ASMLASML
US • TECHNOLOGY
$1757.09
P/E
66.90
PEG
2.35
FCF Yield
1.8%
Rev Growth YoY
+21.3% YoY
Gross Margin
52.7%
Health Score
9/10
D/E Ratio
0.19
Confidence
MEDIUM
Business Snapshot
ASML is a dominant player in the semiconductor equipment industry, primarily known for its lithography systems essential for manufacturing advanced microchips. The company holds a near-monopoly position in extreme ultraviolet (EUV) lithography, which is critical for producing the most advanced logic and memory chips. As a large-cap company with a market capitalisation of $692.53B, it generated $35.33B in trailing twelve-month revenue, reflecting its central role in the global semiconductor supply chain. A defining characteristic is its technological moat — no other company offers EUV systems, giving it unmatched pricing power and long-term demand visibility as chipmakers invest in next-generation production.
Financial Health
Gross margin stands at 52.7%, paired with a strong net margin of 30.1% — indicating efficient cost management and substantial profitability on each dollar of revenue. The balance sheet is conservative, with a debt-to-equity ratio of just 0.19x and a current ratio of 1.24x, suggesting ample liquidity and very low leverage risk...
Risk Assessment
- VALUATION — P/E ratio of 66.9x is more than three times the sector average of 22x, reflecting an extremely high multiple that leaves little room for execution missteps.
- VALUATION DIVERGENCE — The Python DCF estimate of $568.23 implies the stock trades at a 209% premium to its intrinsic value under conservative assumptions, though the absence of a second FMP DCF estimate limits cross-validation.
- EARNINGS QUALITY — Earnings estimates were beaten in only 2 of the last 4 quarters, indicating modest guidance precision rather than a consistent pattern of outperformance.
- TECHNICALS — RSI, MACD, and moving average data are unavailable for this period; momentum cannot be independently confirmed beyond price-MA positioning....
Gross margin stands at 52.7%, paired with a strong net margin of 30.1% — indicating efficient cost management and substantial profitability on each dollar of revenue. The balance sheet is conservative, with a debt-to-equity ratio of just 0.19x and a current ratio of 1.24x, suggesting ample liquidity and very low leverage risk. Free cash flow of $12.57B is robust in absolute terms, translating to a free cash flow yield of 1.8%, which demonstrates significant cash generation after capital expenditures. Overall, ASML’s financial health is excellent, providing ample capacity for reinvestment in R&D, dividend payments, and share repurchases without straining its capital structure.
- VALUATION — P/E ratio of 66.9x is more than three times the sector average of 22x, reflecting an extremely high multiple that leaves little room for execution missteps. - VALUATION DIVERGENCE — The Python DCF estimate of $568.23 implies the stock trades at a 209% premium to its intrinsic value under conservative assumptions, though the absence of a second FMP DCF estimate limits cross-validation. - EARNINGS QUALITY — Earnings estimates were beaten in only 2 of the last 4 quarters, indicating modest guidance precision rather than a consistent pattern of outperformance. - TECHNICALS — RSI, MACD, and moving average data are unavailable for this period; momentum cannot be independently confirmed beyond price-MA positioning.
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