Jefferies has revised its rating for ASM International (ASMIY, Financial), moving it from "Buy" to "Hold." The firm has also adjusted the price target upward to EUR 530 from EUR 490. Analysts at Jefferies anticipate a 1% decline in wafer fab equipment by 2026, contrasting with market expectations of double-digit growth. This prediction is largely driven by an anticipated 16% drop in DRAM wafer fab equipment and further downturns in China's wafer fab market. As a result of this less optimistic outlook, Jefferies has placed both ASMIY and another related company on a "Hold" status.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for ASM International NV (ASMIY, Financial) is $729.26 with a high estimate of $729.26 and a low estimate of $729.26. The average target implies an upside of 15.13% from the current price of $633.41. More detailed estimate data can be found on the ASM International NV (ASMIY) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, ASM International NV's (ASMIY, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for ASM International NV (ASMIY, Financial) in one year is $674.60, suggesting a upside of 6.5% from the current price of $633.41. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the ASM International NV (ASMIY) Summary page.
ASMIY Key Business Developments
Release Date: April 30, 2025
- Revenue: EUR839 million, above the midpoint of guidance (EUR810 million to EUR850 million), increased 26% year on year at constant currencies.
- Equipment Sales: Increased 25% at constant currencies, led by ALD, followed by Epi.
- Spares and Service Sales: Up 32% at constant currencies.
- Gross Margin: Increased to 53.4%, up from 50.3% in Q4 and 52.9% in Q1 of last year.
- SG&A Expenses: Decreased to 9.1% of total revenue, down from 11.4% in Q1 of last year.
- Net R&D: Increased 35% year on year at constant currencies.
- Operating Profit: Increased 41% year on year.
- Currency Translation Loss: EUR40 million.
- Net Results: Included an impairment of EUR250 million of ASMPT stake.
- Order Intake: EUR834 million, up 14% at constant currencies year on year.
- Cash Position: Over EUR1.1 billion, up from EUR927 million at the end of Q4.
- Free Cash Flow: EUR264 million, up from EUR62 million in Q1 last year.
- CapEx: EUR30 million in Q1, expected to be towards the higher end of EUR100 million to EUR180 million for the year.
- Revenue Growth Outlook: 10% to 20% for full year 2025 at constant currency basis.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ASM International NV (ASMIY, Financial) reported Q1 2025 revenue of EUR839 million, exceeding the midpoint of their guidance range.
- Equipment sales increased by 25% at constant currencies, driven by strong demand for ALD and Epi tools.
- Gross margin improved to 53.4%, benefiting from a favorable product mix and cost reduction programs.
- The company reported a strong free cash flow of EUR264 million, supported by improved accounts receivable collections.
- ASM International NV (ASMIY) maintains a solid financial position with over EUR1.1 billion in cash.
Negative Points
- ASM International NV (ASMIY) experienced a EUR250 million impairment of its stake in ASMPT due to reduced market valuation.
- Memory sales were lower compared to the high levels in Q2 and Q3 of the previous year.
- The power/analog/wafer segments continue to face pressure, with sales down year-on-year.
- Currency translation losses amounted to EUR40 million, impacting financial results.
- The outlook for the power/analog/wafer market, including silicon carbide, has deteriorated further.
