ASML Holding NV (ASML) AI Stock Analysis

• Market Cap: €365.67B
• Dividend Yield: 0.68%
• Average Volume (3M): 779.56K
• Price to Earnings (P/E): 39.7
• Beta (1Y): 2.25
• 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: -10.64
• Price to Book (P/B): 14.45
• Price to Sales (P/S): 9.44
• P/FCF Ratio: 29.34
• 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: €984.90
• Price Target Upside: 2.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: €996.00 ▲(3.41% Upside)

ASML Holding NV's strong financial performance is the primary driver of its overall stock score, supported by robust revenue and profit growth and a solid balance sheet. Technical analysis indicates mixed momentum, with potential undervaluation. The high P/E ratio suggests the stock is expensive, which slightly offsets the overall score.

Positive Factors

Revenue Growth

ASML's strong revenue growth reflects robust demand in the semiconductor industry, supporting long-term business expansion and market leadership.

Competitive Advantage

ASML's leadership in photolithography systems provides a significant competitive edge, ensuring continued dominance in the semiconductor equipment market.

Profitability

High profitability margins indicate efficient operations and strong market positioning, contributing to sustained financial health and shareholder value.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth may impact ASML's ability to invest in future growth opportunities and maintain financial flexibility.

Debt Increase

Rising debt levels, although manageable, could pose a risk if they continue to increase, potentially affecting financial stability and leverage.

Free Cash Flow Management

While cash flow management is strong, the free cash flow to net income ratio suggests potential challenges in converting profits into cash, warranting close monitoring.

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 primarily generates revenue through the sale of its photolithography equipment, particularly its EUV and deep ultraviolet (DUV) lithography systems. The company’s revenue model is built on both product sales and service agreements, which include maintenance and upgrades for its machines. A significant portion of ASML's earnings comes from long-term contracts with major semiconductor manufacturers, such as Intel, Samsung, and TSMC, which require advanced lithography technology to meet their production needs. Additionally, ASML benefits from a recurring revenue stream through the sale of spare parts and software updates for its systems. The company also invests heavily in research and development to maintain its technological edge, which is critical in the highly competitive semiconductor industry.

ASML Holding NV Financial Statement Overview

Summary

ASML Holding NV exhibits strong financial health with robust revenue and profit growth, efficient operations, and a solid balance sheet. The income statement shows high profitability and growth, while the balance sheet reflects financial stability. Cash flow management is strong, though the decline in free cash flow growth should be monitored.

Income Statement

ASML Holding NV demonstrates strong financial performance with a consistent upward trajectory in revenue and profitability. The TTM data shows a robust gross profit margin of 52.52% and a net profit margin of 29.27%, indicating efficient cost management and strong profitability. The revenue growth rate of 15.1% in the TTM period reflects solid growth, supported by increasing demand in the semiconductor industry. EBIT and EBITDA margins are also healthy at 35.07% and 38.09%, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet of ASML Holding NV is stable with a manageable debt-to-equity ratio of 0.21, indicating prudent financial leverage. The return on equity (ROE) is impressive at 53.99%, reflecting high profitability relative to shareholder investments. The equity ratio stands at 42.11%, suggesting a strong equity base relative to total assets, which enhances financial stability. However, the slight increase in total debt over the periods should be monitored.

Cash Flow

ASML's cash flow position is solid, with an operating cash flow to net income ratio of 0.60, indicating good cash generation relative to net income. The free cash flow to net income ratio is 0.83, showing effective conversion of profits into cash. However, the free cash flow growth rate has declined by 3.14% in the TTM period, which could be a concern if it continues. Overall, cash flow management remains strong, but attention to free cash flow trends is advisable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	79.46B	28.26B	27.56B	21.17B	18.61B	13.98B
Gross Profit	41.72B	14.08B	13.84B	10.47B	9.65B	6.63B
EBITDA	30.12B	10.18B	10.02B	7.16B	7.21B	4.54B
Net Income	23.18B	7.57B	7.84B	5.62B	5.88B	3.55B
Balance Sheet
Total Assets	45.10B	48.59B	39.96B	36.30B	30.23B	27.27B
Cash, Cash Equivalents and Short-Term Investments	5.13B	12.74B	7.01B	7.38B	7.59B	7.35B
Total Debt	2.70B	4.69B	4.63B	4.26B	4.58B	4.68B
Total Liabilities	26.10B	30.11B	26.51B	27.49B	20.09B	13.40B
Stockholders Equity	18.99B	18.48B	13.45B	8.81B	10.14B	13.87B
Cash Flow
Free Cash Flow	18.42B	9.08B	3.25B	7.22B	9.91B	3.63B
Operating Cash Flow	23.90B	11.17B	5.44B	8.49B	10.85B	4.63B
Investing Cash Flow	-12.98B	-2.61B	-2.69B	-1.03B	-72.00M	-1.35B
Financing Cash Flow	-14.81B	-2.83B	-3.00B	-7.14B	-9.89B	-753.00M

ASML Holding NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 963.20
• 50DMA: Positive
• 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 NL:ASML, the sentiment is Positive. The current price of 963.2 is above the 20-day moving average (MA) of 900.85, above the 50-day MA of 889.07, and above the 200-day MA of 709.98, indicating a bullish trend. The MACD of 21.72 indicates Negative momentum. The RSI at 65.19 is Neutral, neither overbought nor oversold. The STOCH value of 84.50 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	76 Outperform	€365.67B	39.75	53.85%	0.68%	22.77%	37.62%
ASM	63 Neutral	€27.25B	35.02	21.56%	0.54%	19.12%	42.78%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BESI	53 Neutral	€11.51B	76.27	35.84%	1.48%	-5.75%	-17.63%