ASE Technology Holding Co (ASX) AI Stock Analysis

• Market Cap: $34.13B
• Dividend Yield: 2.26%
• Average Volume (3M): 7.09M
• Price to Earnings (P/E): 31.6
• Beta (1Y): 1.57
• Revenue Growth: 8.01%
• EPS Growth: 10.41%
• Country: US
• Employees: 96,436
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.16
• Shares Outstanding: 2,218,071,000
• 10 Day Avg. Volume: 5,783,279
• 30 Day Avg. Volume: 7,089,987
• PEG Ratio: 6.68
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 81.71
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.30
• Enterprise Value/Ebitda: 0.28
• 1Y Price Target: $18.15
• Price Target Upside: 26.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.56
• Revenue Forecast (FY): $20.80B

• Rating: 69 Neutral
• Price Target: $15.50 ▲(7.64% Upside)

ASE Technology Holding Co's overall stock score is driven by solid financial performance and positive earnings call sentiment, despite concerns over negative free cash flow and high valuation. Technical indicators support a bullish trend, contributing positively to the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategy, enhancing ASE's competitive position in the semiconductor industry.

Market Position

The robust growth in the ATM segment underscores ASE's strong market position and ability to capitalize on industry trends, supporting long-term stability.

Profit Margin Improvement

Improved profit margins reflect efficient cost management and operational effectiveness, contributing to sustainable financial health and competitive advantage.

Negative Factors

Negative Free Cash Flow

Negative free cash flow suggests potential liquidity issues, limiting ASE's ability to invest in growth opportunities and manage financial obligations effectively.

Foreign Exchange Impact

Adverse foreign exchange movements can erode profit margins, posing a risk to financial performance and requiring strategic hedging to mitigate impacts.

Increased Operating Expenses

Rising operating expenses, particularly in R&D, could pressure profit margins if not offset by revenue growth, impacting long-term profitability.

ASE Technology Holding Co Business Overview & Revenue Model

Company Description

ASE Technology Holding Co. is a leading provider of semiconductor packaging and testing services, primarily serving the global electronics industry. The company operates through various segments, including assembly and test services for integrated circuits, as well as providing advanced packaging solutions for a wide array of applications ranging from consumer electronics to automotive and industrial sectors. ASE is known for its commitment to innovation and quality, offering a diverse range of products that cater to the needs of its clients in a rapidly evolving technological landscape.

How the Company Makes Money

ASE Technology Holding Co. generates revenue primarily through its semiconductor packaging and testing services. The company's core revenue streams include the assembly and testing of integrated circuits, advanced packaging solutions, and related services. Key factors contributing to its earnings include the high demand for semiconductor components in various industries, such as consumer electronics, automotive, and telecommunications. ASE has established significant partnerships with major semiconductor manufacturers, allowing it to secure long-term contracts and a stable customer base. Additionally, the company's focus on research and development enables it to offer cutting-edge technologies, further enhancing its market position and revenue potential.

ASE Technology Holding Co Financial Statement Overview

Summary

ASE Technology Holding Co demonstrates solid revenue growth and stable profitability margins, indicative of a strong market position in the semiconductor industry. The balance sheet reflects prudent financial management with moderate leverage. However, the negative free cash flow is a concern, pointing to potential challenges in managing capital expenditures and investments.

Income Statement

ASE Technology Holding Co shows a stable revenue growth trajectory with a TTM revenue growth rate of 1.36%. The gross profit margin is consistent at around 16.68%, indicating efficient cost management. However, the net profit margin has slightly decreased to 5.48%, which could suggest rising expenses or competitive pressures. The EBIT and EBITDA margins are stable, reflecting solid operational performance.

Balance Sheet

The company's debt-to-equity ratio is 0.79, which is reasonable for the semiconductor industry, indicating a balanced approach to leveraging. The return on equity (ROE) is 11.02%, showing effective use of equity to generate profits. However, the equity ratio is not explicitly calculated, but the overall asset management appears stable.

Cash Flow

The operating cash flow is strong, but the free cash flow is negative, indicating potential challenges in covering capital expenditures. The free cash flow growth rate is volatile, with a significant negative shift in the latest period. The operating cash flow to net income ratio is 0.47, suggesting adequate cash generation relative to net income, but the negative free cash flow to net income ratio highlights cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	629.74B	595.41B	581.91B	670.87B	570.00B	476.98B
Gross Profit	106.09B	96.93B	91.76B	134.93B	110.37B	77.98B
EBITDA	113.11B	108.30B	103.25B	138.85B	135.97B	89.38B
Net Income	35.26B	32.38B	31.73B	61.50B	60.15B	26.97B
Balance Sheet
Total Assets	842.64B	741.06B	666.58B	707.07B	672.93B	583.86B
Cash, Cash Equivalents and Short-Term Investments	83.41B	85.87B	71.37B	65.60B	79.15B	56.43B
Total Debt	286.76B	201.41B	179.22B	190.07B	215.68B	203.24B
Total Liabilities	503.09B	398.79B	348.47B	387.14B	398.30B	349.60B
Stockholders Equity	317.04B	320.03B	297.83B	301.29B	260.08B	218.63B
Cash Flow
Free Cash Flow	-52.30B	9.11B	60.26B	39.09B	12.38B	17.45B
Operating Cash Flow	106.69B	90.79B	114.42B	110.98B	81.69B	75.07B
Investing Cash Flow	-158.52B	-83.91B	-55.12B	-73.95B	-49.09B	-60.95B
Financing Cash Flow	63.55B	-7.27B	-49.10B	-62.46B	-5.81B	-22.00B

ASE Technology Holding Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.40
• 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 14.4 is below the 20-day moving average (MA) of 14.93, above the 50-day MA of 14.03, and above the 200-day MA of 10.82, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 60.69 is Neutral, neither overbought nor oversold. The STOCH value of 80.35 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
ON	73 Outperform	$22.17B	73.04	3.87%	―	-16.13%	-81.06%
UMC	71 Outperform	$19.49B	15.30	10.97%	6.14%	5.87%	-20.93%
ASX	69 Neutral	$34.13B	31.62	11.17%	2.26%	8.01%	10.41%
AMKR	69 Neutral	$11.58B	37.75	7.27%	0.75%	0.13%	-16.17%
GFS	63 Neutral	$22.46B	―	-0.38%	―	0.25%	-106.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	57 Neutral	$23.05B	46.17	3.00%	1.28%	-17.33%	-76.71%

ASE Technology Holding Co Corporate Events

ASE Technology Reports October Revenue Growth in ATM Segment

On November 10, 2025, ASE Technology Holding Co., Ltd. announced its unaudited consolidated net revenues for October 2025. The company reported net revenues of NT$60,231 million (US$1,980 million), reflecting a slight sequential decline but a year-over-year increase. The ATM business saw a 3.0% sequential and 22.9% year-over-year growth, highlighting the company’s strong performance in this segment. This announcement underscores ASE’s resilience and growth in the semiconductor industry, despite market challenges.

ASE Technology Reports Strong Q3 2025 Earnings with Significant Revenue Growth

On October 30, 2025, ASE Technology Holding Co. reported its third-quarter earnings for 2025, revealing a 12% increase in total net revenues compared to the previous quarter, reaching NT$168,569 million. The company’s net income attributable to shareholders rose by 45% quarter-over-quarter, indicating a strong financial performance. The earnings report highlights ASE’s robust growth in both its ATM and EMS segments, with notable year-over-year improvements in operating income and gross profit. These results underscore ASE’s solid market positioning and its ability to navigate the competitive semiconductor industry effectively.

ASE Technology Announces Strong Q3 2025 Financial Results

ASE Technology Holding Co., Ltd. reported its unaudited financial results for the third quarter of 2025, showing a 5.3% year-over-year increase in net revenues to NT$168,569 million and a sequential rise of 11.8%. The company’s net income attributable to shareholders rose to NT$10,870 million, with basic earnings per share increasing to NT$2.50. Despite a net foreign exchange loss due to the appreciation of the U.S. dollar against the New Taiwan dollar, ASE Technology saw improvements in gross and operating margins, reflecting its robust operational performance.

ASE Technology Reports Strong Revenue Growth for September and Q3 2025

On October 9, 2025, ASE Technology Holding Co., Ltd. announced its unaudited consolidated net revenues for September and the third quarter of 2025. The company reported a 7.3% sequential increase and a 9.0% year-over-year increase in net revenues for September, with third-quarter revenues showing an 11.8% sequential rise and a 5.3% year-over-year growth. The ATM assembly, testing, and material business also saw significant growth, with September revenues increasing by 4.4% sequentially and 20.0% year-over-year. These results indicate a strong performance and positive momentum for ASE Technology in the semiconductor industry, potentially enhancing its market position and stakeholder confidence.

ASE Technology Reports Strong Revenue Growth for August 2025

On September 10, 2025, ASE Technology Holding Co., Ltd. announced its unaudited consolidated net revenues for August 2025, showing a significant increase. The company’s net revenues rose to NT$56,466 million, marking a 9.6% sequential increase and a 6.7% year-over-year growth. This growth reflects ASE’s strong positioning in the semiconductor industry and its ability to adapt to market demands, benefiting stakeholders by enhancing its financial performance.