The recent downturn has taken ASML Holding shares close to a medium term support level around 157 EUR. The timing for a long trade in the stock appears good.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Historically, the company has been releasing figures that are above expectations.
● Sales forecast by analysts have been recently revised upwards.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
● Based on current prices, the company has particularly high valuation levels.
● The company benefits from high valuations in earnings multiples.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
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ASML Holding N.V. is one of the world leaders in the manufacturing of lithography equipment for the semiconductor industry. The group's equipment is used to print integrated circuits on very thin silicon chips. Net sales break down by activity as follows:
- sale of lithography equipment (79.6%). The group also offers optical products and components for lithography;
- services (20.4%).
Net sales are distributed geographically as follows: the Netherlands (0.1%), Europe-Middle East-Africa (4.4%), Taiwan (29.3%), South Korea (25.2%), China (26.3%), Japan (2.2%), Singapore (1%), Asia (0.1%) and the United States (11.4%).