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1. Company Snapshot

1.a. Company Description

ASM 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.

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1.b. Last Insights on ASM

Negative drivers behind ASM International NV's recent performance include a 4% year-over-year decline in new orders in the second quarter of 2025, citing uneven order timing from chipmakers making advanced chips. Additionally, the company's Q2 bookings fell below market expectations, pointing to stagnation in the third quarter. Mixed market conditions weighed on demand across segments, contributing to the decline in new orders. Furthermore, the company's share price dropped 20% in the last week, as yearly returns fell more in line with earnings growth.

1.c. Company Highlights

2. ASM International's Q3 2025 Earnings: A Mixed Bag

ASM International's third-quarter 2025 revenue was €800 million, up 8% year-on-year at constant currency, and flat compared to the second quarter. The company's gross margin remained strong at 51.9%, and operating margin was 30.9%. Earnings per share (EPS) came in at €4.23, beating analyst estimates of €3.66. The company's revenue growth was driven by equipment sales, which increased 10% year-on-year, driven by ALD and Epi. SG&A expenses were 10% lower year-on-year, which helped to offset the increase in net R&D expense.

Publication Date: Oct -30

📋 Highlights
  • Revenue Growth:: Q3 2025 revenue of €800 million, +8% YoY at constant currency, with equipment sales up 10% driven by ALD and Epi.
  • Gross Margin Stability:: Maintained strong gross margin of 51.9%, with full-year guidance of ~51% amid product mix shifts.
  • Order Intake Decline:: Q3 orders fell to €637 million, -7% QoQ and YoY, reflecting mixed market demand and China booking drops.
  • 2030 Financial Targets:: Aims for €5.7 billion revenue (12% CAGR) and 47-51% gross margin, with operating margin of 28-32% by 2030.
  • Market Trends:: AI-driven growth in advanced logic/foundry and DRAM expected, while power/analog/wafer remains weak but projected to recover in 2026.

Segment Performance

Order intake was €637 million, down 7% compared to the second quarter and 7% year-on-year. Logic/foundry was the largest segment, followed by memory and power/analog/wafer. The company expects a less stable mix in the fourth quarter, which should bring the gross margin to around 51% for the full year. ASM's 2030 financial targets include revenue growth to more than €5.7 billion, representing a CAGR of at least 12%, and a gross margin range of 47% to 51%.

Market Trends and Outlook

ASM sees a mixed picture, with AI being a bright spot driving growth in advanced logic/foundry and DRAM markets. The company expects a strong increase in gate-all-around related sales and a SAM increase in the move from FinFET to first-generation gate-all-around. It also anticipates a significant increase in its SAM in DRAM driven by technology transitions. For Q4 2025, ASM expects revenue to be in the range of €630 million to €660 million, and for the full year 2025, it expects revenue growth at close to 10% at constant currencies.

Valuation

At current levels, the stock trades at a P/E Ratio of 51.12, EV/EBITDA of 21.92, and ROE of 14.64%. These valuation metrics suggest that the market is pricing in significant growth expectations for the company. Analysts estimate next year's revenue growth at 6.4%, which may be challenging to achieve given the current market trends.

Growth Prospects

ASM has secured new ALD wins for TSV liner applications and is pursuing initiatives to double its served available market by 2030. The company expects growth in GAA in 2026 versus 2025, driven by 2-nanometer production and the start of 1.4-nanometer node pilot production. However, the power/wafer/analog segment is more uncertain, with a potential turning point expected in 2026.

3. NewsRoom

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At €472, Is It Time To Put ASM International NV (AMS:ASM) On Your Watch List?

Nov -28

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Global Chip Stock Rally Founders on Concerns Over Valuations

Nov -05

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ASM International (ENXTAM:ASM) Profit Margin Rise Challenges Valuation Concerns

Oct -30

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SK Hynix, Nvidia, Mercedes, MAG 7 earnings: Trending Stocks

Oct -29

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ASM International Orders Miss Forecasts as Chip Demand Remains Fragmented

Oct -28

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ASM bookings hit by disappointing China, AI demand

Oct -28

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ASM reports third quarter 2025 results

Oct -28

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Are Robust Financials Driving The Recent Rally In ASM International NV's (AMS:ASM) Stock?

Oct -21

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.40%)

6. Segments

Semiconductor Equipment and Services

Expected Growth: 16.0%

The semiconductor industry is expected to grow significantly due to demand from emerging technologies like AI, 5G, and IoT. As a key player, ASM International NV's Semiconductor Equipment and Services segment is poised for slightly higher than average growth due to its comprehensive offerings.

7. Detailed Products

ALD/CVD Equipment

Atomic Layer Deposition (ALD) and Chemical Vapor Deposition (CVD) equipment for semiconductor manufacturing

Epi Equipment

Epitaxy equipment for the growth of semiconductor materials

Pakaging and System Integration

Wafer-level packaging and system integration solutions for semiconductor devices

Process Control Solutions

Solutions for process control and optimization in semiconductor manufacturing

Service and Support

Global service and support for ASM International's products and solutions

8. ASM International NV's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for ASM International NV is moderate due to the presence of alternative technologies and materials in the semiconductor industry.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of ASM International NV's products and the lack of alternative suppliers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers in the market, but ASM International NV's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the semiconductor industry, including the need for significant capital investment and technological expertise.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the semiconductor industry, with multiple players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.03%
Debt Cost 10.32%
Equity Weight 98.97%
Equity Cost 10.32%
WACC 10.32%
Leverage 1.04%

11. Quality Control: ASM International NV passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

517.2$

Current Price

517.2$

Potential

-0.00%

Expected Cash-Flows