Examining ASML Holding NV’s (AMS:ASML) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess ASML’s latest performance announced on 01 July 2018 and compare these figures to its longer term trend and industry movements.
Did ASML beat its long-term earnings growth trend and its industry?
ASML’s trailing twelve-month earnings (from 01 July 2018) of €2.6b has jumped 46% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 14%, indicating the rate at which ASML is growing has accelerated. What’s the driver of this growth? Let’s see whether it is only a result of industry tailwinds, or if ASML Holding has experienced some company-specific growth.
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 13% exceeds the NL Semiconductor industry of 7.8%, 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 16% to 17%.
What does this mean?
ASML Holding’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend 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 01 July 2018. This may not be consistent with full year annual report figures.
To help readers see past 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. For errors that warrant correction please contact the editor at email@example.com.