ENXTAM:ASM

Stock Analysis Report

Executive Summary

ASM International NV, together with its subsidiaries, engages in the research, development, manufacture, marketing, and servicing of equipment and materials used to produce semiconductor devices.

Rewards

PE ratio (18.6x) is below the Dutch market (20.5x)

Revenue is forecast to grow 6.65% per year

Risk Analysis

Earnings are forecast to decline by an average of -9.2% per year for the next 3 years

Profit margins (23.6%) are lower than last year (44.4%)



Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has ASM International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ASM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

ASM

4.1%

NL Semiconductor

0.9%

NL Market


1 Year Return

171.8%

ASM

60.1%

NL Semiconductor

13.2%

NL Market

Return vs Industry: ASM exceeded the Dutch Semiconductor industry which returned 60.1% over the past year.

Return vs Market: ASM exceeded the Dutch Market which returned 13.2% over the past year.


Shareholder returns

ASMIndustryMarket
7 Day0%4.1%0.9%
30 Day-0.4%5.0%-0.8%
90 Day23.0%13.9%0.1%
1 Year179.6%171.8%62.7%60.1%18.3%13.2%
3 Year184.7%146.9%114.6%106.5%39.6%23.7%
5 Year271.6%211.8%176.6%157.7%72.2%37.6%

Price Volatility Vs. Market

How volatile is ASM International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ASM International undervalued compared to its fair value and its price relative to the market?

18.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ASM (€101) is trading above our estimate of fair value (€86.84)

Significantly Below Fair Value: ASM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ASM is good value based on its PE Ratio (18.6x) compared to the Semiconductor industry average (28.3x).

PE vs Market: ASM is good value based on its PE Ratio (18.6x) compared to the Dutch market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: ASM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ASM is overvalued based on its PB Ratio (2.7x) compared to the XE Semiconductor industry average (2.4x).


Next Steps

Future Growth

How is ASM International forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASM's earnings are forecast to decline over the next 3 years (-9.2% per year).

Earnings vs Market: ASM's earnings are forecast to decline over the next 3 years (-9.2% per year).

High Growth Earnings: ASM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ASM's revenue (6.6% per year) is forecast to grow faster than the Dutch market (5.5% per year).

High Growth Revenue: ASM's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ASM's Return on Equity is forecast to be low in 3 years time (17.6%).


Next Steps

Past Performance

How has ASM International performed over the past 5 years?

25.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASM has high quality earnings.

Growing Profit Margin: ASM's current net profit margins (23.6%) are lower than last year (44.4%).


Past Earnings Growth Analysis

Earnings Trend: ASM has become profitable over the past 5 years, growing earnings by 25.3% per year.

Accelerating Growth: ASM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ASM had negative earnings growth (-19.6%) over the past year, making it difficult to compare to the Semiconductor industry average (-19.6%).


Return on Equity

High ROE: ASM's Return on Equity (14.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ASM International's financial position?


Financial Position Analysis

Short Term Liabilities: ASM's short term assets (€955.2M) exceed its short term liabilities (€278.7M).

Long Term Liabilities: ASM's short term assets (€955.2M) exceed its long term liabilities (€30.2M).


Debt to Equity History and Analysis

Debt Level: ASM is debt free.

Reducing Debt: ASM had no debt 5 years ago.

Debt Coverage: ASM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ASM has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: ASM has a low level of unsold assets or inventory.

Debt Coverage by Assets: ASM's debt is not covered by short term assets (assets are -38.2x debt).


Next Steps

Dividend

What is ASM International's current dividend yield, its reliability and sustainability?

1.98%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%2.2%markettop25%5.5%industryaverage1.1%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: ASM's dividend (1.98%) isn’t notable compared to the bottom 25% of dividend payers in the Dutch market (2.18%).

High Dividend: ASM's dividend (1.98%) is low compared to the top 25% of dividend payers in the Dutch market (5.55%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ASM has been paying a dividend for less than 10 years.

Growing Dividend: ASM's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.8%), ASM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ASM's dividends in 3 years are forecast to be well covered by earnings (38.7% payout ratio).


Next Steps

Management

What is the CEO of ASM International's salary, the management and board of directors tenure and is there insider trading?

6.6yrs

Average management tenure


CEO

Chuck del Prado (58yo)

11.8yrs

Tenure

€2,260,000

Compensation

Mr. Charles Dean del Prado, also known as Chuck, has been the Chief Executive Officer and President at ASM International NV since March 1, 2008 and serves as its Chairman of the Management Board. Mr. del P ...


CEO Compensation Analysis

Compensation vs Market: Chuck's total compensation ($USD2.51M) is about average for companies of similar size in the Dutch market ($USD2.44M).

Compensation vs Earnings: Chuck's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.6yrs

Average Tenure

62yo

Average Age

Experienced Management: ASM's management team is seasoned and experienced (6.6 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

61yo

Average Age

Experienced Board: ASM's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€211,54023 Apr 19
Petrus Antonius van Bommel
EntityIndividual
Role
Chief Financial Officer
CFO & Member of the Management Board
Shares3,908
Max Price€54.13
Buy€419,61623 Apr 19
Charles del Prado
EntityIndividual
Role
Chief Executive Officer
Chairman of the Management Board
Shares7,752
Max Price€54.13
Sell€109,72223 Apr 19
Petrus Antonius van Bommel
EntityIndividual
Role
Chief Financial Officer
CFO & Member of the Management Board
Shares2,027
Max Price€54.13
Sell€217,60323 Apr 19
Charles del Prado
EntityIndividual
Role
Chief Executive Officer
Chairman of the Management Board
Shares4,020
Max Price€54.13

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Ivo Raaijmakers (62yo)

    CTO and Corporate VP R&D

    • Tenure: 20.4yrs
  • Han Westendorp (63yo)

    Vice President of Corporate Marketing

    • Tenure: 3.9yrs
  • Chuck del Prado (58yo)

    Chairman of the Management Board

    • Tenure: 11.8yrs
    • Compensation: €2.26m
  • Peter van Bommel (62yo)

    CFO & Member of the Management Board

    • Tenure: 9.3yrs
    • Compensation: €1.25m
  • Ralph Otte

    Corporate Vice President of Global Human Resources

    • Tenure: 0yrs
  • Victor Bareño

    Director of Investor Relations

    • Tenure: 0yrs
  • Bruce Ragsdale

    Vice President of Global Operations

    • Tenure: 3.9yrs
  • YK Kim

    Vice President of Global Sales & Service

    • Tenure: 3.8yrs

Board Members

  • Ulrich H. Schumacher (61yo)

    Member of Supervisory Board

    • Tenure: 11.6yrs
  • Jan Lobbezoo (73yo)

    Chairman of the Supervisory Board

    • Tenure: 6.4yrs
  • Marc de Jong (58yo)

    Member of Supervisory Board

    • Tenure: 1.6yrs
  • Martin Cornelis van Pernis (74yo)

    Member of Supervisory Board

    • Tenure: 9.6yrs
  • Stefanie Kahle-Galonske (50yo)

    Member of Supervisory Board

    • Tenure: 2.6yrs

Company Information

ASM International NV's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ASM International NV
  • Ticker: ASM
  • Exchange: ENXTAM
  • Founded: 1968
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: €4.945b
  • Shares outstanding: 48.96m
  • Website: https://www.asm.com

Number of Employees


Location

  • ASM International NV
  • Versterkerstraat 8
  • Almere
  • Flevoland
  • 1322 AP
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASMI.YOTCPK (Pink Sheets LLC)NY REGISTRY SHARESUSUSDMay 1981
AVSNBST (Boerse-Stuttgart)NY REGISTRY SHARESDEEURMay 1981
AVSDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1996
ASMENXTAM (Euronext Amsterdam)YesCommon SharesNLEURDec 1996
0NX3LSE (London Stock Exchange)YesCommon SharesGBEURDec 1996
ASMABATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURDec 1996
AVSBRSE (Berne Stock Exchange)YesCommon SharesCHCHFDec 1996
ASMX.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 1996

Biography

ASM International NV, together with its subsidiaries, engages in the research, development, manufacture, marketing, and servicing of equipment and materials used to produce semiconductor devices. The compa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 20:41
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.