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Ase Technology Holding (ASX)
:ASX
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ASE Technology Holding Co
(NYSE:ASX)
Rating:67Neutral
Price Target:
$10.50
▲(4.58% Upside)
ASE Technology Holding Co (ASX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.21B
Dividend Yield3.55%
Average Volume (3M)6.86M
Price to Earnings (P/E)20.1
Beta (1Y)1.44
Revenue Growth4.86%
EPS Growth6.44%
CountryUS
Employees96,436
SectorTechnology
Sector Strength83
IndustrySemiconductors
Share Statistics
EPS (TTM)0.11
Shares Outstanding2,211,087,600
10 Day Avg. Volume6,737,755
30 Day Avg. Volume6,861,142
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue0.05
Enterprise Value/Gross Profit0.28
Enterprise Value/Ebitda0.26
Forecast
1Y Price Target
$10.50Price Target Upside4.58% Upside
Rating ConsensusHold
Number of Analyst Covering0
ASE Technology Holding Co Business Overview & Revenue Model
Company DescriptionASE Technology Holding Co., Ltd. is a leading provider of semiconductor packaging and testing services, headquartered in Taiwan. The company operates in the semiconductor industry, which includes the manufacture of integrated circuits and other electronic components. ASE's core products and services encompass a wide range of advanced packaging technologies, including flip chip, system-in-package (SiP), and chip-on-wafer solutions, as well as testing services that ensure the functionality and reliability of semiconductor devices.
How the Company Makes MoneyASE Technology generates revenue primarily through its semiconductor packaging and testing services. The company earns money by charging customers for its packaging solutions, which involve the encapsulation of semiconductor chips in protective materials, and for testing services, which verify the performance of these chips. Key revenue streams include contracts with major semiconductor manufacturers and electronics companies, as well as partnerships with technology firms that require custom packaging solutions. The company's extensive customer base, including industry leaders in consumer electronics, automotive, and telecommunications sectors, contributes significantly to its earnings. Additionally, ASE leverages economies of scale in manufacturing and technological advancements to maintain competitive pricing and improve profit margins.
ASE Technology Holding Co Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call revealed strong growth in key business areas such as ATM and testing, with a positive outlook for the second half of 2025. However, the company's performance was negatively impacted by currency fluctuations, leading to margin pressures and a decline in net income. Despite these challenges, the company remains optimistic about continued growth driven by leading-edge solutions and broad-based semiconductor demand.Q2-2025 Updates
Positive Updates
Strong Revenue Growth in ATM Business
The ATM business saw a significant increase with revenues up 18% year-on-year in the first half of 2025. This includes leading-edge advanced packaging and testing revenue which contributed to over 10% of ATM revenues compared to 6% in 2024.
Testing Business Expansion
The testing business grew 31% year-on-year in the first half of 2025, indicating strong demand and expansion opportunities in this area.
Positive Outlook for Second Half of 2025
The company expects momentum in the ATM business to continue into Q3 and anticipates quarter-to-quarter growth in Q4. The leading-edge advanced packaging and testing revenue is targeted to increase by USD 1 billion.
Consolidated Revenue Growth
Consolidated net revenues for Q2 2025 increased by 2% sequentially and 7% year-over-year, with a 7% sequential and 11% year-over-year increase on a U.S. dollar basis.
Negative Updates
Foreign Exchange Impact
The NT dollar's appreciation against the U.S. dollar had a detrimental effect on financial performance, causing a negative impact of 1.5 and 2.2 percentage points on gross and operating margins respectively at the holding company and ATM levels.
Gross Margin Pressure
Despite revenue growth, the gross margin for the ATM business decreased by 0.7 percentage points sequentially and 0.2 percentage points year-over-year due to currency appreciation and higher utility rates.
Net Income Decline
Net income for Q2 2025 decreased by $0.1 billion sequentially and $0.3 billion year-over-year.
Company Guidance
During the ASE Technology Holdings second quarter 2025 earnings call, the company provided guidance indicating robust growth in several areas despite challenges posed by foreign exchange fluctuations. Consolidated revenue for the third quarter is projected to grow by 12% to 14% in U.S. dollar terms, and by 6% to 8% in New Taiwan dollar terms. ATM business revenue is expected to grow by 9% to 11% in U.S. dollars, and EMS business revenue by 18% to 20%. Gross margins are projected to decrease slightly, with a 1 to 1.2 percentage point decline at the consolidated level. The company anticipates continued strong demand in the advanced packaging and testing segments, driven by AI and HPC market growth. Investment in R&D, human capital, and smart factory infrastructures remains a priority to support long-term growth, with a focus on resource optimization between Taiwan and overseas expansions. Despite currency headwinds impacting margins, ASE is confident about returning to its structural margin range by 2026 through efficiency improvements and strategic initiatives.ASE Technology Holding Co Financial Statement Overview
Summary
ASE Technology Holding Co shows strong revenue growth and stable profitability, but there are concerns regarding operational efficiency and cash flow conversion. The balance sheet is solid with manageable leverage, but declining ROE suggests potential challenges in generating shareholder returns. Overall, the company is financially stable but faces some operational and cash flow challenges.Income Statement
ASE Technology Holding Co has demonstrated consistent revenue growth, with a TTM revenue growth rate of 1.72%. The gross profit margin is stable at 16.68%, and the net profit margin is 5.48%, indicating moderate profitability. However, the EBIT and EBITDA margins have slightly declined compared to previous years, suggesting some pressure on operational efficiency.75
Positive
Balance Sheet
The company maintains a reasonable debt-to-equity ratio of 0.79, reflecting a balanced approach to leverage. The return on equity is 11.02%, which is decent but has decreased from previous years. The equity ratio stands at 38.39%, indicating a solid equity base relative to total assets.70
Positive
Cash Flow
The operating cash flow to net income ratio is 0.47, showing adequate cash generation relative to net income. However, the free cash flow is negative, which is a concern, and the free cash flow to net income ratio is -0.13, indicating challenges in converting earnings into free cash flow.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 621.27B | 595.41B | 581.91B | 670.87B | 570.00B | 476.98B |
| Gross Profit | 103.64B | 96.93B | 91.76B | 134.93B | 110.37B | 77.98B |
| EBITDA | 109.31B | 108.30B | 104.76B | 138.85B | 135.97B | 89.38B |
| Net Income | 34.05B | 32.38B | 31.73B | 61.50B | 60.15B | 26.97B |
Balance Sheet | ||||||
| Total Assets | 765.17B | 741.06B | 666.58B | 707.07B | 672.93B | 583.86B |
| Cash, Cash Equivalents and Short-Term Investments | 76.90B | 85.87B | 71.37B | 65.60B | 79.15B | 56.43B |
| Total Debt | 232.29B | 201.41B | 178.15B | 194.57B | 219.78B | 203.24B |
| Total Liabilities | 450.24B | 398.79B | 348.47B | 387.14B | 398.30B | 349.60B |
| Stockholders Equity | 293.77B | 320.03B | 297.83B | 301.29B | 260.08B | 218.63B |
Cash Flow | ||||||
| Free Cash Flow | -19.71B | 9.11B | 60.26B | 39.09B | 12.38B | 17.45B |
| Operating Cash Flow | 114.12B | 90.79B | 114.42B | 110.98B | 81.69B | 75.07B |
| Investing Cash Flow | -135.05B | -83.91B | -55.12B | -73.95B | -49.09B | -60.95B |
| Financing Cash Flow | 44.23B | -7.27B | -49.10B | -62.46B | -5.81B | -22.00B |
ASE Technology Holding Co Technical Analysis
Positive
10.04
Price Trends
10.15
Negative
9.54
Positive
9.66
Positive
Market Momentum
-0.06
Negative
50.85
Neutral
75.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASX, the sentiment is Positive. The current price of 10.04 is above the 20-day moving average (MA) of 9.89, below the 50-day MA of 10.15, and above the 200-day MA of 9.66, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 50.85 is Neutral, neither overbought nor oversold. The STOCH value of 75.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASX.
ASE Technology Holding Co Risk Analysis
ASE Technology Holding Co disclosed 51 risk factors in its most recent earnings report. ASE Technology Holding Co reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ASE Technology Holding Co Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.02B | 19.71 | 7.37% | 2.98% | -1.20% | -19.46% | |
72 Outperform | $17.18B | 13.45 | 10.98% | 7.19% | 5.46% | -26.72% | |
69 Neutral | $20.85B | 47.57 | 5.72% | ― | -17.93% | -75.83% | |
68 Neutral | $24.38B | 39.82 | 3.72% | 1.13% | -22.97% | -78.58% | |
67 Neutral | $21.21B | 20.13 | 10.97% | 3.55% | 4.86% | 6.44% | |
61 Neutral | $35.62B | 7.50 | -10.94% | 1.87% | 8.86% | -10.27% | |
54 Neutral | $18.69B | 28.15 | -1.01% | ― | -0.65% | -114.26% |
* Technology Sector Average
Performance Comparison
ASX
ASE Technology Holding Co
10.02
0.43
4.48%
AMKR
Amkor
24.58
-7.20
-22.66%
ON
ON Semiconductor
51.25
-25.05
-32.83%
STM
STMicroelectronics
27.16
-3.63
-11.79%
UMC
United Micro
6.72
-1.55
-18.74%
GFS
GlobalFoundries Inc
33.97
-12.05
-26.18%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.