ASE Technology Holding Co (ASX) AI Stock Analysis

• Market Cap: $21.13B
• Dividend Yield: 0.1%
• Average Volume (3M): 12.61M
• Price to Earnings (P/E): 20.5
• Beta (1Y): 1.47
• Revenue Growth: 1.32%
• EPS Growth: 4.86%
• Country: US
• Employees: 96,436
• Sector: Technology
• Sector Strength: 79
• Industry: Semiconductors
• EPS (TTM): 0.11
• Shares Outstanding: 2,209,497,800
• 10 Day Avg. Volume: 12,605,884
• 30 Day Avg. Volume: 12,607,645
• PEG Ratio: -6.38
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $13.00
• Price Target Upside: 29.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: $10.50 ▲(4.48%Upside)

ASE Technology Holding Co scores a 70, reflecting strong financial performance and balanced earnings call sentiment. The technical analysis indicates a slight upward trend, while the valuation metrics suggest moderate pricing. The most significant factors are the company's stable income and balance sheet, though cash flow management and EMS segment challenges need attention.

ASE Technology Holding Co Business Overview & Revenue Model

Company Description

ASE Technology Holding Co., Ltd. provides a range of semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, rest of Asia, Europe, and internationally. It offers packaging services, including flip chip ball grid array (BGA) and chip scale package (CSP), advanced chip scale packages, quad flat packages, low profile and thin quad flat packages, bump chip carrier and quad flat no-lead (QFN) packages, advanced QFN packages, plastic BGAs, and 3D chip packages; stacked die solutions in various packages; and copper and silver wire bonding solutions. The company also provides advanced packages, such as flip chip BGA; heat-spreader FCBGA; flip-chip CSP; hybrid FCCSP; flip chip package in package and package on package (POP); advanced single sided substrate; high-bandwidth POP; fan-out wafer-level packaging; SESUB; and 2.5D silicon interposer. In addition, it offers IC wire bonding packages; system-in-package products (SiP) and modules; and interconnect materials, as well as assembles automotive electronic products. Further, the company provides a range of semiconductor testing services, including front-end engineering testing, wafer probing, logic/mixed-signal/RF module and SiP/MEMS/discrete final testing, and other test-related services, as well as drop shipment services. Additionally, it develops, constructs, sells, leases, and manages real estate properties; produces substrates; offers information software, equipment leasing, investment advisory, and warehousing management services; processes and sells computer and communication peripherals, electronic components, telecommunications equipment, and motherboards; and imports and exports goods and technology. The company was incorporated in 1984 and is headquartered in Kaohsiung, Taiwan.

How the Company Makes Money

ASE Technology Holding Co. primarily generates revenue through its comprehensive suite of semiconductor assembly and testing services. The company's key revenue streams include semiconductor packaging, where they provide innovative solutions to protect and enhance semiconductor components, and testing services, which ensure the quality and performance of semiconductor devices. ASE also derives income from its electronics manufacturing services, offering turnkey solutions to original equipment manufacturers (OEMs). Significant factors contributing to ASE's earnings include its strategic partnerships with leading semiconductor companies, its investment in cutting-edge technology to improve service offerings, and its global presence, which allows it to cater to a wide array of clients across different regions.

ASE Technology Holding Co Financial Statement Overview

Summary

ASE Technology Holding Co exhibits solid income statement performance with consistent revenue and profit margins. The balance sheet is strong with a good equity ratio and manageable debt levels. However, the cash flow statement reveals concerns over negative free cash flow, which could impact future operations if not addressed.

Income Statement

ASE Technology Holding Co shows solid performance with a consistent increase in total revenue over the years, reaching 610.76B in TTM (Trailing-Twelve-Months). The gross profit margin is approximately 16.3%, and the net profit margin stands at 5.6% for the TTM, indicating stable profitability. However, there was a slight decline in revenue growth compared to the previous annual period. EBIT and EBITDA margins are strong at 7.0% and 17.7%, respectively, supporting operational efficiency.

Balance Sheet

The company's balance sheet reflects a healthy equity base with a debt-to-equity ratio of approximately 0.72. The return on equity (ROE) is at 11.0%, showing decent profitability relative to shareholder investments. The equity ratio is around 40.2%, indicating a balanced capital structure. Despite this, the increase in total debt over the years suggests a potential risk if not managed carefully.

Cash Flow

Operating cash flow remains robust at 91.99B for the TTM, though free cash flow turned negative recently due to significant capital expenditures. The operating cash flow to net income ratio is healthy at approximately 2.68, indicating strong cash conversion capabilities. However, the negative free cash flow to net income ratio highlights challenges in maintaining liquidity after investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
610.76B	595.41B	581.91B	670.87B	570.00B	476.98B
	Gross Profit
99.71B	96.93B	91.76B	134.93B	110.37B	77.98B
	EBIT
42.82B	40.34B	40.33B	80.18B	62.13B	34.88B
	EBITDA
108.18B	108.30B	104.76B	138.85B	135.97B	89.38B
	Net Income Common Stockholders
34.31B	32.38B	31.73B	61.50B	60.15B	26.97B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
93.53B	76.49B	71.37B	65.60B	79.15B	56.43B
	Total Assets
774.18B	741.06B	666.58B	707.07B	672.93B	583.86B
	Total Debt
224.03B	201.41B	178.15B	194.57B	219.78B	203.24B
	Net Debt
146.93B	124.92B	110.87B	136.53B	143.70B	151.70B
	Total Liabilities
439.15B	398.79B	348.47B	387.14B	398.30B	349.60B
	Stockholders Equity
311.52B	320.03B	297.83B	301.29B	260.08B	218.63B
Cash Flow		Free Cash Flow
-13.91B	9.11B	60.26B	39.09B	12.38B	17.45B
	Operating Cash Flow
91.99B	90.79B	114.42B	110.98B	81.69B	75.07B
	Investing Cash Flow
-106.80B	-83.91B	-55.12B	-73.95B	-49.09B	-60.95B
	Financing Cash Flow
10.16B	-7.27B	-49.10B	-62.46B	-5.81B	-22.00B

ASE Technology Holding Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 10.05 is above the 20-day moving average (MA) of 9.80, above the 50-day MA of 9.13, and above the 200-day MA of 9.77, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 60.29 is Neutral, neither overbought nor oversold. The STOCH value of 84.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASX.

ASE Technology Holding Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UMC	78 Outperform	$20.17B	14.73	11.65%	5.71%	2.22%	-22.39%
AMKR	72 Outperform	$4.91B	15.59	7.76%	1.66%	-1.93%	-15.55%
STM	71 Outperform	$26.51B	24.87	6.33%	1.23%	-25.35%	-70.00%
ASX	70 Outperform	$21.13B	20.52	11.47%	0.10%	1.32%	4.86%
ON	65 Neutral	$21.32B	35.39	7.85%	―	-18.28%	-70.98%
Sector *	62 Neutral	$11.80B	10.10	-7.47%	2.99%	7.37%	-8.16%
GFS	60 Neutral	$20.30B	28.15	-1.69%	―	-4.42%	-120.96%