Yahoo Finance Want To Invest In ASML Holding N.V. (AMS:ASML)? Here's How It Performed Lately
Improvement in profitability and outperformance against the industry can be important characteristics in a stock for some investors. Below, I will assess ASML Holding N.V.'s (ENXTAM:ASML) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.
View our latest analysis for ASML Holding
How Well Did ASML Perform?
ASML's trailing twelve-month earnings (from 31 December 2019) of €2.6b has increased by 0.03% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 13%, indicating the rate at which ASML is growing has slowed down. What could be happening here? Well, let's look at what's occurring with margins and if the entire industry is feeling the heat.
In terms of returns from investment, ASML Holding has invested its equity funds well leading to a 21% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 12% exceeds the NL Semiconductor industry of 6.5%, indicating ASML Holding has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for ASML Holding’s debt level, has increased over the past 3 years from 11% to 16%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While ASML Holding has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research ASML Holding to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for ASML’s future growth? Take a look at our free research report of analyst consensus for ASML’s outlook.
Financial Health: Are ASML’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2019. This may not be consistent with full year annual report figures.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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