ASM International (ASMIY) AI Stock Analysis

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ASM International

(OTC:ASMIY)

75Outperform

ASM International is in a strong financial position with significant revenue growth and high profitability margins, contributing positively to the stock's attractiveness. However, the technical indicators suggest caution due to bearish trends and potential overbought conditions. The valuation appears high, and while the earnings call was positive overall, certain market challenges persist. These factors combined result in a moderately favorable stock score.

ASM International (ASMIY) vs. S&P 500 (SPY)

Market Cap

$21.91B

Dividend Yield0.55%

Average Volume (3M)512.00

Price to Earnings (P/E)29.9

Beta (1Y)1.52

Revenue Growth11.39%

EPS Growth-8.47%

CountryUS

Employees4,558

SectorTechnology

Sector Strength44

IndustrySemiconductors

Share Statistics

EPS (TTM)15.06

Shares Outstanding49,328,550

10 Day Avg. Volume1,537

30 Day Avg. Volume512

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)9.07

Price to Cash Flow (P/CF)52.70

P/FCF Ratio136.20

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$561.00

Price Target Upside25.97% Upside

Rating ConsensusHold

Number of Analyst Covering0

ASM International Business Overview & Revenue Model

Company DescriptionASM International NV, together with its subsidiaries, engages in the research, development, manufacture, marketing, and servicing of equipment and materials that are used to produce semiconductor devices in the United States, Europe, and Asia. Its products include wafer processing deposition systems for single-wafer atomic layer deposition, plasma enhanced chemical vapor deposition, epitaxy, and batch diffusion/furnace systems, as well as provides spare parts and support services. The company also manufactures and sells equipment, which is used in wafer processing, encompassing the fabrication steps in which silicon wafers are layered with semiconductor devices. It serves manufacturers of semiconductor devices and integrated circuits. The company was formerly known as Advanced Semiconductor Materials International NV. ASM International NV was incorporated in 1968 and is headquartered in Almere, the Netherlands.

How the Company Makes MoneyASM International makes money primarily through the sale of its advanced semiconductor equipment and related services. The company's revenue model revolves around providing cutting-edge deposition solutions to semiconductor manufacturers, who integrate these systems into their production lines to enhance device performance and efficiency. Key revenue streams include the sale of new equipment, spare parts, and service contracts. ASMIY has established significant partnerships with leading semiconductor manufacturers worldwide, which helps drive demand for its technology. The company's earnings are also influenced by the cyclical nature of the semiconductor industry and technological advancements that necessitate new equipment purchases.

ASM International Financial Statement Overview

Summary

ASM International shows strong financial health with robust revenue growth, high profitability margins, minimal leverage, and effective cash flow management. These factors position the company well for future growth in the competitive semiconductor industry.

Income Statement

Very Positive

ASM International shows strong financial performance with increasing revenue and profitability. The Gross Profit Margin stands robust at approximately 50.5% for 2024, reflecting efficient production and pricing strategies. Net Profit Margin is healthy at 23.4%, indicating solid bottom-line profitability. Revenue growth from 2023 to 2024 is notable at 11.3%, showcasing solid business expansion. EBIT and EBITDA Margins are commendable at 27.3% and 33.8%, respectively, highlighting operational efficiency and effective cost management.

Balance Sheet

Very Positive

The company's balance sheet reflects financial stability with a very low Debt-to-Equity Ratio of 0.006, indicating minimal leverage and low financial risk. The Return on Equity (ROE) is a strong 18.3%, showcasing effective use of shareholder capital to generate profits. The Equity Ratio is high at 72.6%, suggesting a solid equity base and low reliance on debt financing.

Cash Flow

Very Positive

ASM International demonstrates strong cash flow management with a Free Cash Flow Growth Rate of 27.4% from 2023 to 2024, indicating robust cash generation capabilities. The Operating Cash Flow to Net Income Ratio of 1.31 reflects efficient conversion of income into cash. The Free Cash Flow to Net Income Ratio is 0.78, demonstrating good cash retention after capital expenditures.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.93B	2.63B	2.41B	1.73B	1.33B
	Gross Profit
1.48B	1.27B	1.14B	828.13M	623.57M
	EBIT
802.13M	653.74M	632.43M	491.46M	327.14M
	EBITDA
990.54M	834.57M	846.86M	694.92M	425.11M
	Net Income Common Stockholders
685.73M	752.07M	389.11M	494.71M	285.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
926.50M	637.26M	419.31M	491.51M	435.23M
	Total Assets
5.16B	4.23B	3.75B	2.71B	2.23B
	Total Debt
23.59M	33.56M	28.12M	23.46M	6.22M
	Net Debt
-902.91M	-603.21M	-391.19M	-468.05M	-429.01M
	Total Liabilities
1.41B	999.92M	1.00B	469.33M	375.21M
	Stockholders Equity
3.75B	3.23B	2.75B	2.24B	1.85B
Cash Flow		Free Cash Flow
532.92M	418.18M	333.01M	223.79M	101.56M
	Operating Cash Flow
897.65M	735.89M	541.49M	380.64M	264.35M
	Investing Cash Flow
-349.97M	-289.04M	-474.88M	-114.40M	-144.31M
	Financing Cash Flow
-301.03M	-236.05M	-132.60M	-240.26M	-170.45M

ASM International Technical Analysis

Technical Analysis Sentiment

Negative

Last Price445.35

Price Trends

50DMA

497.46

Negative

100DMA

538.74

Negative

200DMA

585.12

Negative

Market Momentum

MACD

-14.08

Negative

RSI

46.16

Neutral

STOCH

78.25

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASMIY, the sentiment is Negative. The current price of 445.35 is above the 20-day moving average (MA) of 441.68, below the 50-day MA of 497.46, and below the 200-day MA of 585.12, indicating a neutral trend. The MACD of -14.08 indicates Negative momentum. The RSI at 46.16 is Neutral, neither overbought nor oversold. The STOCH value of 78.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASMIY.

ASM International Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LRCX	82 Outperform	$80.09B	18.96	50.42%	1.40%	13.21%	27.25%
AMAT	78 Outperform	$110.13B	17.73	35.19%	1.16%	4.45%	-10.01%
ASML	78 Outperform	$254.81B	32.12	55.21%	0.89%	16.46%	21.29%
ASMIY	75 Outperform	$21.91B	29.86	19.89%	0.55%	11.39%	-8.47%
KLAC	74 Outperform	$82.50B	26.11	96.81%	0.99%	12.19%	20.80%
ASX	74 Outperform	$17.18B	17.10	10.32%	2.84%	-0.62%	-1.08%
Sector *	58 Neutral	$9.82B	10.00	-6.63%	3.09%	7.49%	-11.58%

* Technology Sector Average

Performance Comparison

ASMIY

ASM International

445.35

-121.19

-21.39%

ASX

ASE Technology Holding Co

8.16

-1.95

-19.29%

AMAT

Applied Materials

138.30

-53.33

-27.83%

ASML

ASML Holding

638.69

-256.48

-28.65%

KLAC

KLA

636.36

-6.11

-0.95%

LRCX

Lam Research

63.48

-24.29

-27.67%

ASM International Earnings Call Summary

Earnings Call Date: Feb 25, 2025 | % Change Since: -24.95% | Next Earnings Date: Apr 29, 2025

Earnings Call Sentiment Neutral

The earnings call reflected a strong performance in revenue growth and significant achievements in specific segments like memory and logic/foundry. However, challenges remain in the power, analog, and wafer markets, and a decrease in sales contribution from China is expected. The overall sentiment is balanced with significant highlights and notable lowlights.

Highlights

Strong Revenue Growth in Q4 2024

Revenue increased 27% at constant currencies to €809 million in the fourth quarter, reaching the upper end of the guidance range.

Record-Breaking Full Year Sales

Sales for 2024 increased 12% at constant currencies to a new record high of €2.9 billion.

Improvement in Gross Margin

Gross margin improved from 49.3% in 2023 to 50.5% in 2024, mainly due to a favorable mix and substantial sales contribution from China.

Significant Increase in Memory Sales

Memory sales surged by more than 150% in 2024, particularly driven by HBM-related DRAM demand.

Growing Orders in Logic/Foundry

Logic/foundry accounted for the largest part of Q4 orders, with a significant increase compared to Q3 due to gate-all-around orders for 2-nanometer volume manufacturing.

Strong Performance in Spares & Services

Spares & service sales increased 49% year-on-year at constant currencies.

Lowlights

Decline in Power, Analog, and Wafer Sales

Sales in the power, analog, and wafer segment dropped significantly year-on-year, impacted by ongoing cyclical downturns, including in the silicon carbide market.

Decreased Sales Contribution from China Expected

Sales in China are expected to decrease in 2025, with projections for China equipment sales to represent a lower percentage of total revenue.

Higher Net R&D Expenses

Net R&D expenses in the fourth quarter increased year-on-year by 34% at constant currencies, with an expectation to remain at the upper end of the target range in 2025.

Challenges in the Power/Analog/Wafer Market

The power/analog/wafer market is in a cyclical correction, with no signs of a recovery in the near term.

Company Guidance

During the ASM International Fourth Quarter 2024 earnings call, the company reported a 27% increase in revenue for Q4, reaching €809 million, aligning with the upper end of their guidance range of €770 million to €810 million. For the full fiscal year 2024, sales increased by 12% at constant currencies to a record €2.9 billion. Gross margin improved to 50.3% in Q4, up from 47.9% in the same quarter last year. New orders in Q4 reached €731 million, representing an 8% year-on-year increase, although they were down 12% from Q3 due to order pull-ins. The company's net R&D expenses rose 34% year-on-year in Q4, reflecting increased customer engagements and the amortization of capitalized development expenses. Despite a decrease in power, analog, and wafer sales, ASM saw a 49% year-on-year increase in spares and service sales. The company maintained its guidance for 2025 total revenue in the range of €3.2 billion to €3.6 billion, with expectations for further revenue growth in the first half of 2025.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.