ASML Holding N.V. New York Registry Shares (ASML)

FairStock Score: 72/100 — STEADY

Key Financials

Strengths

• Generates $8.2 billion in annual free cash flow (1.5% yield on market cap)
• High return on equity of 52.2% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.13, providing financial flexibility
• Altman Z-Score of 12.7 confirms minimal bankruptcy risk and strong solvency
• Established organization with 43,882 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($192) with negative 643% margin of safety—limited downside protection
• At $550.8 billion market cap, the law of large numbers makes sustained high growth increasingly difficult

AI Analysis

ASML Holding N.V. New York Registry Shares is a mega-cap technology company valued at $550.8 billion. The business generates $33.7 billion in annual revenue with a 8.2% net margin and $8.2 billion in free cash flow. From a quality standpoint, ASML shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 12.7 confirms fortress-level solvency. On valuation, the stock is commanding a steep 46.5x multiple, with trades far above its Graham Number ($192) with no margin of safety. Growth dynamics show revenue growing at 13.3% and profit growth of 17.1%. Our composite FairStock Score of 68/100 reflects above-average fundamentals overall. The premium valuation demands continued execution and leaves limited room for disappointment.

Bull Case

ASML's dominant market position and scale advantages create a durable moat that supports premium valuation over time. With $8.2 billion in annual free cash flow (1.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 47x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer