ASML logged a -8.1% change during today's afternoon session, and is now trading at a price of $756.76 per share.
ASML returned losses of -24.5% last year, with its stock price reaching a high of $1077.05 and a low of $578.51. Over the same period, the stock underperformed the S&P 500 index by -35.1%. AThe company's 50-day average price was $759.5. ASML Holding N.V. provides lithography solutions for the development, production, marketing, sales, upgrading, and servicing of advanced semiconductor equipment systems. Based in Veldhoven, Netherlands, the Large-Cap Technology company has 43,129 full time employees. ASML has offered a 0.6% dividend yield over the last 12 months.
Wider Gross Margins Than the Industry Average of 36.97%:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $11,820 | $13,978 | $18,611 | $21,173 | $27,558 | $28,263 |
| Gross Margins | 45% | 49% | 53% | 51% | 51% | 51% |
| Net Margins | 22% | 25% | 32% | 27% | 28% | 27% |
| Net Income (M) | $2,592 | $3,554 | $5,883 | $5,624 | $7,839 | $7,572 |
| Net Interest Expense (M) | $37 | $43 | $55 | $61 | $153 | $160 |
| Depreciation & Amort. (M) | $448 | $491 | $471 | $584 | $740 | $787 |
| Diluted Shares (M) | 422 | 419 | 410 | 398 | 394 | 394 |
| Earnings Per Share | $6.15 | $8.48 | $14.34 | $14.13 | $19.89 | $19.24 |
| EPS Growth | n/a | 37.89% | 69.1% | -1.46% | 40.76% | -3.27% |
| Free Cash Flow (M) | $2,510 | $3,666 | $9,945 | $7,205 | $3,288 | $9,099 |
| CAPEX (M) | $767 | $962 | $901 | $1,282 | $2,156 | $2,067 |
| Total Debt (M) | $3,108 | $4,663 | $4,075 | $3,514 | $4,632 | $3,677 |
| Net Debt / EBITDA | -0.13 | -0.31 | -0.4 | -0.53 | -0.24 | -0.92 |
| Current Ratio | 2.58 | 2.41 | 1.48 | 1.28 | 1.5 | 1.53 |
ASML has rapidly growing revenues and increasing reinvestment in the business, exceptional EPS growth, and generally positive cash flows. The company also benefits from wider gross margins than its peer group, a decent current ratio of 1.53, and healthy leverage levels.
a Very Low P/E Ratio but Trades Above Its Graham Number:
ASML has a trailing twelve month P/E ratio of 29.4, compared to an average of 30.44 for the Technology sector. Based on its EPS guidance of $26.7, the company has a forward P/E ratio of 28.4. According to the 23.3% compound average growth rate of ASML's historical and projected earnings per share, the company's PEG ratio is 1.26. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 14.8%. On this basis, the company's PEG ratio is 1.99. This suggests that these shares are overvalued. Furthermore, ASML is likely overvalued compared to the book value of its equity, since its P/B ratio of 16.96 is higher than the sector average of 4.19. The company's shares are currently trading 430.9% below their Graham number. Ultimately, ASML's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
ASML Has an Average Rating of Buy:
The 13 analysts following ASML have set target prices ranging from $729.58136 to $1128.9045 per share, for an average of $902.8 with a buy rating. The company is trading -16.2% away from its average target price, indicating that there is an analyst consensus of some upside potential.
ASML has a very low short interest because 0.8% of the company's shares are sold short. Institutions own 18.1% of the company's shares, and the insider ownership rate stands at 0.01%, suggesting a small amount of insider investors. The largest shareholder is Capital World Investors, whose 1% stake in the company is worth $3,372,924,769.
