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Ase Technology Holding (ASX)
:ASX
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ASE Technology Holding Co
(NYSE:ASX)
Rating:65Neutral
Price Target:
$10.00
▼(-0.10%Downside)
ASE Technology Holding Co (ASX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.33B
Dividend Yield2.75%
Average Volume (3M)9.05M
Price to Earnings (P/E)20.4
Beta (1Y)1.49
Revenue Growth4.86%
EPS Growth6.44%
CountryUS
Employees96,436
SectorTechnology
Sector Strength95
IndustrySemiconductors
Share Statistics
EPS (TTM)0.11
Shares Outstanding2,211,087,600
10 Day Avg. Volume7,032,290
30 Day Avg. Volume9,052,838
Financial Highlights & Ratios
PEG Ratio3.36
Price to Book (P/B)2.12
Price to Sales (P/S)0.00
P/FCF Ratio-65.82
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.50Price Target Upside4.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
ASE Technology Holding Co Business Overview & Revenue Model
Company DescriptionASE 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 MoneyASE 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 Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: -3.10%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a mixed performance with notable revenue growth and strong testing business momentum. However, challenges such as foreign exchange impacts, increased operating expenses, and declining EMS revenues indicate obstacles to maintaining profitability. The sentiment is balanced, with both positive achievements and significant financial pressures outlined.Q2-2025 Updates
Positive Updates
Strong Unconsolidated Revenue Growth
Unconsolidated revenue grew 9% year-on-year in the first half of 2025, with ATM revenues up 18%.
Significant Growth in Testing Business
The testing business grew 31% year-on-year in the first half of 2025, with momentum expected to continue into the second half.
Increased CapEx Investment
Machinery CapEx was USD 1.9 billion, and building factory facility automation was USD 0.9 billion in the first half of 2025, driven by advanced packaging and testing.
Positive Outlook for Second Half 2025
ASE expects ATM business momentum to carry into Q3 and Q4, with leading-edge advanced packaging and testing revenue targeted to increase by USD 1 billion.
Overall Revenue Increase
Consolidated net revenues were TWD 150.8 billion, representing an increase of 2% sequentially and 7% year-over-year.
Negative Updates
Negative Impact of Foreign Exchange Fluctuations
NT dollar appreciated by 4.9% against the USD, negatively impacting gross and operating margins by 1.5 and 2.2 percentage points, respectively.
Decline in EMS Business Revenue
EMS revenues declined 6% sequentially and 7% year-over-year, primarily due to underlying device seasonality.
Increased Operating Expenses
Operating expenses increased by TWD 0.3 billion sequentially and TWD 1.5 billion year-over-year, primarily due to higher R&D staffing and labor-related costs.
Flat or Decreasing Operating Margins
Operating margin was 6.8%, up 0.3 percentage points sequentially but only improved 0.4 percentage points year-over-year, with future pressure from currency impacts expected.
Pressure on Gross Margins Due to Currency
Gross margin is expected to decrease by 1 to 1.2 percentage points quarter-over-quarter in Q3 2025 due to NT dollar appreciation.
Company Guidance
During the second quarter 2025 earnings call for ASE Technology Holdings, Joseph Tung, the CFO, provided guidance for the third quarter of 2025. In U.S. dollar terms, the company expects consolidated revenues to grow by 12% to 14% quarter-over-quarter, whereas in New Taiwan dollar terms, an increase of 6% to 8% is anticipated. The consolidated gross margin is projected to decrease by 1 to 1.2 percentage points, and the operating margin is expected to decrease by 0.1 to 0.3 percentage points quarter-over-quarter. For the ATM business, revenue is forecasted to grow by 9% to 11% in U.S. dollar terms and 3% to 5% in New Taiwan dollar terms, with gross margin expected to decrease by 0.9 to 1.1 percentage points. The EMS business is projected to see revenue growth of 18% to 20% in U.S. dollar terms and 12% to 14% in New Taiwan dollar terms, with an operating margin increase of 0.3 to 0.5 percentage points. The company is also navigating foreign exchange impacts, which have put pressure on margins, but the management remains confident in returning to structural margin levels by 2026.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.78
Positive
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.72
Positive
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.65
Positive
| 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 |
| EBITDA | 108.18B | 108.30B | 104.76B | 138.85B | 135.97B | 89.38B |
| Net Income | 34.31B | 32.38B | 31.73B | 61.50B | 60.15B | 26.97B |
Balance Sheet | ||||||
| Total Assets | 774.18B | 741.06B | 666.58B | 707.07B | 672.93B | 583.86B |
| Cash, Cash Equivalents and Short-Term Investments | 93.53B | 85.87B | 71.37B | 65.60B | 79.15B | 56.43B |
| Total Debt | 224.03B | 201.41B | 178.15B | 194.57B | 219.78B | 203.24B |
| 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
Neutral
10.01
Price Trends
10.02
Negative
9.41
Positive
9.66
Positive
Market Momentum
0.02
Positive
45.85
Neutral
32.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASX, the sentiment is Neutral. The current price of 10.01 is below the 20-day moving average (MA) of 10.34, below the 50-day MA of 10.02, and above the 200-day MA of 9.66, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 45.85 is Neutral, neither overbought nor oversold. The STOCH value of 32.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.58B | 18.41 | 7.37% | 3.37% | -1.20% | -19.46% | |
72 Outperform | $23.74B | 39.41 | 7.85% | ― | -18.28% | -70.98% | |
71 Outperform | $17.35B | 13.75 | 10.98% | 5.46% | 5.46% | -26.72% | |
65 Neutral | $22.33B | 20.40 | 10.97% | 2.75% | 4.86% | 6.44% | |
62 Neutral | $34.53B | 6.79 | -11.66% | 2.11% | 6.09% | -7.36% | |
60 Neutral | $22.97B | 37.08 | 3.72% | 1.22% | -22.97% | -78.58% | |
58 Neutral | $20.23B | 28.15 | -1.69% | ― | -4.42% | -120.96% |
* Technology Sector Average
Performance Comparison
ASX
ASE Technology Holding Co
10.01
1.63
19.45%
AMKR
Amkor
21.75
-5.53
-20.27%
ON
ON Semiconductor
56.82
-12.15
-17.62%
STM
STMicroelectronics
25.06
-3.99
-13.73%
UMC
United Micro
6.81
-0.69
-9.20%
GFS
GlobalFoundries Inc
36.58
-8.19
-18.29%
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.