggests effective conversion of profits into cash. Despite these strengths, the company should continue to focus on enhancing free cash flow to support future growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.28B	2.93B	2.63B	2.41B	1.73B	1.33B
Gross Profit	1.70B	1.48B	1.27B	1.14B	828.13M	623.57M
EBITDA	1.44B	990.54M	1.03B	529.29M	593.38M	361.84M
Net Income	783.46M	685.73M	752.07M	389.11M	494.71M	285.40M
Balance Sheet
Total Assets	5.25B	5.16B	4.23B	3.75B	2.71B	2.23B
Cash, Cash Equivalents and Short-Term Investments	1.08B	926.50M	637.26M	419.31M	491.51M	435.23M
Total Debt	57.30M	35.26M	33.56M	28.12M	23.46M	6.22M
Total Liabilities	1.41B	1.41B	999.92M	1.00B	469.33M	375.21M
Stockholders Equity	3.84B	3.75B	3.23B	2.75B	2.24B	1.85B
Cash Flow
Free Cash Flow	809.87M	532.92M	418.18M	333.01M	223.79M	101.56M
Operating Cash Flow	1.17B	897.65M	735.89M	541.49M	380.64M	264.35M
Investing Cash Flow	-496.32M	-349.97M	-289.04M	-474.88M	-114.40M	-144.31M
Financing Cash Flow	-313.73M	-301.03M	-236.05M	-132.60M	-240.26M	-170.45M

ASM International NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 516.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 516.2 is above the 20-day moving average (MA) of 500.67, below the 50-day MA of 526.91, and above the 200-day MA of 476.01, indicating a neutral trend. The MACD of 5.22 indicates Negative momentum. The RSI at 50.51 is Neutral, neither overbought nor oversold. The STOCH value of 71.44 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	76 Outperform	€365.67B	39.75	53.85%	0.71%	22.77%	37.62%
ASM	75 Outperform	€27.25B	35.02	21.56%	0.58%	19.12%	42.78%
TWEKA	71 Outperform	€1.55B	24.38	7.75%	4.01%	-3.59%	-46.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BESI	53 Neutral	€11.51B	76.27	35.84%	1.65%	-5.75%	-17.63%