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ASML Holding NV ASML

Morningstar Rating
€907.50 −1.60 (0.18%)
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Company Report

We Expect a Flat 2024 for ASML Followed by Strong 2025 Due to New Fab Openings

We believe ASML will remain the top lithography equipment provider in semiconductor foundries for at least the next two decades. Taiwan Semiconductor Manufacturing, Intel, and Samsung’s fabs were redesigned one decade ago to make them suitable for extreme ultraviolet lithography, a costly and long endeavor, so it is quite unlikely ASML will be displaced from its place in the foundry. In addition, no competitor has yet matched ASML’s technological leadership and the company’s competitive advantage will likely keep expanding as it grows its already high EUR 4 billion research and development budget.

Price vs Fair Value

ASML is trading at a 30% premium.
Price
€909.10
Fair Value
€475.00
Uncertainty
High
1-Star Price
€2,471.00
5-Star Price
€892.00
Economic Moat
Lpvng
Capital Allocation
Dmnrphpmj

Bulls Say, Bears Say

Bulls

ASML’s machines last more than 30 years, providing recurring service revenue. The switching costs and intangible assets required to displace these machines are enormous, with no competitor coming even close to ASML’s technological leadership

Bears

ASML sells a low-volume, high-price product. Lithography machines represent a high proportion of customer costs, so if the company fails to innovate customers will look for alternatives.

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News

Trading Information

Previous Close Price
€909.10
Day Range
€899.80934.40
52-Week Range
€534.40958.40
Bid/Ask
€905.00 / €908.00
Market Cap
€358.09 Bil
Volume/Avg
509,980 / 541,430

Key Statistics

Price/Earnings (Normalized)
45.74
Price/Sales
13.06
Dividend Yield (Trailing)
0.67%
Dividend Yield (Forward)
0.78%
Total Yield
0.93%

Company Profile

ASML is the leader in photolithography systems used in the manufacturing of semiconductors. Photolithography is the process in which a light source is used to expose circuit patterns from a photo mask onto a semiconductor wafer. The latest technological advances in this segment allow chipmakers to continually increase the number of transistors on the same area of silicon, with lithography historically representing a high portion of the cost of making cutting-edge chips. ASML outsources the manufacturing of most of its parts, acting like an assembler. ASML’s main clients are TSMC, Samsung, and Intel.
Sector
Technology
Industry
Semiconductor Equipment & Materials
Stock Style Box
Large Growth
Total Number of Employees
44,085

Competitors

Valuation

Metric
ASML
AMAT
LRCX
Price/Earnings (Normalized)
45.7426.0035.16
Price/Book Value
26.719.9815.35
Price/Sales
13.066.658.98
Price/Cash Flow
39.5222.2332.14
Price/Earnings
ASML
AMAT
LRCX

Financial Strength

Metric
ASML
AMAT
LRCX
Quick Ratio
0.881.771.95
Current Ratio
1.502.713.06
Interest Coverage
59.2224.6020.98
Quick Ratio
ASML
AMAT
LRCX

Profitability

Metric
ASML
AMAT
LRCX
Return on Assets (Normalized)
21.48%22.91%19.81%
Return on Equity (Normalized)
73.05%44.88%45.47%
Return on Invested Capital (Normalized)
52.22%30.44%28.12%
Return on Assets
ASML
AMAT
LRCX
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Semiconductor Equipment & Materials Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
ASMLF
ASML Holding NVCjptcrhghhMbcv$385.4 Bil
ASML
ASML Holding NV ADRYfgzmbcfmrYhw$385.3 Bil
AMAT
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LRCX
Lam Research CorpJrwwzxmpnzTjv$128.9 Bil
TOELY
Tokyo Electron Ltd ADRNzjbl$118.9 Bil
TOELF
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KLAC
KLA CorpYwxzmlpvTmf$92.9 Bil
DSCSY
Disco Corp ADRJpvd$40.4 Bil
DISPF
Disco CorpCphv$39.6 Bil
TER
Teradyne IncWqmmqlffBnxyq$16.7 Bil

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