ASML Holding NV (ASML) AI Stock Analysis

• Market Cap: €333.89B
• Dividend Yield: 0.75%
• Average Volume (3M): 779.56K
• Price to Earnings (P/E): 36.1
• Beta (1Y): 2.23
• 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: €966.15
• Price Target Upside: 10.53% 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 ▲(13.95% 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 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 health with high profitability margins and robust revenue growth. The balance sheet is solid with low leverage 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.21B	28.26B	27.56B	21.17B	18.61B	13.98B
Gross Profit	16.98B	14.08B	13.84B	10.47B	9.65B	6.63B
EBITDA	12.32B	10.18B	10.02B	7.16B	7.21B	4.54B
Net Income	9.46B	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	8.97B	9.08B	3.25B	7.22B	9.91B	3.63B
Operating Cash Flow	11.39B	11.17B	5.44B	8.49B	10.85B	4.63B
Investing Cash Flow	-4.56B	-2.61B	-2.69B	-1.03B	-72.00M	-1.35B
Financing Cash Flow	-6.66B	-2.83B	-3.00B	-7.14B	-9.89B	-753.00M

ASML Holding NV Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 874.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:ASML, the sentiment is Neutral. The current price of 874.1 is below the 20-day moving average (MA) of 898.01, above the 50-day MA of 840.81, and above the 200-day MA of 694.42, indicating a neutral trend. The MACD of 11.46 indicates Positive momentum. The RSI at 49.07 is Neutral, neither overbought nor oversold. The STOCH value of 29.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€333.89B	36.07	53.85%	0.75%	22.77%	37.62%
ASM	74 Outperform	€27.25B	35.02	21.56%	0.59%	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%	1.66%	-5.75%	-17.63%