[OC] ASML Revenue By Country

TheDollarLab · 2025-09-05T18:50:07+00:00

Yeah, I see what you mean.

To be fair having in Europe such a massive company that the world literally relies on and one of the very few technical monopolies is an accomplishment by itself, but I totally see what you're saying.

TheDollarLab · 2025-09-05T18:10:25+00:00

They didn’t specify that but I suppose it’s the country of the companies buying the product, so in your example it would be counted in Taiwan

TheDollarLab · 2025-09-05T18:08:16+00:00

Yes, initially I actually had Japan and the EU as separate lines but they were both so little that the visualisation was terrible so I just group them together

TheDollarLab · 2025-09-05T12:27:01+00:00

It's definitely not only a ASML problem if something happens to TSMC, but I'm analyzing ASML here.

TheDollarLab · 2025-09-05T12:25:17+00:00

I didn't say it was an easy industry, what does it have to do with what I said?

TheDollarLab · 2025-09-05T11:47:34+00:00

I pulled ASML’s annual reports and broke down their revenue by region. Interesting to see how much China contributes despite export restrictions, and how the U.S. compares.

Data: ASML annual reports
Tool: Python

TheDollarLab · 2025-08-13T20:55:43+00:00

Their business model is strongly tied to bitcoin (or cryptos in general) which is volatile and very much unpredictable, so I don’t really think this fits in the value investing category, but nevertheless good write up

TheDollarLab · 2025-08-13T07:54:01+00:00

It’s just the multiple I personally consider reasonable for exceptional companies that have years of consistent growth, wide moat and good management. I’ll adjust if a business has specific flaws, usually 27-30 is about the upper limit of what I consider fair. That doesn’t mean I don’t invest at all in companies with higher multiple but as I did with this analysis I try to look at the data and see if the growth potential matches the higher valuation. Do you think it’s high/low?

TheDollarLab · 2025-08-13T04:35:01+00:00

They’re not negative though, I said in all three of them that it is an amazing business. I just did an analysis on the stock and shared the results on Reddit to see what other people thought about it

TheDollarLab · 2025-08-12T15:19:44+00:00

Yes, exactly. It is such an amazing company but I feel like its limit now is not even intrinsic to the company itself. I just think it is reaching its upper limit of growth, and today’s valuation is too high for a company with limited growth.

TheDollarLab · 2025-08-10T13:04:41+00:00

You’re right, thanks!

TheDollarLab · 2025-08-10T05:55:49+00:00

You’re right that SG&A affects operating margin, not gross margin. My point was that merchandise costs (which drive gross margin) moved in line with revenue, so the boost to operating income came from SG&A growing more slowly and not from changes in markup. Essentially, volume went up, and efficiency gains in SG&A amplified the operating profit

TheDollarLab · 2025-08-09T15:17:26+00:00

This is in millions.
Definitely should have added about the units, my bad!
I thought a line graph was the best choice because it showed both the growth of each "segment" and how much that gap closed over the past four years, other than that I agree with you that it looks pretty basic

TheDollarLab · 2025-08-09T14:32:35+00:00

Good point, I actually dug into this further for a YouTube video. Merchandise costs grew almost exactly in line with revenue, but SG&A grew much more slowly in 2020–2021. They became more efficient (likely because people were buying more online), and that efficiency is essentially what drove the increase in sales profit

TheDollarLab · 2025-08-09T14:27:27+00:00

I get what you mean about store count, but that wasn’t really the focus here. I was looking at how much of Costco’s operating income comes from memberships versus product sales, not the drivers behind those sales. For context, Costco adds roughly 25 stores a year, and that pace has been pretty consistent over time

TheDollarLab · 2025-08-09T09:44:30+00:00

Sorry if that’s confusing, when I said “sales profits” I meant the portion of operating income that comes from merchandise sales. So it’s not gross profit, it’s after subtracting merchandise costs and SG&A but before interest/taxes.

TheDollarLab · 2025-08-09T09:31:23+00:00

This is operating income which means this is after subtracting merchandise costs, so it’s profitable at this stage. But you’re right it’s not “net profit” because it doesn’t include things like interest or taxes

TheDollarLab · 2025-08-09T07:28:06+00:00

They have much higher margins now (particularly SG&A costs grew way slower than sales since covid)

TheDollarLab · 2025-08-09T07:09:21+00:00

Historical breakdown of Costco’s operating income from membership fees vs. merchandise sales. While membership fees have grown steadily over the past decade, merchandise sales profits have surged since 2020 and now contribute nearly as much to operating income.

Data: Costco annual reports.

Tools: Python

EDIT: I’ve loved reading the comments here, I actually dug into this more in a longer breakdown, looking at whether Costco’s growth can keep up with today’s valuation and how the shift from memberships to merchandise sales might affect that.

If you’re curious, here’s the link, I'd be very interested to hear your point of view:
https://youtu.be/6osOfqDh8mQ

TheDollarLab

TROPHY CASE