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ASML Holding NV (NL:ASML)
:ASML
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ASML Holding NV (ASML) AI Stock Analysis

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NL

ASML Holding NV

(LSE:ASML)

Rating:72Outperform
Price Target:
€720.00
▲(10.74%Upside)
ASML's strong financial performance is the most significant driver of its score, reflecting robust profitability and cash flow management. The technical analysis presents mixed signals, with potential undervaluation indicated by the RSI. The valuation suggests some overvaluation risk, but it is offset by a reasonable dividend yield.
Positive Factors
Bookings
ASML reported 2Q25 order intake of €5.5bn, ahead of consensus €4.4bn, driven by material logic and EUV demand.
China Revenue
China revenue is maintained at over 25% of total revenue for the year, with stronger revenue expected in the second half.
Earnings
ASML reported June '25 Q Rev/GM/EPS of €7.7B/ 53.7%/ €5.90, respectively, above consensus' prior €7.5B/51.2%/€5.23 estimates on rev rec for a High-NA tool and better equipment upgrades.
Negative Factors
2026 Guidance
2026 guidance language was more uncertain given tariff uncertainties.
End Market Support
The lack of support from end markets like PC and smartphone means that a strong capex increase spend at TSMC like in FY22 is not expected.
Growth Uncertainty
Lack of growth clarity puts the stock in the penalty box NT.

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 primarily generates revenue through the sale of its photolithography systems to semiconductor manufacturers. The company's EUV lithography systems are a significant source of income due to their advanced capabilities and high demand in the production of cutting-edge semiconductor devices. ASML also earns revenue from service contracts and the sale of software and metrology systems that complement its lithography equipment. Additionally, ASML benefits from partnerships with major semiconductor firms, which sometimes involve collaborative research and development efforts. These partnerships not only enhance ASML's technological capabilities but also solidify its market presence by aligning its products with the needs of top-tier chipmakers.

ASML Holding NV Financial Statement Overview

Summary
ASML Holding NV showcases strong financial health with impressive revenue and profit growth. It has efficient use of equity, low leverage, and excellent cash flow management. These factors highlight its stability and profitability within the 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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue28.26B27.56B21.17B18.61B13.98B
Gross Profit14.49B14.14B10.70B9.81B6.80B
EBITDA10.12B9.98B7.10B7.23B4.55B
Net Income7.57B7.84B5.62B5.88B3.55B
Balance Sheet
Total Assets48.59B39.96B38.83B30.23B27.27B
Cash, Cash Equivalents and Short-Term Investments12.74B7.01B7.38B7.59B7.35B
Total Debt4.99B4.86B4.26B4.08B4.66B
Total Liabilities30.11B26.51B27.54B20.09B13.40B
Stockholders Equity18.48B13.45B11.29B10.14B13.87B
Cash Flow
Free Cash Flow9.10B3.25B7.22B9.91B3.63B
Operating Cash Flow11.17B5.44B9.43B10.85B4.63B
Investing Cash Flow-2.61B-2.69B-1.92B-72.00M-1.35B
Financing Cash Flow-2.83B-3.00B-7.19B-9.89B-753.00M

ASML Holding NV Technical Analysis

Technical Analysis Sentiment
Negative
Last Price650.20
Price Trends
50DMA
668.57
Negative
100DMA
645.98
Positive
200DMA
664.11
Negative
Market Momentum
MACD
0.34
Positive
RSI
44.79
Neutral
STOCH
41.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:ASML, the sentiment is Negative. The current price of 650.2 is below the 20-day moving average (MA) of 674.92, below the 50-day MA of 668.57, and below the 200-day MA of 664.11, indicating a bearish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 44.79 is Neutral, neither overbought nor oversold. The STOCH value of 41.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:ASML.

ASML Holding NV Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
€242.60B27.0658.25%1.18%26.41%40.19%
63
Neutral
$34.26B5.42-11.67%1.85%5.30%-18.55%
€24.52B52.9613.66%0.59%
€9.68B55.0536.13%1.82%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NL:ASML
ASML Holding NV
633.50
-188.19
-22.90%
GB:0NX3
ASM International NV
520.00
-136.71
-20.82%
GB:0XVE
BE Semiconductor
128.53
-16.43
-11.33%
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: Jul 18, 2025