ASE Technology Holding Co (ASX) AI Stock Analysis

• Market Cap: $23.58B
• Dividend Yield: 3.21%
• Average Volume (3M): 6.75M
• Price to Earnings (P/E): 22.7
• Beta (1Y): 1.46
• Revenue Growth: 4.86%
• EPS Growth: 6.44%
• Country: US
• Employees: 96,436
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.11
• Shares Outstanding: 2,211,087,600
• 10 Day Avg. Volume: 5,739,884
• 30 Day Avg. Volume: 6,746,370
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.28
• Enterprise Value/Ebitda: 0.26
• 1Y Price Target: $10.50
• Price Target Upside: -5.32% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: $10.50 ▼(-5.32% Downside)

ASE Technology Holding Co's overall stock score reflects strong financial performance and a positive earnings outlook, despite challenges in operational efficiency and currency impacts. The stock's valuation is reasonable, and the dividend yield is attractive. However, technical indicators suggest a lack of strong momentum, which may limit short-term price appreciation.

ASE Technology Holding Co Business Overview & Revenue Model

Company Description

ASE 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 Money

ASE 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 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.

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.

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.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 11.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 11.09 is below the 20-day moving average (MA) of 11.19, above the 50-day MA of 10.50, and above the 200-day MA of 9.83, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 53.02 is Neutral, neither overbought nor oversold. The STOCH value of 11.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$18.46B	15.32	12.92%	6.38%	5.46%	-26.72%
AMKR	76 Outperform	$7.05B	23.27	7.24%	2.59%	-1.20%	-19.46%
ASX	67 Neutral	$23.58B	22.68	10.97%	3.21%	4.86%	6.44%
ON	67 Neutral	$20.35B	46.01	5.87%	―	-17.93%	-75.83%
STM	67 Neutral	$25.11B	40.95	3.66%	1.23%	-22.97%	-78.58%
GFS	57 Neutral	$20.47B	-170.99	-1.01%	―	-0.65%	-114.26%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

ASE Technology Holding Co Corporate Events

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.

ASE Technology Reports Strong Revenue Growth for July 2025

On August 11, 2025, ASE Technology Holding Co., Ltd. announced its revised unaudited consolidated net revenues for July 2025. The company reported a sequential increase of 4.1% in net revenues from June 2025, reaching NT$51,542 million, though this marks a slight year-over-year decline of 0.1% compared to July 2024. In US dollar terms, the net revenues showed a 6.5% sequential increase and an 11.2% year-over-year growth. The ATM assembly, testing, and material business segment saw significant growth, with net revenues rising by 3.6% sequentially and 15.8% year-over-year in NT dollars, and by 6.0% sequentially and 29.0% year-over-year in US dollars. This financial performance underscores ASE Technology’s robust positioning in the semiconductor industry despite market challenges.

ASE Technology Reports Strong H1 2025 Growth and Positive Outlook

In the first half of 2025, ASE Technology reported a 9% year-over-year increase in consolidated revenues, with significant growth in advanced packaging and testing services. The company anticipates continued momentum in the second half of 2025, driven by increased demand for leading-edge solutions and a general recovery in the semiconductor market. ASE Technology is investing in R&D, human capital, and smart factory infrastructure to support multi-year growth, despite challenges such as forex and tariff uncertainties.

ASE Technology Reports Mixed Q2 2025 Financial Results

On July 31, 2025, ASE Technology Holding Co., Ltd. announced its unaudited financial results for the second quarter of 2025, reporting net revenues of NT$150,750 million, a 7.5% increase year-over-year. Despite the revenue growth, net income attributable to shareholders decreased slightly to NT$7,521 million from NT$7,778 million in the same quarter last year. The company’s gross margin improved marginally to 17.0%, while its operating margin rose to 6.8%. The financial results indicate a mixed performance, with revenue growth but a slight decline in net income, reflecting ongoing challenges in cost management and market conditions.

ASE Technology Reports Strong Revenue Growth for June and Q2 2025

On July 10, 2025, ASE Technology Holding Co., Ltd. announced its revised unaudited consolidated net revenues for June and the second quarter of 2025. The company reported a 1.0% sequential increase and a 5.5% year-over-year growth in net revenues for June, with the second quarter showing a 1.8% sequential rise and a 7.5% year-over-year increase. The ATM assembly, testing, and material business also saw significant growth, with June revenues up 0.3% sequentially and 17.7% year-over-year, and second-quarter revenues increasing by 6.8% sequentially and 19.0% year-over-year. This financial performance highlights ASE’s strong positioning and growth in the semiconductor industry, reflecting increased demand for its services.