About ASML HOLDING NV
ASML Holding N.V. develops, produces, markets, sells, and services advanced semiconductor equipment systems consisting of lithography, metrology, and inspection related systems for memory and logic chipmakers. The company 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. It also offers metrology and inspection systems, including YieldStar optical metrology solutions to measure the quality of patterns on the wafers; and HMI e-beam solutions to locate and analyze individual chip defects. In addition, the company provides computational lithography and software solutions to create applications that enhance the setup of the lithography system; and mature products and services that refurbish used lithography equipment and offers associated services. It operates in Japan, South Korea, Singapore, Taiwan, China, the Netherlands, Europe, the United States, and rest of Asia.
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.
ASML operates in the Manufacturing | Machinery | approximately 39,100 employees | led by CEO Peter T. F. M. Wennink.
$272.1 billion 34.7x P/E 14.2x P/B 25.5x EV/EBITDA 46.1% ROE -4.0% rev. growth 1.0% yield
ASML HOLDING NV earns a Buy rating from our quantitative model with a composite score of 74/100, ranking #23 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is quality at 89/100, which places ASML in the top 11 percent of all stocks on this measure. value at 86/100 provides secondary support. No single factor falls below the average threshold, which is a constructive sign.
Within the Manufacturing sector, ASML ranks 12th out of 50 peers, placing it in the 76th percentile. At $272.1 billion, the company is a well-established large cap.
Quality Analysis
ASML HOLDING NV's quality score of 89/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 46.1% exceeds the sector median of -2.0%. Gross margins of 51.3% reflect strong pricing power and competitive moats. Operating margins of 31.9% sit above the 3.0% sector average.
Net margins of 26.8% demonstrate that the company efficiently converts revenue into bottom-line profit.
Valuation Assessment
A value score of 86/100 puts ASML in the top 14 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 34.7x, an EV/EBITDA of 25.5x, a price-to-book of 14.2x, a price-to-sales of 9.3x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
ASML HOLDING NV's momentum score of 83/100 places it among the strongest trending stocks in the market. The stock has been outperforming roughly 83 percent of all other companies over the relevant measurement window. The academic literature, starting with Jegadeesh and Titman's seminal 1993 research, demonstrates that stocks with this kind of relative strength tend to continue outperforming for three to twelve months.
Revenue growth of -4.0% is declining, which makes the momentum signal more precarious. A beta of 1.51 means ASML HOLDING NV moves more aggressively than the market, amplifying both gains and losses.
Our entry timing model currently signals Neutral, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- High market sensitivity. A beta of 1.51 means ASML amplifies market moves by 51%. In a broad market sell-off, this stock would likely decline significantly more than the indices.
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support ASML HOLDING NV's rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
ASML HOLDING NV earns a Buy rating with a composite score of 74/100 and 4 out of 5 stars, ranking #23 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position ASML above the majority of the market.
Explore the full ASML analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
