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 These plans seem already outdated, as management has acknowledged that this might not be enough to meet customer demand.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) | 44.43 | 33.82 | 30.46 |
Price/Book Value | 21.87 | 27.67 | 10.30 |
Price/Sales | 11.97 | 12.57 | 8.62 |
Price/Cash Flow | 31.82 | 30.26 | 29.49 |
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|lBl%QC& | LOCK|F& | $555B | |||
| Applied Materials Inc AMAT | LOCK|LL?N!ng | LOCK|Z&M | $264B | |||
| Lam Research Corp LRCX | LOCK|H>L#F@P | LOCK|kf | $250B | |||
| KLA Corp KLAC | LOCK|N!>CK<% | LOCK|&k | $180B | |||
| Advantest Corp ADR ATEYY | — | LOCK|Pn# | $128B | |||
| Advantest Corp ADTTF | — | LOCK|&> | $128B | |||
| Teradyne Inc TER | LOCK|>!<S<JZ | LOCK|$?M | $34B | |||
| Qnity Electronics Inc Q | LOCK|Qb>mnLL | LOCK|f>#y | $24B | |||
| Entegris Inc ENTG | LOCK|^q?Kjf | LOCK|>@< | $20B |
United States