ASML Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - ASML Holding NV - Alpha Spread
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ASML Holding NV
NASDAQ:ASML

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ASML Holding NV
NASDAQ:ASML
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Price: 833.96 USD 5.85%
Market Cap: 329.1B USD
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
ASML Holding NV

Revenue
25.4B EUR
Cost of Revenue
-12.6B EUR
Gross Profit
12.9B EUR
Operating Expenses
-4.2B EUR
Operating Income
8.7B EUR
Other Expenses
-1.2B EUR
Net Income
7.4B EUR

Margins Comparison
ASML Holding NV Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
NL
ASML Holding NV
NASDAQ:ASML
330B USD
51%
34%
29%
US
Brooks Automation Inc
LSE:0HQ1
417.7B USD
40%
-12%
-24%
US
Applied Materials Inc
NASDAQ:AMAT
163.5B USD
47%
29%
28%
US
Lam Research Corp
NASDAQ:LRCX
104.3B USD
48%
29%
26%
US
KLA Corp
NASDAQ:KLAC
105.1B USD
62%
39%
28%
JP
Tokyo Electron Ltd
TSE:8035
10.6T JPY
47%
27%
21%
NL
ASM International NV
AEX:ASM
29.1B EUR
50%
25%
21%
JP
Advantest Corp
TSE:6857
4.6T JPY
52%
19%
15%
JP
Disco Corp
TSE:6146
3.8T JPY
69%
41%
28%
CN
NAURA Technology Group Co Ltd
SZSE:002371
155.3B CNY
42%
21%
19%
US
Teradyne Inc
NASDAQ:TER
21.8B USD
57%
19%
18%
Country NL
Market Cap 330B USD
Gross Margin
51%
Operating Margin
34%
Net Margin
29%
Country US
Market Cap 417.7B USD
Gross Margin
40%
Operating Margin
-12%
Net Margin
-24%
Country US
Market Cap 163.5B USD
Gross Margin
47%
Operating Margin
29%
Net Margin
28%
Country US
Market Cap 104.3B USD
Gross Margin
48%
Operating Margin
29%
Net Margin
26%
Country US
Market Cap 105.1B USD
Gross Margin
62%
Operating Margin
39%
Net Margin
28%
Country JP
Market Cap 10.6T JPY
Gross Margin
47%
Operating Margin
27%
Net Margin
21%
Country NL
Market Cap 29.1B EUR
Gross Margin
50%
Operating Margin
25%
Net Margin
21%
Country JP
Market Cap 4.6T JPY
Gross Margin
52%
Operating Margin
19%
Net Margin
15%
Country JP
Market Cap 3.8T JPY
Gross Margin
69%
Operating Margin
41%
Net Margin
28%
Country CN
Market Cap 155.3B CNY
Gross Margin
42%
Operating Margin
21%
Net Margin
19%
Country US
Market Cap 21.8B USD
Gross Margin
57%
Operating Margin
19%
Net Margin
18%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
ASML Holding NV Competitors

Country Company Market Cap ROE ROA ROCE ROIC
NL
ASML Holding NV
NASDAQ:ASML
330B USD
51%
18%
35%
22%
US
Brooks Automation Inc
LSE:0HQ1
417.7B USD
-7%
-6%
-3%
-4%
US
Applied Materials Inc
NASDAQ:AMAT
163.5B USD
45%
24%
33%
30%
US
Lam Research Corp
NASDAQ:LRCX
104.3B USD
46%
20%
30%
30%
US
KLA Corp
NASDAQ:KLAC
105.1B USD
88%
19%
36%
31%
JP
Tokyo Electron Ltd
TSE:8035
10.6T JPY
26%
18%
31%
23%
NL
ASM International NV
AEX:ASM
29.1B EUR
17%
13%
19%
15%
JP
Advantest Corp
TSE:6857
4.6T JPY
18%
12%
19%
16%
JP
Disco Corp
TSE:6146
3.8T JPY
26%
19%
37%
35%
CN
NAURA Technology Group Co Ltd
SZSE:002371
155.3B CNY
20%
9%
16%
14%
US
Teradyne Inc
NASDAQ:TER
21.8B USD
19%
14%
18%
16%
Country NL
Market Cap 330B USD
ROE
51%
ROA
18%
ROCE
35%
ROIC
22%
Country US
Market Cap 417.7B USD
ROE
-7%
ROA
-6%
ROCE
-3%
ROIC
-4%
Country US
Market Cap 163.5B USD
ROE
45%
ROA
24%
ROCE
33%
ROIC
30%
Country US
Market Cap 104.3B USD
ROE
46%
ROA
20%
ROCE
30%
ROIC
30%
Country US
Market Cap 105.1B USD
ROE
88%
ROA
19%
ROCE
36%
ROIC
31%
Country JP
Market Cap 10.6T JPY
ROE
26%
ROA
18%
ROCE
31%
ROIC
23%
Country NL
Market Cap 29.1B EUR
ROE
17%
ROA
13%
ROCE
19%
ROIC
15%
Country JP
Market Cap 4.6T JPY
ROE
18%
ROA
12%
ROCE
19%
ROIC
16%
Country JP
Market Cap 3.8T JPY
ROE
26%
ROA
19%
ROCE
37%
ROIC
35%
Country CN
Market Cap 155.3B CNY
ROE
20%
ROA
9%
ROCE
16%
ROIC
14%
Country US
Market Cap 21.8B USD
ROE
19%
ROA
14%
ROCE
18%
ROIC
16%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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