Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin44.4%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin42.5%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
A
Years to Pay Off Debt0.4 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt$10.2B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$12.1B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book24.89x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
A
Free Cash Flow$11.4B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income9.0%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$5.7B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About ASML Holding N.V.
ASML Holding N.V. provides lithography solutions for the development, production, marketing, sales, upgrading, and servicing of advanced semiconductor equipment systems. The company offers lithography, metrology, and inspection systems. It also provides extreme ultraviolet lithography systems; and deep ultraviolet lithography systems comprising immersion and dry lithography systems solutions to manufacture various range of semiconductor nodes and technologies. In addition, the company offers metrology and inspection systems, including YieldStar optical metrology systems, a diffraction-based wafer metrology platform to assess the quality of patterns on the wafers; and HMI electron beam solutions to locate and analyze individual chip defects. Further, it provides computational lithography solutions, and lithography systems and control software solutions; and refurbishes and upgrades lithography systems, as well as offers customer support and related services. Additionally, the company offers hardware, software, and services to chipmakers to produce the patterns of integrated circuits. It operates in Japan, South Korea, Singapore, Taiwan, China, rest of Asia, the Netherlands, rest of Europe, the Middle East, Africa, and the United States. The company was formerly known as ASM Lithography Holding N.V. and changed its name to ASML Holding N.V. in 2001. ASML Holding N.V. was founded in 1984 and is headquartered in Veldhoven, the Netherlands.
ASML Holding N.V. provides lithography solutions for the development, production, marketing, sales, upgrading, and servicing of advanced semiconductor equipment systems. The company offers lithography, metrology, and inspection systems. It also provides extreme ultraviolet lithography systems; and deep ultraviolet lithography systems comprising immersion and dry lithography systems solutions to manufacture various range of semiconductor nodes and technologies. In addition, the company offers metrology and inspection systems, including YieldStar optical metrology systems, a diffraction-based wafer metrology platform to assess the quality of patterns on the wafers; and HMI electron beam solutions to locate and analyze individual chip defects. Further, it provides computational lithography solutions, and lithography systems and control software solutions; and refurbishes and upgrades lithography systems, as well as offers customer support and related services. Additionally, the company offers hardware, software, and services to chipmakers to produce the patterns of integrated circuits. It operates in Japan, South Korea, Singapore, Taiwan, China, rest of Asia, the Netherlands, rest of Europe, the Middle East, Africa, and the United States. The company was formerly known as ASM Lithography Holding N.V. and changed its name to ASML Holding N.V. in 2001. ASML Holding N.V. was founded in 1984 and is headquartered in Veldhoven, the Netherlands.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering ASML Holding N.V. at $1,424.75.
The business passes only 2 of 6 of Graham's defensive criteria — well below his required standard.
At $1,424.75, the stock trades at a 1004% premium to its Graham Number of $129.05. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Trading at 5056.4x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
Q3 2026
Q4 2025
Gross Profit %
57.4%▲
52.2%
Operating Margin %
44.4%▲
35.3%
Net Income %
42.5%▲
29.2%
Diluted EPS
12.93▲
7.34
Balance Sheet Highlights
Metric
Q3 2026
Q4 2025
Total Assets
$59.0B
$50.6B
Total Debt
$2.0B▼
$4.4B
Working Capital
$12.1B▲
$6.4B
Years to Pay Debt
0.40
1.55
Cash Flow Highlights
Metric
Q3 2026
Q4 2025
Free Cash Flow
$11.4B▲
$10.9B
Owner Earnings
$5.7B
$3.6B
CapEx % of Net Income
9.0%
16.6%
Income Statement
2026
2025
Tax Rate For Calcs
0
0
Normalized EBITDA
5,435,700
3,686,300
Net Income From Continuing Operation Net Minority Interest
4,960,400
2,839,600
Reconciled Depreciation
262,900
255,200
Reconciled Cost Of Revenue
4,962,200
4,649,500
EBITDA
5,435,700
3,686,300
EBIT
5,172,800
3,431,100
Net Interest Income
68,200
11,200
Normalized Income
4,960,400
2,839,600
Net Income From Continuing And Discontinued Operation
4,960,400
2,839,600
Total Expenses
6,489,200
6,287,000
Total Operating Income As Reported
5,172,800
3,431,100
Diluted Average Shares
383,500
387,000
Basic Average Shares
383,100
386,500
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
4,960,400
2,839,600
Net Income Common Stockholders
4,960,400
2,839,600
Net Income
4,960,400
2,839,600
Net Income Including Noncontrolling Interests
4,960,400
2,839,600
Net Income Continuous Operations
4,960,400
2,839,600
Earnings From Equity Interest Net Of Tax
134,700
16,000
Tax Provision
925,000
618,700
Pretax Income
5,750,700
3,442,300
Other Income Expense
509,700
Earnings From Equity Interest
509,700
Net Non Operating Interest Income Expense
68,200
11,200
Total Other Finance Cost
-68,200
-11,200
Operating Income
5,172,800
3,431,100
Operating Expense
1,527,000
1,637,500
Research And Development
1,174,400
1,262,300
Selling General And Administration
352,600
375,200
Gross Profit
6,699,800
5,068,600
Cost Of Revenue
4,962,200
4,649,500
Total Revenue
11,662,000
9,718,100
Operating Revenue
11,662,000
9,718,100
Balance Sheet
2026
2025
Treasury Shares Number
2,730
Ordinary Shares Number
385,418
385,418
Share Issued
385,418
388,148
Total Debt
1,963,000
4,390,900
Tangible Book Value
16,892,800
14,483,500
Invested Capital
1,963,000
24,003,100
Working Capital
12,121,600
6,352,200
Net Tangible Assets
16,892,800
14,483,500
Common Stock Equity
22,063,900
19,612,200
Total Capitalization
24,026,900
22,321,200
Total Equity Gross Minority Interest
22,063,900
19,612,200
Stockholders Equity
22,063,900
19,612,200
Gains Losses Not Affecting Retained Earnings
135,800
Other Equity Adjustments
135,800
Treasury Stock
2,252,900
Retained Earnings
17,587,300
Additional Paid In Capital
4,107,100
Capital Stock
34,900
Common Stock
34,900
Total Liabilities Net Minority Interest
36,917,300
30,954,400
Total Non Current Liabilities Net Minority Interest
12,013,000
Other Non Current Liabilities
460,200
Non Current Accrued Expenses
432,200
Non Current Deferred Liabilities
9,589,800
3,549,300
Non Current Deferred Revenue
9,300,600
3,366,300
Non Current Deferred Taxes Liabilities
289,200
183,000
Long Term Debt And Capital Lease Obligation
1,963,000
2,709,000
Long Term Debt
1,963,000
2,709,000
Current Liabilities
24,904,300
24,263,900
Other Current Liabilities
24,904,300
24,263,900
Current Deferred Liabilities
16,006,300
Current Deferred Revenue
16,006,300
Current Debt And Capital Lease Obligation
1,681,900
Current Debt
1,681,900
Payables And Accrued Expenses
6,575,700
Current Accrued Expenses
2,567,300
Payables
4,008,400
Total Tax Payable
486,600
Accounts Payable
3,521,800
Total Assets
58,981,200
50,566,600
Total Non Current Assets
21,955,300
19,950,500
Other Non Current Assets
1,547,500
12,700
Defined Pension Benefit
129,900
Non Current Prepaid Assets
914,500
Non Current Deferred Assets
1,688,200
1,719,400
Non Current Deferred Taxes Assets
1,688,200
1,719,400
Non Current Note Receivables
1,782,500
1,653,900
Non Current Accounts Receivable
13,300
Investments And Advances
3,368,600
2,143,300
Investmentin Financial Assets
2,239,400
Available For Sale Securities
2,239,400
Long Term Equity Investment
1,129,200
2,143,300
Goodwill And Other Intangible Assets
5,171,100
5,128,700
Other Intangible Assets
582,500
540,100
Goodwill
4,588,600
4,588,600
Net PPE
8,397,400
8,234,800
Accumulated Depreciation
-4,926,500
Gross PPE
8,397,400
13,161,300
Leases
955,200
Other Properties
8,397,400
5,400
Machinery Furniture Equipment
5,779,600
Land And Improvements
6,421,100
Current Assets
37,025,900
30,616,100
Other Current Assets
1,554,100
350,500
Hedging Assets Current
33,600
Prepaid Assets
861,500
Inventory
11,907,300
11,429,300
Inventories Adjustments Allowances
-772,800
Finished Goods
2,135,100
Work In Process
4,768,500
Raw Materials
5,298,500
Receivables
10,829,400
4,619,300
Other Receivables
1,128,200
1,054,100
Taxes Receivable
145,400
276,100
Loans Receivable
303,000
266,100
Accounts Receivable
9,252,800
3,023,000
Gross Accounts Receivable
3,023,000
Cash Cash Equivalents And Short Term Investments
12,735,100
13,321,900
Other Short Term Investments
4,704,200
405,900
Cash And Cash Equivalents
8,030,900
12,916,000
Cash Equivalents
11,780,700
Cash Financial
1,135,300
Cash Flow
2026
2025
Free Cash Flow
11,350,400
10,939,900
Repurchase Of Capital Stock
-4,071,000
-1,700,000
Repayment Of Debt
-1,000,400
Issuance Of Debt
0
739,200
Issuance Of Capital Stock
36,800
32,700
Capital Expenditure
-447,200
-470,400
End Cash Position
8,030,900
12,916,000
Beginning Cash Position
6,671,900
5,126,500
Effect Of Exchange Rate Changes
3,800
-1,200
Changes In Cash
1,355,200
7,790,700
Financing Cash Flow
-5,755,900
-2,613,300
Cash Flow From Continuing Financing Activities
-5,755,900
-2,613,300
Cash Dividends Paid
-721,300
-619,200
Common Stock Dividend Paid
-619,200
Net Common Stock Issuance
-4,034,200
-1,667,300
Common Stock Payments
-4,071,000
-1,700,000
Common Stock Issuance
36,800
32,700
Net Issuance Payments Of Debt
-1,000,400
-326,800
Net Long Term Debt Issuance
-1,000,400
-326,800
Long Term Debt Payments
-1,000,400
-1,066,000
Long Term Debt Issuance
0
739,200
Investing Cash Flow
-4,686,500
-1,006,300
Cash Flow From Continuing Investing Activities
-4,686,500
-1,006,300
Net Other Investing Changes
-38,900
-39,300
Net Investment Purchase And Sale
-3,794,700
-496,600
Sale Of Investment
800,400
5,300
Purchase Of Investment
-4,595,100
-501,900
Net Business Purchase And Sale
-405,700
1,210,000
Sale Of Business
Purchase Of Business
-405,700
1,210,000
Net Intangibles Purchase And Sale
-33,900
-22,500
Purchase Of Intangibles
-33,900
-22,500
Net PPE Purchase And Sale
-413,300
-447,900
Purchase Of PPE
-413,300
-447,900
Operating Cash Flow
11,797,600
11,410,300
Cash Flow From Continuing Operating Activities
11,797,600
11,410,300
Change In Working Capital
7,009,000
7,640,700
Stock Based Compensation
73,200
55,600
Provisionand Write Offof Assets
79,500
171,500
Asset Impairment Charge
10,700
28,000
Deferred Tax
54,100
118,800
Deferred Income Tax
54,100
118,800
Depreciation Amortization Depletion
262,900
255,200
Depreciation And Amortization
262,900
255,200
Operating Gains Losses
-652,200
300,900
Earnings Losses From Equity Investments
-652,200
300,900
Net Income From Continuing Operations
4,960,400
2,839,600
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $7.5B▲ $11.7B+55.2%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 51.6%▲ 57.4%+5.8pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 68.8%▲ 44.4%-24.5pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 28.3%▲ 42.5%+14.3pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$11.7B/qtr (≈$46.6B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.49x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$11.4B
vs Positive
Operating Cash Flow
$11.8B
Latest quarter · Buffett's cash reality check
ROIC
12.0%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
This company's primary assets are likely intangible (brand, IP, talent, network effects) and don't appear on the balance sheet. Net Assets may significantly understate intrinsic value. ROIC and free cash flow are more reliable indicators of business quality.
⚠️Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.
Peers & Industry
No auto-detected peers for Semiconductor Equipment & Materials. You can manually compare ASML against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.01%
Low — management has little skin in the game
Return on Equity (ROE)
22.5%
Excellent — management generates strong returns on equity
Return on Assets (ROA)
8.4%
Strong — management uses assets efficiently
Share Buybacks (Latest Year)
$6.0B
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-1.1% YoY
Debt is declining — management is deleveraging
Leadership Team
Christophe Fouquet
President, CEO and Chair of the Board of Management
Age 52
Pay: $4,249,898
0.086% of net income
Roger Dassen Ph.
Executive VP, CFO & Member of the Management Board
Age 60
Pay: $2,501,856
0.050% of net income
Frederic Schneider-Maunoury
Executive VP, COO & Member of the Management Board
Age 64
Pay: $2,519,831
0.051% of net income
Jim Kavanagh
Vice President of Investor Relations
Cristina Monteiro
Executive Vice President Human Resources & Organization
Top Institutional Holders
Institution
% Owned
Shares
FMR, LLC
1.41%
5,478,341
Fisher Asset Management, LLC
1.22%
4,737,614
Capital World Investors
0.96%
3,726,679
Invesco Ltd.
0.81%
3,140,208
State Farm Mutual Automobile Insurance Co
0.71%
2,758,173
Capital International Investors
0.63%
2,439,219
Van Eck Associates Corporation
0.63%
2,459,420
JPMORGAN CHASE & CO
0.62%
2,395,859
Risk Analysis
Beta (Market Risk)
1.33
Moderate volatility — moves slightly more than market
Short Interest
0.3% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
0.09x
Conservative balance sheet — low financial risk
Current Ratio
1.49x
Adequate liquidity
52-Week Price Range
Low: $946.11Current: $1,424.75High: $1,999.96
Currently at 45% of 52-week range
ASML Holding N.V. (ASML) fundamental analysis — Overall grade B based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $129.05. Margin of safety: 0%. Gross profit margin: 57.4%. Operating margin: 44.4%. Net margin: 42.5%. Market cap: $549.1B. Sector: Technology. Industry: Semiconductor Equipment & Materials. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.