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ASM International NV ASM

Morningstar Rating
€710.00 −19.40 (2.66%)
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Company Report

Raising ASM's Fair Value Estimate to EUR 520 After Increased Guidance

ASM International is a niche provider of wafer fab equipment. The firm has carved out a narrow moat and a solid competitive position in the semiconductor deposition market, more concretely in atomic layer deposition, or ALD, despite lacking the product breadth and scale of other wafer fab equipment providers like Applied Materials or Lam Research. ASM has done this through more than two decades of research and development, which is now paying off as semiconductor transistors keep shrinking and require more atomic layers. ASM’s management knows the deposition market is its strength and has made clear the firm will continue reinvesting in it, both through R&D and mergers and acquisitions, and stay away from other areas where the firm might lack competitive advantages.

Price vs Fair Value

ASM is trading at a 487% premium.
Price
€710.00
Fair Value
€158.00
Uncertainty
High
1-Star Price
€877.00
5-Star Price
€823.00
Economic Moat
Flvfyb
Capital Allocation
Sxwbnqgkl

Bulls Say, Bears Say

Bulls

We expect ASM’s growth will outperform the wafer fab equipment market, as the transition to gate-all-around transistors will increase adoption of ALD machines. Sales growth should also result in margin expansion.

Bears

ASM has smaller scale than its closest competitors Applied Materials and Lam, which can offer a broad product portfolio to foundries, facilitating data sharing and software integration.

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News

Trading Information

Previous Close Price
€729.40
Day Range
€694.20724.20
52-Week Range
€354.30738.80
Bid/Ask
€701.00 / €712.40
Market Cap
€34.88 Bil
Volume/Avg
262,814 / 128,488

Key Statistics

Price/Earnings (Normalized)
59.92
Price/Sales
13.72
Dividend Yield (Trailing)
0.39%
Dividend Yield (Forward)
0.39%
Total Yield
0.67%

Company Profile

ASM International is a Dutch company that provides deposition equipment for the fabrication of integrated circuits. It is the leader in atomic layer deposition, or ALD, a precise deposition technique that is required in the most advanced semiconductors. ASM’s main clients are foundries TSMC, Samsung, and Intel. Foundries and wafer fab equipment providers like ASM work closely, which gives the firm insight into the customer’s innovation and product road maps. Once a machine is established in a fab, it can generate service revenue for decades.
Sector
Technology
Industry
Semiconductor Equipment & Materials
Stock Style Box
Large Growth
Total Number of Employees
4,654

Competitors

Valuation

Metric
ASM
AMAT
LRCX
Price/Earnings (Normalized)
59.9228.5637.37
Price/Book Value
10.2110.7117.12
Price/Sales
13.727.469.80
Price/Cash Flow
50.0225.1333.76
Price/Earnings
ASM
AMAT
LRCX

Financial Strength

Metric
ASM
AMAT
LRCX
Quick Ratio
1.621.821.78
Current Ratio
2.362.802.82
Interest Coverage
32.4221.65
Quick Ratio
ASM
AMAT
LRCX

Profitability

Metric
ASM
AMAT
LRCX
Return on Assets (Normalized)
13.70%22.48%20.40%
Return on Equity (Normalized)
18.14%42.56%46.70%
Return on Invested Capital (Normalized)
17.60%28.55%28.62%
Return on Assets
ASM
AMAT
LRCX
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