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.
Updated February 16, 2026
Our six-factor quantitative model, which ranks 7,333 publicly traded U.S. companies on quality, value, momentum, investment efficiency, financial stability, and short interest positioning, assigns ASML HOLDING NV a Strong Buy rating with a composite score of 76/100 — placing it at rank #4 in the entire universe.
What makes this rating noteworthy is not any single exceptional factor, but the breadth of strength across the profile. ASML HOLDING NV's dominant factor is quality at 89/100, followed closely by value at 86/100. The one area of relative weakness is investment efficiency at 45/100, though this is more than compensated by strength elsewhere.
At $272.1 billion, ASML HOLDING NV operates in the Manufacturing sector where it ranks 2nd out of 50 stocks — the 96th percentile among its peers. The factor profile suggests the market may be underpricing the risk-reward equation here.
Six-Factor Scorecard
Our model evaluates every U.S. stock across six independently measured dimensions. Each score represents a percentile rank — a score of 80 means the stock ranks higher than 80 percent of all companies on that factor.
Key Financial Metrics
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 Strong Buy rating with a composite score of 76/100 and 5 out of 5 stars, ranking #4 out of 7,333 stocks. The quantitative profile is among the strongest in the market — not because of any single factor, but because of consistent strength across multiple dimensions.
Stocks with this multi-factor profile have historically delivered above-average risk-adjusted returns over three to twelve month horizons. Whether that pattern holds for ASML specifically is, of course, uncertain — quantitative models identify probabilities, not certainties.
Explore the full ASML analysis page for interactive factor breakdowns, DCF valuation, and risk analytics, or view the complete stock rankings.
Disclaimer: This article is generated by Blank Capital Research's quantitative model and is provided for informational purposes only. It does not constitute investment advice, a recommendation, or a solicitation to buy or sell any security. Past performance is not indicative of future results. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
