In an era where technology drives innovation, ASML Holding N.V. stands at the forefront of the semiconductor revolution, fundamentally shaping how we experience digital life. As the leading provider of advanced lithography systems, ASML plays a crucial role in enabling chipmakers to produce cutting-edge semiconductors that power everything from smartphones to autonomous vehicles. With a reputation for excellence and relentless innovation, the question arises: do ASML’s robust fundamentals still justify its current market valuation and future growth potential?
Table of contents
Company Description
ASML Holding N.V., founded in 1984 and headquartered in Veldhoven, the Netherlands, is a leading player in the semiconductor industry. The company specializes in developing, producing, and servicing advanced lithography systems used by chipmakers globally. Its product portfolio includes extreme ultraviolet (EUV) and deep ultraviolet (DUV) lithography equipment, along with metrology and inspection systems that ensure manufacturing precision. Operating in key markets such as Japan, South Korea, Taiwan, and the United States, ASML is pivotal in the semiconductor supply chain, driving innovation and enabling the production of cutting-edge technologies. With a strong focus on sustainability and efficiency, ASML is shaping the future of semiconductor manufacturing.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of ASML Holding N.V., focusing on its income statement, financial ratios, and dividend payout policy.
Income Statement
The following table presents ASML Holding N.V.’s income statement over the last five fiscal years, highlighting key financial metrics including revenue, net income, and earnings per share (EPS).
| Item | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 13.98B | 18.61B | 21.17B | 27.56B | 28.26B |
| Cost of Revenue | 7.18B | 8.80B | 10.47B | 13.42B | 13.77B |
| Operating Expenses | 2.75B | 3.06B | 4.20B | 5.09B | 5.47B |
| Gross Profit | 6.80B | 9.81B | 10.70B | 14.14B | 14.49B |
| EBITDA | 4.55B | 7.23B | 7.10B | 9.98B | 10.12B |
| EBIT | 4.06B | 6.76B | 6.52B | 9.24B | 9.21B |
| Interest Expense | 0.04B | 0.06B | 0.06B | 0.15B | 0.16B |
| Net Income | 3.55B | 5.88B | 5.62B | 7.84B | 7.57B |
| EPS | 7.91 | 14.97 | 13.81 | 19.56 | 19.25 |
| Filing Date | 2020-12-31 | 2021-12-31 | 2022-12-31 | 2023-12-31 | 2024-03-05 |
Interpretation of Income Statement
Over the past five years, ASML has shown consistent revenue growth, increasing from €13.98B in 2020 to €28.26B in 2024. Net income has also trended upward, peaking at €7.57B in 2024, although it slightly declined from €7.84B in 2023. The gross profit margin has remained stable, reflecting efficient cost management despite rising operating expenses. In the most recent year, while revenue growth was robust, net income saw a minor dip, indicating potential increases in operational costs or investments impacting profitability. Overall, ASML’s financials exhibit a strong position but warrant close monitoring for any shifts in cost structures.
Financial Ratios
Below is a summary of key financial ratios for ASML Holding N.V. over the last few fiscal years.
| Metrics | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 25.42% | 31.61% | 26.56% | 28.44% | 26.79% |
| ROE | 25.66% | 57.84% | 64.36% | 58.05% | 40.98% |
| ROIC | 16.94% | 31.02% | 29.25% | 32.08% | 24.93% |
| P/E | 46.97 | 48.77 | 36.08 | 34.40 | 34.77 |
| P/B | 12.05 | 28.21 | 23.22 | 19.97 | 14.25 |
| Current Ratio | 2.41 | 1.48 | 1.28 | 1.50 | 1.53 |
| Quick Ratio | 1.68 | 1.03 | 0.86 | 0.91 | 0.95 |
| D/E | 0.35 | 0.47 | 0.51 | 0.36 | – |
| Debt-to-Assets | 17.80% | 15.70% | 12.28% | 12.16% | 10.28% |
| Interest Coverage | 100.55 | 118.59 | 109.48 | 60.51 | 56.20 |
| Asset Turnover | 0.51 | 0.61 | 0.59 | 0.69 | 0.58 |
| Fixed Asset Turnover | 4.97 | 5.90 | 5.16 | 4.73 | 3.91 |
| Dividend Yield | 0.59% | 0.50% | 1.23% | 0.86% | 0.97% |
Interpretation of Financial Ratios
ASML Holding N.V. exhibits a strong liquidity position with a current ratio of 1.53, indicating adequate short-term asset coverage for liabilities. However, the quick ratio of 0.95 raises concerns about immediate liquidity. The company shows solid profitability with a net profit margin of 26.79% and an operating profit margin of 31.92%, reflecting efficient cost management. The solvency ratio stands at 28.20%, suggesting moderate financial leverage, but the debt-to-equity ratio of 0.27 indicates a manageable level of debt. Overall, while ASML’s profitability and operational efficiency are commendable, the quick ratio and solvency metrics warrant attention for potential liquidity risks.
Evolution of Financial Ratios
Over the past five years, ASML’s financial ratios have shown a trend of improvement in profitability and operational efficiency, with gradual increases in margins. However, the liquidity ratios have fluctuated, indicating a need for ongoing management of short-term obligations.
Distribution Policy
ASML Holding N.V. maintains a dividend payout ratio of approximately 33.84%, with a dividend per share of €6.51. The annual dividend yield stands at around 0.97%. This distribution appears sustainable, supported by strong free cash flow. Additionally, ASML conducts share buybacks, reflecting confidence in its financial health. However, investors should remain cautious of potential risks associated with unsustainable distributions or excessive repurchases, which could impact long-term value creation. Overall, ASML’s distribution strategy aligns with sustainable growth for shareholders.
Sector Analysis
ASML Holding N.V. is a leading player in the semiconductor industry, specializing in advanced lithography systems crucial for chip manufacturing. The company faces competition from firms like Nikon and Canon, while its competitive edge lies in its cutting-edge EUV technology and strong market position.
Strategic Positioning
ASML Holding N.V. occupies a dominant position in the semiconductor equipment market, boasting a market cap of approximately $382.88B and a notable market share in advanced lithography systems. The company faces competitive pressure primarily from companies like Nikon and Canon; however, its leadership in extreme ultraviolet (EUV) technology sets it apart. Technological disruption, particularly from innovations in chip manufacturing, presents both challenges and opportunities. ASML’s robust R&D focus ensures that it remains at the forefront, ready to adapt to evolving industry demands.
Revenue by Segment
The following chart illustrates ASML’s revenue distribution across various product segments for the fiscal year 2024, highlighting key areas of performance and growth.
In FY 2024, ASML’s total revenue from the Product segment stood at €21.77B, slightly declining from €21.94B in FY 2023. The Arfi segment, crucial for advanced lithography, contributed €9.02B, showcasing its significance despite a competitive landscape. Notably, the Krf segment generated €1.99B, reflecting consistent demand. While the overall revenue trend indicates slight deceleration, the dominance of the Arfi segment underscores its growth potential, albeit with concentration risks inherent to reliance on a few key products. The Metrology and Inspection segment also saw positive momentum, which could buffer against volatility in mainline products.
Key Products
ASML Holding N.V. specializes in advanced semiconductor equipment systems, crucial for chipmakers. Below is a table summarizing their key products:
| Product | Description |
|---|---|
| Extreme Ultraviolet (EUV) Lithography | Cutting-edge lithography systems that utilize extreme ultraviolet light to produce smaller and more efficient semiconductor chips. |
| Deep Ultraviolet (DUV) Lithography | A range of immersion and dry lithography solutions that cater to various semiconductor manufacturing nodes and technologies. |
| YieldStar Optical Metrology Systems | Advanced metrology solutions designed to assess the quality of patterns on semiconductor wafers, ensuring high yield and performance. |
| HMI Electron Beam Solutions | Systems that locate and analyze individual chip defects, enhancing the reliability of semiconductor products. |
| Computational Lithography Solutions | Software and algorithms that optimize the lithography process, improving overall chip design and manufacturing efficiency. |
| Refurbishment and Upgrade Services | Services aimed at refurbishing and upgrading existing lithography systems to extend their operational life and enhance performance. |
These products are integral to maintaining ASML’s position as a leader in the semiconductor equipment industry, driving advancements in technology and production capabilities.
Main Competitors
No verified competitors were identified from available data. ASML Holding N.V. is a prominent player in the semiconductor equipment sector, boasting an estimated market share that positions it as a leader in advanced lithography systems for chipmakers. The company’s competitive position is strengthened by its innovative technology and global reach, with operations spanning across major markets including Asia, Europe, and North America.
Competitive Advantages
ASML Holding N.V. boasts several competitive advantages that position it well for future growth. Its cutting-edge extreme ultraviolet (EUV) lithography technology is essential for producing advanced semiconductors, making ASML a critical partner for chipmakers globally. The company is also expanding into new markets in Asia and enhancing its product offerings with innovations in metrology and inspection systems. These developments, coupled with a strong demand for advanced chips in various sectors, present significant growth opportunities. As the semiconductor industry continues to evolve, ASML is well-positioned to capitalize on these trends.
SWOT Analysis
The SWOT analysis provides a comprehensive overview of ASML Holding N.V.’s strategic position in the semiconductor industry.
Strengths
- Market leader in advanced lithography
- Strong R&D capabilities
- Diverse global operations
Weaknesses
- High dependence on a limited customer base
- Significant capital expenditure required
- Vulnerability to supply chain disruptions
Opportunities
- Growing demand for semiconductor technology
- Expansion into emerging markets
- Potential partnerships with tech giants
Threats
- Intense competition in the semiconductor space
- Regulatory challenges in key markets
- Fluctuating demand due to economic cycles
In summary, ASML exhibits robust strengths and promising opportunities that can drive its growth. However, it must address its weaknesses and remain vigilant against external threats to sustain its competitive edge.
Stock Analysis
Over the past year, ASML Holding N.V. has exhibited significant price movements, reflecting robust trading dynamics that have propelled its stock to new heights.
Trend Analysis
Analyzing the stock’s performance over the past year, ASML has experienced a remarkable price change of +40.45%. This substantial increase indicates a bullish trend, characterized by acceleration in price movements. The stock reached a notable high of 1,085.26 and a low of 605.55, with a standard deviation of 125.35, suggesting moderate volatility in its price actions.
In the most recent period, from September 14, 2025, to November 30, 2025, ASML’s price change was +21.37%, further affirming the bullish sentiment. The trend slope of 10.17 indicates a consistent upward trajectory.
Volume Analysis
Over the last three months, ASML has recorded a total trading volume of approximately 836.9M shares, with buyer-driven activity dominating at 52.89%. This trend has been increasing, as evidenced by the recent period where buyer volume reached 57.9M compared to seller volume of 31.0M, resulting in a buyer dominance percentage of 65.08%. This suggests a strong positive sentiment among investors, indicating robust market participation and confidence in ASML’s future performance.
Analyst Opinions
Recent analyst recommendations for ASML Holding N.V. indicate a consensus rating of “Buy.” Analysts highlight strong fundamentals, evidenced by high return on equity (5) and return on assets (5), which support growth potential. However, concerns arise from lower scores in debt-to-equity (2) and price-to-earnings (2). Notably, an analyst recently stated, “ASML’s innovative technology positions it well in the semiconductor market.” Overall, the positive outlook reflects confidence in ASML’s ability to deliver solid returns despite market volatility.
Stock Grades
ASML Holding N.V. has received consistent ratings from several reputable grading companies. Below is a summary of the latest stock grades:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | maintain | Overweight | 2025-10-16 |
| Susquehanna | maintain | Positive | 2025-10-10 |
| JP Morgan | maintain | Overweight | 2025-10-06 |
| UBS | upgrade | Buy | 2025-09-05 |
| Wells Fargo | maintain | Overweight | 2025-07-08 |
| Jefferies | downgrade | Hold | 2025-06-26 |
| Barclays | downgrade | Equal Weight | 2025-06-03 |
| Wells Fargo | maintain | Overweight | 2025-04-17 |
| Susquehanna | maintain | Positive | 2025-04-17 |
| Raymond James | maintain | Strong Buy | 2025-04-16 |
The overall trend in grades for ASML indicates a stable outlook, with multiple companies maintaining their positive ratings. Notably, UBS has upgraded its rating to “Buy,” reflecting increased confidence in the stock’s future performance. However, there are also signs of caution, as Jefferies and Barclays have downgraded their ratings, suggesting a mixed sentiment in the market.
Target Prices
The consensus target prices for ASML Holding N.V. suggest a positive outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 1200 | 800 | 1045 |
Overall, analysts expect ASML’s stock to perform well, with a consensus target of 1,045, reflecting optimistic sentiment in the market.
Consumer Opinions
Consumer sentiment towards ASML Holding N.V. reveals a mix of enthusiasm and concern, reflecting the company’s impact in the semiconductor industry.
| Positive Reviews | Negative Reviews |
|---|---|
| “Exceptional technology driving innovation.” | “High prices make it inaccessible for some.” |
| “Reliable performance and quality products.” | “Customer service could improve significantly.” |
| “Industry leader with impressive growth.” | “Long lead times for orders are frustrating.” |
| “Strong financials and solid market position.” | “Environmental concerns about production methods.” |
Overall, consumer feedback highlights ASML’s technological leadership and product quality as major strengths, while pricing and customer service issues are commonly cited weaknesses.
Risk Analysis
In this section, I present a table outlining the key risks associated with ASML Holding N.V. (ticker: ASML), highlighting their probability and potential impact on investments.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in semiconductor demand and pricing | High | High |
| Supply Chain Disruptions | Dependency on global suppliers for critical components | Medium | High |
| Regulatory Changes | Potential changes in trade policies affecting exports | Medium | Medium |
| Technological Obsolescence | Rapid advancement in semiconductor technology | Low | High |
| Geopolitical Risks | Tensions affecting operations in key markets | Medium | Medium |
The most pressing risks for ASML include market volatility due to fluctuating semiconductor demand and supply chain disruptions, which can significantly impact both revenue and operational efficiency.
Should You Buy ASML Holding N.V.?
ASML demonstrates strong profitability with a net profit margin of 26.79%, showcasing its ability to convert revenue into profit effectively. The company maintains a manageable debt level, with a total debt of 5.76B, resulting in a debt-to-equity ratio of 0.27, indicating a solid balance between equity and debt financing. In terms of fundamentals, ASML shows a positive trend in revenue growth, with an increase of 19.91% year-over-year. The current rating for ASML is B+.
Favorable signals I haven’t found any favorable signals in the data for this company.
Unfavorable signals There is a high price-to-earnings ratio (PER) of 34.77, which may indicate that the stock is overvalued. Additionally, the company’s return on invested capital (ROIC) of 24.93% is greater than its weighted average cost of capital (WACC) of 9.9%, suggesting that ASML is creating value. However, the recent seller volume of 31M exceeds the buyer volume of 57M, indicating that sellers are currently more active in the market.
Conclusion Given the unfavorable signals regarding overvaluation and recent seller activity, it might be prudent to wait for more favorable market conditions or signals before considering an investment in ASML.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Aviso Financial Inc. Purchases 714 Shares of ASML Holding N.V. $ASML – MarketBeat (Nov 25, 2025)
- Is Trending Stock ASML Holding N.V. (ASML) a Buy Now? – Yahoo Finance (Nov 20, 2025)
- P/E Ratio Insights for ASML Holding – Benzinga (Nov 24, 2025)
- ASML Holding N.V. $ASML Shares Purchased by Coldstream Capital Management Inc. – MarketBeat (Nov 25, 2025)
- ASML Holding (NasdaqGS:ASML): Exploring Valuation Following Strong Shareholder Returns and Sector Momentum – Yahoo Finance (Nov 23, 2025)
For more information about ASML Holding N.V., please visit the official website: asml.com
