Education
About Us
Working with TipRanks
Follow Us
ASE Technology Holding Co Ltd (ASX)
NYSE:ASX
Top Page
ASE Technology Holding Co
(NYSE:ASX)
74Outperform
ASE Technology Holding Co (ASX) vs. S&P 500 (SPY)
Market Cap
$18.36B
Dividend Yield2.64%
Average Volume (3M)13.62M
Price to Earnings (P/E)18.6
Beta (1Y)1.50
Revenue Growth-0.62%
EPS Growth-1.08%
CountryUS
Employees95,492
SectorTechnology
Sector Strength64
IndustrySemiconductors
Share Statistics
EPS (TTM)0.47
Shares Outstanding2,209,497,800
10 Day Avg. Volume12,089,099
30 Day Avg. Volume13,623,269
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.00Price Target Upside48.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
ASE Technology Holding Co Business Overview & Revenue Model
Company DescriptionASE Technology Holding Co., Limited (ASX) is a global leader in semiconductor manufacturing services, focusing on assembly, testing, and packaging solutions. Headquartered in Taiwan, the company operates across multiple sectors, including consumer electronics, telecommunications, and automotive technologies. It is renowned for providing advanced integrated circuit (IC) packaging and testing services, which are critical in developing and producing semiconductor chips used in various electronic devices.
How the Company Makes MoneyASE Technology Holding Co. generates revenue primarily through providing semiconductor assembly and testing services. The company offers advanced packaging technologies that enable semiconductor manufacturers to enhance the performance and efficiency of their chips. Key revenue streams include wafer probing, IC packaging, final testing, and electronic manufacturing services. ASE Technology partners with major semiconductor companies worldwide, leveraging its expertise and facilities to deliver high-quality, cost-effective solutions. Additionally, the company benefits from the increasing demand for semiconductor components driven by the growth of industries such as consumer electronics, automotive, and telecommunications, which require sophisticated semiconductor devices.
ASE Technology Holding Co Financial Statement Overview
Summary
ASE Technology exhibits strong financial health with consistent revenue growth and stable profitability margins. The company maintains a balanced leverage position, though there is a slight uptick in debt levels that should be monitored. Cash flow management remains robust, ensuring operational flexibility. Overall, ASE Technology is well-positioned in the semiconductor industry, with a strong financial foundation to support future growth initiatives, despite some areas of potential concern in managing debt levels and capital expenditures.Income Statement
ASE Technology has shown strong performance with a consistent increase in revenue, marking a 2.3% growth from 2023 to 2024. The gross profit margin remained solid at 16.1% for 2024, while the net profit margin slightly improved to 5.4%. EBIT and EBITDA margins are robust at 6.6% and 17.6% respectively, indicating efficient cost management and operational performance. However, there was a slight drop in EBIT from the previous year, suggesting potential pressure on operational margins.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with an equity ratio of 43.7% in 2024, indicating a strong asset base relative to liabilities. The debt-to-equity ratio stands at 0.64, demonstrating a moderate level of leverage, albeit with a slight increase in total debt. Return on equity is healthy at 10.0%, indicating effective use of shareholder capital. However, the increase in debt levels could pose a risk if not managed carefully.78
Positive
Cash Flow
Cash flows are strong with a positive free cash flow growth, though declining from the previous year due to increased capital expenditures. Operating cash flow covers net income well, with a ratio of 2.80, showcasing strong cash generation capacity. However, the free cash flow to net income ratio decreased, which may impact the company's ability to reinvest or return capital to shareholders in the future.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 595.41B | 581.91B | 670.87B | 570.00B | 476.98B | Gross Profit |
| 95.69B | 91.76B | 134.93B | 110.37B | 77.98B | EBIT |
| 39.50B | 40.33B | 80.18B | 62.13B | 34.88B | EBITDA |
| 104.74B | 104.76B | 138.85B | 135.97B | 89.38B | Net Income Common Stockholders |
| 32.44B | 31.73B | 61.50B | 60.15B | 26.97B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 76.49B | 71.37B | 65.60B | 79.15B | 56.43B | Total Assets |
| 740.70B | 666.58B | 707.07B | 672.93B | 583.86B | Total Debt |
| 206.06B | 178.15B | 194.57B | 219.78B | 203.24B | Net Debt |
| 129.56B | 110.87B | 136.53B | 143.70B | 151.70B | Total Liabilities |
| 394.91B | 348.47B | 387.14B | 398.30B | 349.60B | Stockholders Equity |
| 323.52B | 297.83B | 301.29B | 260.08B | 218.63B |
| Cash Flow | Free Cash Flow | |||
| 12.17B | 60.26B | 39.09B | 12.38B | 17.45B | Operating Cash Flow |
| 90.79B | 114.42B | 110.98B | 81.69B | 75.07B | Investing Cash Flow |
| -83.91B | -55.12B | -73.95B | -49.09B | -60.95B | Financing Cash Flow |
| -7.27B | -49.10B | -62.46B | -5.81B | -22.00B |
ASE Technology Holding Co Technical Analysis
Neutral
8.73
Price Trends
9.26
Negative
9.77
Negative
9.83
Negative
Market Momentum
-0.13
Negative
51.01
Neutral
91.26
Negative
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 8.73 is above the 20-day moving average (MA) of 8.28, below the 50-day MA of 9.26, and below the 200-day MA of 9.83, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 51.01 is Neutral, neither overbought nor oversold. The STOCH value of 91.26 is Negative, 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $17.70B | 12.77 | 11.65% | 5.06% | 2.22% | -22.39% | |
74 Outperform | $18.36B | 18.64 | 10.32% | 2.64% | -0.62% | -1.08% | |
68 Neutral | $16.76B | 10.93 | 18.97% | ― | -14.19% | -27.42% | |
67 Neutral | $4.31B | 13.68 | 7.76% | 1.90% | -1.93% | -15.55% | |
66 Neutral | $20.58B | 19.73 | 6.33% | 1.33% | -25.35% | -70.00% | |
59 Neutral | $10.65B | 10.45 | -6.56% | 3.01% | 7.31% | -12.18% | |
59 Neutral | $19.39B | 28.15 | -2.42% | ― | -8.69% | -125.98% |
* Technology Sector Average
Performance Comparison
ASX
ASE Technology Holding Co
8.73
-1.22
-12.26%
AMKR
Amkor
17.45
-13.35
-43.34%
ON
ON Semiconductor
39.70
-30.31
-43.29%
STM
STMicroelectronics
22.71
-16.05
-41.41%
UMC
United Micro
7.04
-0.48
-6.38%
GFS
GlobalFoundries Inc
35.07
-13.21
-27.36%
ASE Technology Holding Co Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 0.34%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant advances in the ATM and testing business segments, driven by technological improvements and favorable foreign exchange impacts. However, there were challenges, particularly in the EMS segment due to seasonal declines and increased operating expenses, which affected overall profitability and revenue. The sentiment of the call is balanced between positive and negative elements.Q1-2025 Updates
Positive Updates
Strong Year-Over-Year Growth in ATM Business
Revenues for ATM business were $86.7 billion, a 17% increase annually. Gross profit margin for ATM business was 22.6%, up 1.6 percentage points year-over-year.
Test Business Momentum
Test business continued its strong momentum, growing 2% in a usually seasonally down quarter. Test is expected to reach 19% to 20% of overall ATM revenue by year-end, up from 18%.
Positive Impact from Foreign Exchange
The NT dollar depreciation had a positive impact on the company's gross and operating margins, contributing 0.6 percentage points sequentially and 1.4 percentage points annually.
Improved Gross Margin
Gross margin improved by 0.4 percentage points sequentially and 1.1 percentage points year-over-year, reaching 16.8%.
Advanced Packaging Growth
Leading-edge advanced packaging services accounted for 10% of overall ATM revenues, up from 6% for the full year 2024.
Negative Updates
Decline in EMS Revenues
EMS revenues declined $12.6 billion or 17% sequentially, primarily due to seasonality.
Overall Revenue Decline
Consolidated net revenues declined by 9% sequentially, despite a 12% year-over-year increase.
Increased Operating Expenses
Operating expenses increased by $1.9 billion annually to $15.2 billion, largely due to R&D and labor costs.
Sequential Decline in Operating Profit
Operating profit was $9.7 billion, down $1.5 billion sequentially.
Higher Tax Rate
Effective tax rate for the quarter was 20.6%, higher than the full-year projection of slightly below 20%.
Company Guidance
During the earnings call, the company provided detailed guidance for the second quarter of 2025. In NT dollar terms, they expect their ATM business revenues to grow by 9% to 11% quarter-over-quarter, with a gross margin increase of 140 to 180 basis points. Conversely, the EMS business is anticipated to experience a 10% year-over-year revenue decline, alongside a 100 basis point decrease in operating margin. The company also highlighted key financial metrics for the first quarter, including a 12% year-over-year increase in consolidated net revenues despite a 9% sequential decline, and a gross profit of $24.9 billion, with a gross margin of 16.8%. Operating expenses were reported at $15.2 billion, leading to an operating profit of $9.7 billion. The net income for the quarter was $7.6 billion, with an effective tax rate of 20.6%. Additionally, the company plans to maintain its current investment trajectory, projecting a net debt to equity peak of 60% by the third quarter, while continuing to invest in both leading-edge packaging and AI testing capabilities to capture market share.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.