These Factors Make ASML Holding NV. (NASDAQ:ASML) A Great Investment

I’ve been keeping an eye on ASML Holding NV. (NASDAQ:ASML) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe ASML has a lot to offer. Basically, it is a financially-robust company with a great track record and a buoyant future outlook. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on ASML Holding here.

High growth potential with excellent balance sheet

ASML delivered a bottom-line expansion of 31.40% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did ASML outperformed its past performance, its growth also surpassed the Semiconductor industry expansion, which generated a 28.19% earnings growth. This is what investors like to see!

NasdaqGS:ASML Future Profit Jun 13th 18

ASML is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that ASML manages its cash and cost levels well, which is a key determinant of the company’s health. ASML’s has produced operating cash levels of 0.82x total debt over the past year, which implies that ASML’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NasdaqGS:ASML Historical Debt Jun 13th 18

Next Steps:

For ASML Holding, I’ve compiled three key aspects you should further examine:

1. Valuation: What is ASML worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ASML is currently mispriced by the market.

2. Dividend Income vs Capital Gains: Does ASML return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from ASML as an investment.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ASML? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.