ASML Holding N.V.
ASML Holding N.V. Fundamental Analysis
ASML Holding N.V. (ASML) shows moderate financial fundamentals with a PE ratio of 45.99, profit margin of 29.42%, and ROE of 52.14%. The company generates $32.6B in annual revenue with weak year-over-year growth of 2.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 77.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ASML's fundamental strength across five key dimensions:
Efficiency Score
ExcellentASML demonstrates superior asset utilization.
Valuation Score
WeakASML trades at a premium to fair value.
Growth Score
WeakASML faces weak or negative growth trends.
Financial Health Score
ExcellentASML maintains a strong and stable balance sheet.
Profitability Score
ExcellentASML achieves industry-leading margins.
Key Financial Metrics
Is ASML Expensive or Cheap?
P/E Ratio
ASML trades at 45.99 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ASML's PEG of 42.88 indicates potential overvaluation.
Price to Book
The market values ASML Holding N.V. at 22.54 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 35.93 times EBITDA. This signals the market has high growth expectations.
How Well Does ASML Make Money?
Net Profit Margin
For every $100 in sales, ASML Holding N.V. keeps $29.42 as profit after all expenses.
Operating Margin
Core operations generate 34.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $52.14 in profit for every $100 of shareholder equity.
ROA
ASML Holding N.V. generates $19.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ASML Holding N.V. generates strong operating cash flow of $12.82B, reflecting robust business health.
Free Cash Flow
ASML Holding N.V. generates strong free cash flow of $10.70B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $27.77 in free cash annually.
FCF Yield
ASML converts 2.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
45.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
42.88
vs 25 benchmark
P/B Ratio
Price to book value ratio
22.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
13.49
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.52
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.43
vs 25 benchmark
How ASML Stacks Against Its Sector Peers
| Metric | ASML Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 45.99 | 33.94 | Worse (Expensive) |
| ROE | 52.14% | 1002.00% | Weak |
| Net Margin | 29.42% | -48794.00% (disorted) | Strong |
| Debt/Equity | 0.14 | 0.44 | Strong (Low Leverage) |
| Current Ratio | 1.26 | 5.74 | Neutral |
| ROA | 19.01% | -288341.00% (disorted) | Strong |
ASML outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ASML Holding N.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
155.83%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
212.50%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
226.86%
Industry Style: Growth, Innovation, High Beta
High Growth