ASML Holding NV (ASML, Financial) has experienced a remarkable surge in its stock price, with a 10.18% gain over the past week and an impressive 32.77% gain over the past three months. Currently, the market capitalization stands at a robust $307.14 billion, reflecting the company's significant presence in the semiconductor industry. The current price of $778.39, while substantial, is still considered modestly undervalued when compared to the GF Value of $884.85. This valuation suggests that the stock may still have room to grow, despite the recent uptick. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Notably, the past GF Value was $897.68, indicating a slight decrease in the intrinsic value estimation over time. However, the stock's valuation has improved from being significantly undervalued three months ago to modestly undervalued today.
Introduction to ASML Holding NV
ASML Holding NV is a titan in the semiconductor industry, specializing in the development and supply of photolithography systems. These systems are crucial for semiconductor manufacturing, enabling chipmakers to pack more transistors into silicon wafers. ASML's technology is pivotal for advancing the capabilities of electronic devices. The company's business model involves outsourcing the production of most components, positioning itself primarily as an assembler. Its clientele includes industry heavyweights such as TSMC, Samsung, and Intel, underscoring ASML's importance in the semiconductor supply chain. 
ASML's Profitability in the Semiconductor Sector
ASML's financial health is robust, with a Profitability Rank of 10/10, indicating top-tier profitability within the industry. The company's operating margin stands at an impressive 32.80%, outperforming 95.22% of its peers. Furthermore, ASML's return on equity (ROE) is a staggering 77.39%, surpassing 98.54% of competitors. The return on assets (ROA) and return on invested capital (ROIC) are equally strong at 21.29% and 24.45%, respectively, further solidifying ASML's financial prowess. These figures are not only indicative of ASML's efficiency in generating profits but also highlight its ability to reinvest earnings effectively. The company has maintained profitability for the past decade, a testament to its enduring success and industry leadership. 
Growth Trajectory of ASML
ASML's growth metrics are equally impressive, with a Growth Rank of 10/10. The company has demonstrated a strong 3-Year Revenue Growth Rate per Share of 23.80%, and an even more robust 5-Year Revenue Growth Rate per Share of 20.70%. These rates are higher than those of the majority of their industry counterparts. Looking ahead, ASML's Total Revenue Growth Rate is estimated at 10.63% for the next 3 to 5 years. The company's earnings per share (EPS) growth rates are also noteworthy, with a 3-Year EPS without NRI Growth Rate of 32.00% and a 5-Year EPS without NRI Growth Rate of 26.80%. These growth rates are expected to continue, with an estimated EPS Growth Rate of 21.30% over the next 3 to 5 years. These figures underscore ASML's ability to not only maintain but also expand its market position and profitability. 
Investment Insights: Top ASML Shareholders
ASML's stock is held by notable investors, signaling confidence in the company's prospects. Ken Fisher (Trades, Portfolio) holds a significant stake with 4,872,163 shares, representing 1.23% of the company. Frank Sands (Trades, Portfolio) follows with 1,495,236 shares, amounting to 0.38%, and PRIMECAP Management (Trades, Portfolio) owns 594,279 shares, or 0.15%. These investments by prominent market players reflect a strong endorsement of ASML's business strategy and future growth potential.
ASML's Competitive Landscape
When compared to its competitors, ASML's market capitalization of $307.14 billion dwarfs that of ASM International NV (XAMS:ASM, Financial) at $27.08 billion and BE Semiconductor Industries NV (XAMS:BESI, Financial) at $12 billion. However, Applied Materials Inc (AMAT, Financial) holds a significant market cap of $138.83 billion, indicating that ASML operates within a competitive field with substantial players. Despite this, ASML's market position and financial metrics suggest a strong competitive edge.
Conclusion: ASML's Market Position and Future Outlook
In summary, ASML Holding NV's recent stock performance and current valuation reflect a company that is both growing and profitable. The semiconductor industry leader has demonstrated strong financial health, with impressive profitability and growth metrics that outshine many of its peers. The confidence shown by major investors, along with the company's competitive standing, further solidifies ASML's position in the market. As the demand for advanced semiconductor technology continues to rise, ASML is well-positioned to capitalize on industry trends and maintain its trajectory of success.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
