ASML Holdings NV Shows Strong Fundamentals and Valuation

ASML Holdings NV receives high marks in a recent guru fundamental report. The stock is noted for excellent return on equity and free cash flow, indicating strong long-term performance potential.

Date: 11-03-2025

AI Rating: 7

Analysis of ASML HOLDING NV (ADR)
ASML Holding NV has been analyzed using the Patient Investor model based on Warren Buffett's strategies. The firm scored 86%, which is notably strong and indicates investor interest.

Earnings Predictability: ASML passed the earnings predictability test, which suggests that investors can expect stable and reliable earnings in the future.
Return on Equity (ROE): The report indicates that ASML also passed the return on equity test, a vital measure of how effectively the company is generating profits from its equity. A strong ROE signifies efficient management and profitability, which can enhance investor confidence.
Free Cash Flow (FCF): The firm passed the free cash flow assessment as well. Strong FCF indicates that ASML has sufficient cash to reinvest in its operations, pay dividends, or buy back shares. This is a favorable indicator for potential investors.
Debt Service: The company has passed the debt service test, indicating that it can manage its debt obligations well, further suggesting financial health.

Despite these strong indicators, there is one area where the company failed: the initial rate of return. This could be a concern for investors looking for immediate returns, although the expected return remains a pass. Overall, ASML's strong fundamentals make it a potentially appealing investment for long-term holders, while its initial rate of return could limit its attractiveness to more risk-averse investors. Investors should weigh these factors when considering ASML as a potential investment.

Stocks: ASML