ASML Holding N.V. (ASML) on Decifer

Decifer ranks ASML number 11 of 277 tracked names on durable business quality.

Why it ranks here

• It earns strong returns on the money it puts to work, around 36% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is expected to grow about 27% a year, profits grew 28% over the past year, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• It is not watering down its owners with new shares and it returns cash to shareholders.
• As one of 5 credible suppliers of semiconductor process equipment with returns around 36% and revenue expected to grow about 27%, it ranks high even though this part of the story is already widely recognized.

The current read

The evidence on ASML lines up on the supportive side: options activity is unusually heavy with positioning leaning toward upside. One signal disagrees: the longer-term story is intact, but price is not rewarding it: semiconductor stocks are down 7.3% this week. The drop is large enough to signal near-term caution, worth watching but not the weight of the evidence.

Themes

• Industrials, Reshoring & Transport: ASML is the sole supplier of EUV lithography equipment. Indispensable for any advanced semiconductor node fab globally. No alternative supplier exists.
• Semiconductors & AI Compute: ASML Holding N.V. sits in the fab equipment layer of the Semiconductors & AI Compute story.

Read the full ASML research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.