ASML Holding NV (ASML) AI Stock Analysis

• Market Cap: €341.65B
• Dividend Yield: 0.72%
• Average Volume (3M): 779.56K
• Price to Earnings (P/E): 36.9
• Beta (1Y): 2.24
• Revenue Growth: 22.77%
• EPS Growth: 37.62%
• Country: NL
• Employees: 43,129
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 5.49
• Shares Outstanding: 388,147,670
• 10 Day Avg. Volume: 839,276
• 30 Day Avg. Volume: 779,560
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €953.84
• Price Target Upside: 5.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

• Rating: 78 Outperform
• Price Target: €992.00 ▲(9.24% Upside)

ASML Holding NV receives a strong overall score driven by excellent financial performance and positive technical indicators. The high valuation reflects market confidence in its growth potential, though it may pose a risk if growth expectations are not met.

Positive Factors

Revenue Growth

ASML's projected 15% increase in net sales for 2025 indicates strong demand for its products, reflecting robust market position and growth potential in the semiconductor industry.

Technological Leadership

ASML's advancements in EUV technology reinforce its leadership in semiconductor manufacturing, ensuring competitive advantage and sustained demand for its cutting-edge lithography equipment.

Management Quality

With over 25 years at ASML, Marco Pieters' appointment as CTO strengthens leadership, leveraging his experience to drive innovation and strategic growth in the company's technology portfolio.

Negative Factors

China Market Weakness

A significant decline in demand from China in 2026 could impact ASML's sales, as China has been a major market. This poses a risk to revenue growth and market expansion efforts.

R&D and SG&A Costs

High R&D and SG&A costs may pressure margins despite revenue growth. Sustained investment is crucial for innovation but may limit short-term profitability.

Gross Margin Pressure

ASML's narrowed gross margin guidance suggests potential cost pressures or pricing challenges, which could affect long-term profitability if not managed effectively.

ASML Holding NV Business Overview & Revenue Model

Company Description

ASML Holding N.V. develops, produces, markets, sells, and services advanced semiconductor equipment systems consisting of lithography, metrology, and inspection related systems for memory and logic chipmakers. The company 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. It also offers metrology and inspection systems, including YieldStar optical metrology solutions to measure the quality of patterns on the wafers; and HMI e-beam solutions to locate and analyze individual chip defects. In addition, the company provides computational lithography and software solutions to create applications that enhance the setup of the lithography system; and mature products and services that refurbish used lithography equipment and offers associated services. It operates in Japan, South Korea, Singapore, Taiwan, China, the Netherlands, Europe, the United States, and rest of Asia. 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 and related services. The company has a tiered revenue model that includes equipment sales, service contracts, and maintenance agreements. The sale of high-end EUV machines constitutes a significant portion of ASML's revenue, given their complexity and the value they bring to semiconductor manufacturers in producing cutting-edge chips. Additionally, ASML earns recurring revenue from service and maintenance agreements, which involve providing technical support and upgrades to existing customers. The company has established strong partnerships with major players in the semiconductor industry, such as Intel, TSMC, and Samsung, which not only drive sales of new machines but also ensure ongoing revenue through service contracts. Factors contributing to ASML's earnings include the increasing demand for advanced semiconductor technology, the trend towards miniaturization in electronics, and ongoing innovations in lithography technology.

ASML Holding NV Financial Statement Overview

Summary

ASML Holding NV demonstrates strong financial performance with high profitability, solid revenue growth, and efficient cost management. The balance sheet is robust with low debt and high ROE, while cash flow generation supports future growth.

Income Statement

ASML Holding NV demonstrates strong revenue growth and profitability. The Gross Profit Margin remains high at 52.5% TTM, and the Net Profit Margin is robust at 29.3% TTM, indicating efficient cost management. Revenue Growth Rate for the TTM stands at 13.8%, highlighting strong demand and market position. The EBIT and EBITDA margins are also strong at 34.8% and 38.5% respectively, reflecting effective operational leverage.

Balance Sheet

The company maintains a solid financial position with a Debt-to-Equity Ratio of 0.21 TTM, indicating prudent use of leverage. Return on Equity (ROE) is impressive at 53.4% TTM, showcasing high profitability relative to shareholder equity. The Equity Ratio is 39.3% TTM, suggesting a stable capital structure, though there is room for improvement in equity proportion.

Cash Flow

ASML's cash flow generation is robust, with a Free Cash Flow Growth Rate of 1.5% TTM, supported by strong operational cash flows. The Operating Cash Flow to Net Income Ratio is 1.19 TTM, indicating efficient cash conversion. However, the Free Cash Flow to Net Income Ratio is slightly lower at 0.98 TTM, pointing to moderate capital expenditure levels.

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	14.08B	13.84B	10.47B	9.65B	6.63B
EBITDA	10.18B	10.02B	7.16B	7.21B	4.54B
Net Income	7.57B	7.84B	5.62B	5.88B	3.55B
Balance Sheet
Total Assets	48.59B	39.96B	36.30B	30.23B	27.27B
Cash, Cash Equivalents and Short-Term Investments	12.74B	7.01B	7.38B	7.59B	7.35B
Total Debt	4.69B	4.63B	4.26B	4.58B	4.68B
Total Liabilities	30.11B	26.51B	27.49B	20.09B	13.40B
Stockholders Equity	18.48B	13.45B	8.81B	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	8.49B	10.85B	4.63B
Investing Cash Flow	-2.61B	-2.69B	-1.03B	-72.00M	-1.35B
Financing Cash Flow	-2.83B	-3.00B	-7.14B	-9.89B	-753.00M

ASML Holding NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 908.10
• 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 NL:ASML, the sentiment is Positive. The current price of 908.1 is above the 20-day moving average (MA) of 869.03, above the 50-day MA of 769.36, and above the 200-day MA of 681.84, indicating a bullish trend. The MACD of 33.52 indicates Positive momentum. The RSI at 67.84 is Neutral, neither overbought nor oversold. The STOCH value of 87.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:ASML.

ASML Holding NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASML	―	€341.65B	36.90	53.85%	0.72%	22.77%	37.62%
ASM	―	€26.64B	49.81	15.11%	0.53%	25.46%	-4.36%
BESI	―	€11.87B	78.68	35.84%	1.47%	-5.75%	-17.63%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%