tiprankstipranks
Trending News
More News >
ASML Holding NV (NL:ASML)
:ASML

ASML Holding NV (ASML) AI Stock Analysis

Compare
123 Followers

Top Page

NL

ASML Holding NV

(LSE:ASML)

Rating:76Outperform
Price Target:
€756.00
▲(10.77%Upside)
ASML's strong financial performance and sound technical indicators underpin its overall stock score. While its valuation suggests a premium price, its robust financial health and operational efficiency position it well. The absence of new earnings call insights or corporate events leaves the score primarily driven by financial and technical factors.
Positive Factors
Market Presence
Notable strength in China bookings supports increased sales projections for this year.
Monopoly Position
ASML is a monopoly in the semiconductor lithography market, with a 100% share in EUV, implying very high bargaining power for the company.
Pricing Strategy
ASML has the pricing power to pass any tariff-related costs onto customers.
Negative Factors
Free Cash Flow
Free cash flow of negative €676mn missed consensus, driven by negative operating cash flow as a result of increased inventories and capex.
Growth Estimates
Underwhelming orders and absence of TSMC in the EUV order book suggest challenges for ASML's growth estimates.
Tariff Risks
Tariff risk remains unknown and poses a potential threat to earnings forecasts.

ASML Holding NV (ASML) vs. iShares MSCI Netherlands ETF (EWN)

ASML Holding NV Business Overview & Revenue Model

Company DescriptionASML 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 MoneyASML generates revenue primarily through the sale of its photolithography systems, which are crucial in the semiconductor manufacturing process. A significant portion of its income comes from the sale of EUV lithography machines, which are essential for producing cutting-edge semiconductor nodes. In addition to equipment sales, ASML earns money from service contracts, providing maintenance and support for its machines. Furthermore, ASML benefits from the sale of software and metrology systems that complement its hardware offerings. The company's revenue is also bolstered by strategic partnerships and collaborations with major semiconductor manufacturers, which help drive innovation and ensure a steady demand for its products.

ASML Holding NV Financial Statement Overview

Summary
ASML Holding NV showcases strong financial health across all verticals, marked by impressive revenue and profit growth, efficient use of equity and low leverage, and excellent cash flow management. The company's financial statements reflect stability, profitability, and prudent financial practices, positioning it well within the competitive semiconductor industry.
Income Statement
92
Very Positive
ASML Holding NV demonstrates strong financial performance with significant revenue growth and profitability. The gross profit margin stands at 52.0% for TTM, reflecting efficient production management. Net profit margin has improved to 28.3% for TTM, indicative of effective cost control and profitability. Revenue growth rate is robust at 8.7% annually, highlighting a positive growth trajectory. EBIT and EBITDA margins for TTM are at 33.8% and 37.4% respectively, underscoring operational efficiency and strong earnings before interest, tax, depreciation, and amortization.
Balance Sheet
85
Very Positive
ASML's balance sheet is stable, with a healthy equity ratio of 38.5% for TTM, indicating a balanced capital structure. The debt-to-equity ratio is low at 0.21, showing conservative leverage practices. Return on equity (ROE) is strong at 49.7% for TTM, demonstrating effective utilization of shareholder funds to generate profits. The company maintains a solid financial position with substantial stockholders' equity.
Cash Flow
90
Very Positive
ASML exhibits excellent cash flow management, with a free cash flow growth rate of 2.0% annually, indicating efficient capital utilization. The operating cash flow to net income ratio for TTM is 1.3, reflecting strong cash generation relative to net income. The free cash flow to net income ratio is 1.1 for TTM, suggesting robust free cash flow relative to profits. These metrics highlight ASML's ability to generate and manage cash effectively.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue30.71B28.26B27.56B21.17B18.61B13.98B
Gross Profit15.98B14.49B14.14B10.70B9.81B6.80B
EBITDA11.50B10.12B9.98B7.10B7.23B4.55B
Net Income8.70B7.57B7.84B5.62B5.88B3.55B
Balance Sheet
Total Assets45.48B48.59B39.96B38.83B30.23B27.27B
Cash, Cash Equivalents and Short-Term Investments9.10B12.74B7.01B7.38B7.59B7.35B
Total Debt3.68B4.69B4.86B4.26B4.08B4.66B
Total Liabilities27.98B30.11B26.51B27.54B20.09B13.40B
Stockholders Equity17.50B18.48B13.45B11.29B10.14B13.87B
Cash Flow
Free Cash Flow9.29B9.10B3.25B7.22B9.91B3.63B
Operating Cash Flow11.36B11.17B5.44B9.43B10.85B4.63B
Investing Cash Flow-2.30B-2.61B-2.69B-1.92B-72.00M-1.35B
Financing Cash Flow-5.06B-2.83B-3.00B-7.19B-9.89B-753.00M

ASML Holding NV Technical Analysis

Technical Analysis Sentiment
Positive
Last Price682.50
Price Trends
50DMA
643.44
Positive
100DMA
652.04
Positive
200DMA
668.51
Positive
Market Momentum
MACD
8.05
Negative
RSI
55.09
Neutral
STOCH
74.17
Neutral
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 682.5 is above the 20-day moving average (MA) of 668.24, above the 50-day MA of 643.44, and above the 200-day MA of 668.51, indicating a bullish trend. The MACD of 8.05 indicates Negative momentum. The RSI at 55.09 is Neutral, neither overbought nor oversold. The STOCH value of 74.17 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
€269.24B31.3655.62%0.93%17.67%22.62%
49
Neutral
C$2.89B2.45-80.91%2.94%6.72%-18.96%
€26.41B54.8513.66%0.48%
€10.43B57.4336.13%1.47%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NL:ASML
ASML Holding NV
682.50
-262.82
-27.80%
GB:0NX3
ASM International NV
544.40
-152.38
-21.87%
GB:0XVE
BE Semiconductor
130.46
-21.78
-14.31%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 24, 2025