ASML Holding (ASML) AI Stock Analysis

• Market Cap: $336.46B
• Dividend Yield: 0.73%
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 33.4
• Beta (1Y): 1.46
• Revenue Growth: 27.09%
• EPS Growth: 40.94%
• Country: US
• Employees: 43,129
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 6.84
• Shares Outstanding: 393,830,700
• 10 Day Avg. Volume: 1,606,846
• 30 Day Avg. Volume: 1,404,611
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 9.55
• Enterprise Value/Gross Profit: 18.18
• Enterprise Value/Ebitda: 24.81
• 1Y Price Target: $887.20
• Price Target Upside: -4.38% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 81 Outperform
• Price Target: $870.00 ▼(-6.23% Downside)

ASML's strong financial performance and positive earnings call results are the primary drivers of its high stock score. The company's robust growth in EUV revenue and solid order book position it well for future success. However, high valuation and geopolitical risks, particularly related to China, temper the overall outlook.

Positive Factors

EUV Revenue Growth

The expected 30% growth in EUV revenue highlights ASML's strong market position in advanced lithography, driven by AI and DRAM demand, ensuring sustained revenue growth.

Strong Order Book

A robust order book and significant backlog provide revenue visibility and stability, supporting long-term growth and operational planning.

Cash Flow Generation

Strong cash flow generation enhances ASML's ability to invest in R&D, pay dividends, and manage debt, supporting financial health and strategic initiatives.

Negative Factors

Geopolitical Risks

Geopolitical risks, especially tariffs, can disrupt supply chains and market access, potentially affecting ASML's growth and profitability.

Revenue Dependency on China

Increased revenue dependency on China amidst geopolitical tensions could expose ASML to regulatory risks and market volatility.

Gross Margin Challenges

Projected gross margin challenges may impact profitability, reflecting potential cost pressures and reduced upgrade revenue.

ASML Holding Business Overview & Revenue Model

Company Description

ASML Holding N.V. develops, produces, markets, sells, and services advanced semiconductor equipment systems for chipmakers. It offers advanced semiconductor equipment systems, including lithography, metrology, and inspection systems. The company also provides extreme ultraviolet lithography systems; and deep ultraviolet lithography systems comprising immersion and dry lithography solutions to manufacture various range of semiconductor nodes and technologies. In addition, it offers metrology and inspection systems, including YieldStar optical metrology systems to assess the quality of patterns on the wafers; and HMI electron beam solutions to locate and analyze individual chip defects. Further, the company provides computational lithography solutions, and lithography systems and control software solutions; and refurbishes and upgrades lithography systems, as well as offers customer support and related services. It operates in Japan, South Korea, Singapore, Taiwan, China, rest of Asia, the Netherlands, rest of Europe, the Middle East, Africa, and the United States. The company was formerly known as ASM Lithography Holding N.V. and changed its name to ASML Holding N.V. in 2001. ASML Holding N.V. was founded in 1984 and is headquartered in Veldhoven, the Netherlands.

How the Company Makes Money

ASML generates revenue primarily through the sale of its lithography systems, which are essential for semiconductor fabrication. The company's revenue model consists of two main components: system sales and service revenue. System sales involve the sale of lithography machines to semiconductor manufacturers, which can account for a significant portion of ASML's earnings. Additionally, ASML provides ongoing maintenance and support services, which create a recurring revenue stream. The company also benefits from a strong partnership ecosystem, collaborating with major semiconductor manufacturers like Intel, Samsung, and TSMC, which helps drive demand for its advanced equipment. Moreover, ASML invests heavily in research and development to innovate and improve its product offerings, further solidifying its position as a leader in the industry and contributing to its long-term revenue growth.

ASML Holding Financial Statement Overview

Summary

ASML exhibits strong financial performance with impressive revenue growth, high profit margins, and robust cash flow. The company's low financial leverage and efficient equity use further enhance its financial stability.

Income Statement

ASML has demonstrated strong revenue growth, with a TTM revenue increase of 13.8% over the previous year. The gross profit margin stands at 52.5% and the net profit margin at 29.3%, both of which are impressive within the semiconductor industry. The EBIT margin is 34.8% and the EBITDA margin is 38.5%, reflecting robust operational efficiency.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 0.21, indicating low financial leverage. The return on equity (ROE) is a commendable 53.4%, showcasing efficient use of equity. The equity ratio is 39.3%, suggesting a healthy proportion of assets financed by equity.

Cash Flow

ASML's cash flow is strong, with a free cash flow growth rate of 1.5% in the TTM. The operating cash flow to net income ratio is 1.19, and the free cash flow to net income ratio is 0.98, demonstrating robust cash flow generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.16B	28.26B	27.56B	21.17B	18.61B	13.98B
Gross Profit	16.89B	14.49B	14.14B	10.70B	9.81B	6.80B
EBITDA	12.38B	10.12B	9.98B	7.10B	7.23B	4.55B
Net Income	9.42B	7.57B	7.84B	5.62B	5.88B	3.55B
Balance Sheet
Total Assets	44.85B	48.59B	39.96B	38.83B	30.23B	27.27B
Cash, Cash Equivalents and Short-Term Investments	7.25B	12.74B	7.01B	7.38B	7.59B	7.35B
Total Debt	3.70B	4.99B	4.86B	4.26B	4.08B	4.66B
Total Liabilities	27.23B	30.11B	26.51B	27.54B	20.09B	13.40B
Stockholders Equity	17.62B	18.48B	13.45B	11.29B	10.14B	13.87B
Cash Flow
Free Cash Flow	9.23B	9.10B	3.25B	7.22B	9.91B	3.63B
Operating Cash Flow	11.18B	11.17B	5.44B	9.43B	10.85B	4.63B
Investing Cash Flow	-2.29B	-2.61B	-2.69B	-1.92B	-72.00M	-1.35B
Financing Cash Flow	-6.45B	-2.83B	-3.00B	-7.19B	-9.89B	-753.00M

ASML Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 927.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASML, the sentiment is Positive. The current price of 927.8 is above the 20-day moving average (MA) of 801.85, above the 50-day MA of 760.47, and above the 200-day MA of 731.16, indicating a bullish trend. The MACD of 42.16 indicates Negative momentum. The RSI at 80.11 is Negative, neither overbought nor oversold. The STOCH value of 93.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASML.

ASML Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LRCX	82 Outperform	160.05B	30.42	54.33%	0.72%	23.68%	43.16%
ASML	81 Outperform	$336.46B	33.40	56.14%	0.73%	27.09%	40.94%
KLAC	80 Outperform	137.87B	34.47	86.56%	0.69%	24.04%	49.69%
TSM	77 Outperform	1.09T	30.58	27.36%	1.09%	38.65%	57.18%
AMAT	76 Outperform	151.44B	22.62	35.03%	0.90%	6.70%	-5.95%
INTC	60 Neutral	138.15B	-6.21	-20.95%	0.41%	-3.72%	-2120.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

ASML Holding Corporate Events

ASML Reports Strong Q2 2025 Results with €7.7 Billion in Sales

On July 16, 2025, ASML Holding reported its financial results for the second quarter of 2025, achieving €7.7 billion in total net sales and a net income of €2.3 billion. The company anticipates a 15% growth in total net sales for the full year 2025, with a gross margin of around 52%. ASML’s Q2 performance was bolstered by advancements in lithography technology and increased EUV adoption, which are crucial for its market positioning. The company also announced an interim dividend and continued its share buyback program, reflecting confidence in its financial health and commitment to shareholder returns.