ASML Holding NV (ASML, Financial) is a leading player in the semiconductor industry, with a market capitalization of $278.2 billion. As of July 27, 2023, the company's stock price stands at $707.18, marking a 3.34% gain for the day. However, over the past four weeks, the stock has seen a slight dip of 1.46%. Despite this short-term fluctuation, ASML's GF Score of 99 out of 100 indicates a high potential for outperformance, making it an attractive option for value investors.
ASML's Financial Strength
ASML's Financial Strength rank is 8 out of 10, indicating a robust financial situation. The company's interest coverage ratio is a healthy 247.99, suggesting it can comfortably meet its interest obligations. Furthermore, its debt to revenue ratio of 0.18 is relatively low, indicating a manageable debt burden. The Altman Z score of 7.19 further confirms the company's financial stability.
Profitability Rank Analysis
ASML's Profitability Rank is a perfect 10 out of 10. The company's Operating Margin of 32.99% and Piotroski F-Score of 8 indicate strong profitability. Moreover, the company has consistently maintained profitability over the past 10 years, further enhancing its rank.
Growth Rank Analysis
ASML also excels in terms of growth, with a Growth Rank of 10 out of 10. The company's 5-year revenue growth rate stands at 20.70%, and its 3-year revenue growth rate is 23.80%. Additionally, its 5-year EBITDA growth rate is an impressive 25.20%, indicating robust growth in the company's business operations.
GF Value Rank Analysis
The company's GF Value Rank is 9 out of 10, suggesting that the stock is reasonably valued. This rank is determined by the price-to-GF-Value ratio, which takes into account historical multiples and an adjustment factor based on past returns, growth, and future business performance estimates.
Momentum Rank Analysis
ASML's Momentum Rank is 9 out of 10, indicating strong stock price performance. This rank is determined using the standardized momentum ratio and other momentum indicators, reflecting the stock's performance over the past 12 months.
Competitor Analysis
When compared to its main competitors in the semiconductor industry, ASML's GF Score of 99 outperforms ASM International NV's score of 90 and BE Semiconductor Industries NV's score of 81. However, it is slightly higher than Applied Materials Inc's score of 97. This suggests that ASML has a higher performance potential relative to its competitors.
In conclusion, ASML's high GF Score, robust financial strength, strong profitability, impressive growth, reasonable valuation, and strong momentum make it a compelling choice for value investors.
