ASML
ASML Holding N.V.
Technology · Semiconductor Equipment & Materials · Netherlands · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- ASML achieved perfect scores in profitability and dividend factors, reflecting exceptional margins, asset returns, and a disciplined capital-return policy.
- Strong growth across revenue, net income, and EPS in FY2025, combined with a near-debt-free balance sheet, contributed to a high composite score of 78.1/100.
- The Low risk rating is supported by ASML's minimal leverage and robust profitability, making it a well-rounded Dividend Candidate within the model's framework.
Why Not Higher
- The theme factor contributed zero points despite ASML's assignment to two high-profile macro themes, representing a meaningful drag on the total score.
- The momentum factor scored only 12.0/20, limiting the composite score and suggesting that near-term dynamics partially offset the strength of ASML's fundamental factors.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024 to FY2025 by +15.6%, while net income rose +26.9% over the same period and diluted EPS expanded +28.4% from FY2024 to FY2025.
The model rewarded ASML's broad-based acceleration across revenue, earnings, and per-share metrics, with bottom-line growth meaningfully outpacing top-line growth, indicating expanding margins alongside volume gains.
In FY2025, ASML posted an operating margin of 34.6%, a net margin of 29.4%, and a return on assets of 19.0%.
These figures reflect exceptional capital efficiency and pricing power; the model awarded a perfect score in recognition of margins and asset returns that are well above typical industrial or technology-sector benchmarks.
ASML carried a debt-to-equity ratio of just 0.14 in FY2025, against total assets of 50,566,600,000 in FY2025.
The near-negligible leverage ratio signals that ASML finances its large asset base predominantly through equity, which the model treats as a strong indicator of balance-sheet resilience and low financial risk.
Filing evidence currently available does not support a more specific explanation for this factor.
In FY2025, ASML's dividend payout ratio (dividends paid divided by net income) stood at 26.5%.
A payout ratio of 26.5% in FY2025 indicates that ASML returns a meaningful share of earnings to shareholders while retaining the majority for reinvestment, a balance the model appears to reward with a perfect score.
ASML is assigned to the macro themes AI Infrastructure and Semiconductors.
Although ASML is assigned to two high-profile macro themes, this assignment did not translate into a positive score under the model's current methodology; the theme classification reflects the company's strategic positioning, not a scoring outcome.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
ASML Holding N.V. delivered strong broad-based growth in FY2025, with revenue rising 15.6% and net income surging 26.9%, reflecting expanding margins alongside volume gains. The company posted an operating margin of 34.6% and a net margin of 29.4%, alongside a return on assets of 19.0%, underscoring exceptional capital efficiency and pricing power. ASML's balance sheet remains highly conservative with a debt-to-equity ratio of just 0.14, and its dividend payout ratio of 26.5% reflects a disciplined approach to returning capital while retaining the majority of earnings for reinvestment. Positioned within the AI Infrastructure and Semiconductors macro themes, ASML earns a Low risk rating and is classified as a Dividend Candidate.
Plain English
ASML is a highly profitable chip-equipment company that grew its earnings by about 27% last year, keeps very little debt, and pays out a portion of its profits as dividends while holding most back to keep growing.
Bull Case vs. Bear Case
Bull Case
- Revenue grew 15.6% and net income grew 26.9% in FY2025, with diluted EPS expanding 28.4%, showing that profitability is scaling faster than sales — a sign of strong operating leverage.
- ASML's operating margin of 34.6% and net margin of 29.4% in FY2025 are well above typical technology-sector benchmarks, reflecting durable pricing power and capital efficiency.
- With a debt-to-equity ratio of just 0.14 in FY2025, ASML's balance sheet is nearly debt-free relative to its equity base, providing significant financial resilience and flexibility.
Bear Case
- The theme factor scored 0.0 despite ASML's assignment to the high-profile AI Infrastructure and Semiconductors macro themes, indicating that thematic positioning alone did not translate into a scoring benefit under the current model.
- The momentum factor received a below-average score of 12.0/20, suggesting that near-term price or sentiment dynamics may not be as favorable as the company's fundamental profile implies.
- A dividend payout ratio of only 26.5% means income-focused investors receive a relatively modest share of earnings as dividends, with the bulk retained by the company.
What Could Change the Picture
Bullish Triggers
- If ASML's thematic positioning in AI Infrastructure and Semiconductors begins to translate into a higher theme score, the composite rating could improve materially beyond its current level.
- Continued acceleration in earnings-per-share growth — building on the 28.4% expansion seen in FY2025 — would further validate the bull case for long-term compounding.
Bearish Triggers
- A sustained deterioration in operating margins from the current 34.6% level would signal that ASML's pricing power or cost discipline is weakening, undermining the profitability thesis.
- Any meaningful increase in the debt-to-equity ratio from its current near-zero level of 0.14 could raise concerns about balance-sheet conservatism that currently underpins the Low risk rating.
Risk Profile
Low RiskASML carries a debt-to-equity ratio of just 0.14 in FY2025, indicating that its large asset base of over $50 billion is financed predominantly through equity, which the model treats as a strong indicator of low financial risk. The momentum factor scored below the model's top tier, introducing some uncertainty around near-term dynamics, though this does not alter the overall Low risk rating.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.