ASML Holding NV Achieves High Rating in Growth Strategy

ASML HOLDING NV (ADR) has received an impressive rating of 88% in a growth investment strategy. This marks a positive outlook for investors, indicating strong fundamentals and valuation characteristics that suggest sustained future growth.

Date: 09-02-2025

AI Rating: 7

Rating Overview

ASML HOLDING NV (ADR) has been rated using the P/B Growth Investor model by Partha Mohanram, achieving a strong score of 88%. This rating is significant as it suggests that the stock has favorable fundamentals and valuation. A score above 80% indicates that the stock is of particular interest, while scores over 90% denote strong interest.

Book-to-Market Ratio

The report states that ASML passed the book-to-market ratio test, indicating that it is a favorable investment relative to its book value. This could lead to positive sentiment around the stock, potentially driving its price higher as investors look for value.

Return on Assets

ASML also passed the return on assets test, showcasing its effective use of resources to generate earnings. A higher return on assets typically suggests operational efficiency, which can attract additional investors and maintain upward price momentum.

Cash Flow Analysis

The cash flow metrics, including cash flow from operations to assets, were all graded as passes. Strong cash flow relative to assets indicates that the company has a solid liquidity position, enhancing its ability to invest in growth opportunities and pay dividends, which investor might appreciate.

Sales Variance

Sales variance also received a pass, indicating that ASML is maintaining stable sales relative to its historical performance. Stability in sales can help sustain investor confidence and contribute positively to the stock price.

Areas of Concern

While ASML has showcased several strengths, there was one criterion it failed: advertising to assets. This could suggest heavy reliance on other forms of demand generation, which might be viewed as a risk. Nevertheless, the overall strength of the other metrics tends to outweigh this concern.

Stocks: ASML