Does ASML meet Warren Buffett investment criteria?

ASML does not meet all of Warren Buffett's investment criteria, but there are some similarities with his investment philosophy:

1. Business Understanding: ASML operates in a business it understands well, which is a key criterion for Buffett. The company's focus on semiconductor equipment, particularly in lithography, is a niche that ASML has mastered, giving it a competitive advantage.
2. Economic Moat: ASML has an economic moat, which is the ability to maintain a sustainable competitive advantage. The company's technological leadership, patents, and customer relationships provide a strong moat, making it difficult for competitors to gain market share.
3. Return on Equity (ROE): ASML has a high ROE of 32.96%, which is a strong indicator of the company's profitability and efficiency in generating returns for shareholders. This meets Buffett's criterion for a good ROE.
4. Debt-to-Equity Ratio: ASML has a low debt-to-equity ratio of 0.29, which suggests a strong balance sheet and a lower risk of default. This aligns with Buffett's preference for companies with a conservative capital structure.
5. Dividend Yield: ASML does not pay a dividend, which is a departure from Buffett's usual investment strategy. However, Buffett has shown flexibility in this criterion, investing in companies like Coca-Cola, which initially did not pay dividends.
6. Share Buyback: ASML has a history of share buybacks, which Buffett views positively as a way to return value to shareholders. The company has repurchased shares in several instances, indicating a commitment to returning value to shareholders.
7. Sustainable Competitive Advantage: ASML's technological leadership and patent portfolio provide a sustainable competitive advantage, which is a key criterion for Buffett.

In conclusion, while ASML does not meet all of Buffett's investment criteria, it does align with several of them, including a strong ROE, a low debt-to-equity ratio, and a history of share buybacks. Buffett's investment philosophy is not rigid, and he has shown flexibility in his investment approach. Therefore, it is possible that he could find ASML attractive as an investment, depending on his assessment of the company's long-term prospects and the overall market conditions.