Fact based stock research
ASML (ENXTAM:ASML)
NL0010273215
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
ASML stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 17 (worse than 83% compared with investment alternatives), ASML (Semiconductor Equipment, Netherlands) shares have lower financial characteristics compared with similar stocks. Shares of ASML are low in value (priced high) with a consolidated Value Rank of 20 (worse than 80% of alternatives), and are riskily financed (Safety Rank of 25, which means above-average debt burdens) but show above-average growth (Growth Rank of 70). ...read more
RECOMMENDATION: A Combined Rank of 17, is a sell recommendation based on ASML's financial characteristics. As the company ASML shows low value with an Obermatt Value Rank of 20 (80% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 70% of comparable companies (Obermatt Growth Rank is 70). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 25 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for ASML, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Netherlands |
| Industry | Semiconductor Equipment |
| Index | AEX, EURO STOXX 50, Employee Focus EU, Renewables Users, Recycling, NASDAQ 100, NASDAQ |
| Size class | XX-Large |
This stock has achievements: Top 10 Stock.
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.
Review the performance ranks of the individual metrics that form each investment strategy.
Research History: ASML
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 34 |
|
16 |
|
18 |
|
20 |
|
| GROWTH | ||||||||
| GROWTH | 73 |
|
88 |
|
50 |
|
70 |
|
| SAFETY | ||||||||
| SAFETY | 58 |
|
46 |
|
23 |
|
25 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
84 |
|
94 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
65 |
|
30 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 17 (worse than 83% compared with investment alternatives), ASML (Semiconductor Equipment, Netherlands) shares have lower financial characteristics compared with similar stocks. Shares of ASML are low in value (priced high) with a consolidated Value Rank of 20 (worse than 80% of alternatives), and are riskily financed (Safety Rank of 25, which means above-average debt burdens) but show above-average growth (Growth Rank of 70). ...read more
RECOMMENDATION: A Combined Rank of 17, is a sell recommendation based on ASML's financial characteristics. As the company ASML shows low value with an Obermatt Value Rank of 20 (80% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 70% of comparable companies (Obermatt Growth Rank is 70). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 25 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for ASML, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 34 |
|
16 |
|
18 |
|
20 |
|
| GROWTH | ||||||||
| GROWTH | 73 |
|
88 |
|
50 |
|
70 |
|
| SAFETY | ||||||||
| SAFETY | 58 |
|
46 |
|
23 |
|
25 |
|
| COMBINED | ||||||||
| COMBINED | 55 |
|
39 |
|
10 |
|
17 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 20 (worse than 80% compared with alternatives), ASML shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for ASML. Price-to-Sales is 9 which means that the stock price compared with what market professionals expect for future profits is higher than 91% of comparable companies, indicating a low value concerning ASML's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 3, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of ASML. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 26 and Dividend Yield, which is lower than 54% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 20, is a sell recommendation based on ASML's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for ASML? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as ASML? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. ASML may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 21 |
|
5 |
|
5 |
|
9 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 58 |
|
21 |
|
19 |
|
26 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 2 |
|
1 |
|
3 |
|
3 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 82 |
|
46 |
|
49 |
|
46 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 34 |
|
16 |
|
18 |
|
20 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 70 (better than 70% compared with alternatives), ASML shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for ASML. Sales Growth has a rank of 79 which means that currently, professionals expect the company to grow more than 79% of its competitors. Both Profit Growth, with a rank of 52, and Stock Returns, with a rank of 58, are also above average. But Capital Growth only has a rank of 40, which means that, currently, professionals expect the company to grow its invested capital less than 60% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 70, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 35 |
|
72 |
|
37 |
|
79 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 30 |
|
39 |
|
84 |
|
52 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
81 |
|
14 |
|
40 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 80 |
|
82 |
|
72 |
|
58 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 73 |
|
88 |
|
50 |
|
70 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 25 (better than 25% compared with alternatives), the company ASML has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of ASML is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for ASML. Liquidity is at 78, meaning the company generates more profit to service its debt than 78% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 8, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 92% of its competitors. Leverage is also high at a rank of 45, which means that the company has an above-average debt-to-equity ratio. It has more debt than 55% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 25 (worse than 75% compared with alternatives), ASML has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 47 |
|
45 |
|
35 |
|
45 |
|
| REFINANCING | ||||||||
| REFINANCING | 29 |
|
14 |
|
8 |
|
8 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 98 |
|
92 |
|
83 |
|
78 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 58 |
|
46 |
|
23 |
|
25 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
73 |
|
57 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
52 |
|
74 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
88 |
|
72 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
63 |
|
75 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
84 |
|
94 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for ASML from November 14, 2024.
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