ASML announced last quarter plans to expand low-NA EUV and immersion DUV capacity by 30% in 2027 and another 30% in 2028. These plans seem already outdated, as management has acknowledged that this might not be enough to meet customer demand.
ASML’s machines can last 30 years, providing recurring service revenue. The switching costs and intangible assets required to displace these machines are enormous, with no competitor coming close to ASML’s technological leadership.
ASML sells a low-volume, high-price product. Lithography machines represent a high proportion of customers' costs, so if the company fails to innovate, customers will look for alternatives.
|
Metric
|
ASML
|
KLAC
|
AMAT
|
|---|---|---|---|
Price/Earnings (Normalized) | 48.84 | 38.61 | 35.71 |
Price/Book Value | 24.04 | 31.55 | 12.08 |
Price/Sales | 13.16 | 14.33 | 10.11 |
Price/Cash Flow | 34.97 | 34.50 | 34.57 |
|
Metric
|
ASML
|
KLAC
|
AMAT
|
|---|---|---|---|
Quick Ratio | 0.95 | 1.76 | 1.67 |
Current Ratio | 1.49 | 2.76 | 2.42 |
Interest Coverage | — | 22.13 | 33.00 |
|
Metric
|
ASML
|
KLAC
|
AMAT
|
|---|---|---|---|
Return on Assets (Normalized) | 27.07% | 31.27% | 22.69% |
Return on Equity (Normalized) | 66.27% | 92.53% | 39.18% |
Return on Invested Capital (Normalized) | 57.96% | 45.98% | 25.01% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| ASML Holding NV
ASMLF
| LOCK|HQJsqz! | LOCK|^w& | $609B | |||
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AMAT
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| Lam Research Corp
LRCX
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| KLA Corp
KLAC
| LOCK|^fdNcYns | LOCK|?<j | $206B | |||
| Advantest Corp ADR
ATEYY
| — | LOCK|nV | $159B | |||
| Advantest Corp
ADTTF
| — | LOCK|^? | $159B | |||
| Teradyne Inc
TER
| LOCK|w!GmvV | LOCK|@^ | $43B | |||
| Qnity Electronics Inc
Q
| LOCK|$%fb^#r | LOCK|m%<pr | $24B | |||
| Entegris Inc
ENTG
| LOCK|?KNy^^^ | LOCK|sy | $24B |
United States