ASML Holding N.V.'s shares display attractive technical aspects to anticipate a comeback of the underlying trend.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 46% by 2022.
● 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.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● Historically, the company has been releasing figures that are above expectations.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 299.7 EUR
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at EUR 378.3.
● The stock is close to a major daily resistance at EUR 386.8, which should be gotten rid of so as to gain new appreciation potential.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● With an expected P/E ratio at 48.95 and 38.7 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● The company is not the most generous with respect to shareholders' compensation.
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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%).