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ASE Technology Holding Co Ltd (ASX)
NYSE:ASX
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ASE Technology Holding Co
(NYSE:ASX)72Outperform
ASE Technology Holding Co (ASX) vs. S&P 500 (SPY)
Market Cap
$21.68B
Dividend Yield2.36%
Average Volume (3M)10.86M
Price to Earnings (P/E)21.3
Beta (1Y)1.46
Revenue Growth-0.62%
EPS Growth-1.08%
CountryUS
Employees92,894
SectorTechnology
Sector Strength48
IndustrySemiconductors and Equipment
Share Statistics
EPS (TTM)0.47
Shares Outstanding2,207,465,300
10 Day Avg. Volume13,532,722
30 Day Avg. Volume10,857,927
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)130.22
Price to Cash Flow (P/CF)N/A
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 Upside30.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
ASE Technology Holding Co Business Overview & Revenue Model
Company DescriptionASE Technology Holding Co., Ltd. engages in the provision of semiconductor manufacturing services. The company develops and offers turnkey solutions for the front-end engineering test, wafer probing and final test, as well IC packaging, materials and electronic manufactures services. It operates through the following segments: Packaging, Testing, Electronic Manufacturing Services (EMS), Estate, and Others. The Packaging segment offers a broad range of package types such as flip-chip BGA, flip-chip chip scale packages, advanced chip scale packages, quad flat packages, thin quad flat packages, bump chip carrier, quad flat no-lead packages, advanced quad flat no-lead packages, and plastic BGA. The Testing segment provides complete range of semiconductor testing services, including front-end engineering testing, wafer probing, final testing of logic/mixed-signal/RF/(2.5D/3D) module and SiP/ MEMS/Discrete and other test-related services. The EMS segment is comprised of the SMT assembly line which provides activities such as, solder paste stencil printing, component placement, and solder reflow. ASE Technology Holding was founded on April 30, 2018 and is headquartered in Kaohsiung, Taiwan.
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
9.98
Price Trends
10.38
Negative
10.17
Positive
10.26
Positive
Market Momentum
-0.05
Positive
48.34
Neutral
21.54
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 9.98 is below the 20-day moving average (MA) of 10.48, below the 50-day MA of 10.38, and below the 200-day MA of 10.26, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 48.34 is Neutral, neither overbought nor oversold. The STOCH value of 21.54 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $98.12B | 23.23 | 48.75% | 1.13% | 13.21% | 27.25% | |
76 Outperform | $124.20B | 20.00 | 34.06% | 1.05% | 4.45% | -10.01% | |
76 Outperform | $805.34B | 24.55 | 27.36% | 1.02% | 29.98% | 35.76% | |
72 Outperform | $21.68B | 21.31 | 10.03% | 2.36% | -0.62% | -1.08% | |
69 Neutral | $92.89B | 29.40 | 89.51% | 0.90% | 12.19% | 20.80% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
54 Neutral | $92.36B | ― | -18.89% | 2.34% | -2.08% | -1212.72% |
* Technology Sector Average
Performance Comparison
ASX
ASE Technology Holding Co
10.29
-0.10
-0.96%
AMAT
Applied Materials
155.32
-55.08
-26.18%
INTC
Intel
20.81
-23.24
-52.76%
KLAC
KLA
715.81
6.68
0.94%
LRCX
Lam Research
79.05
-17.85
-18.42%
TSM
TSMC
184.28
44.27
31.62%
ASE Technology Holding Co Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -2.54% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While ASE Technology Holdings reported strong growth in leading-edge advanced packaging and testing, and significant capital investments, challenges included declining operating margins, increased expenses, and a muted EMS business environment.Highlights
Revenue Growth in Leading-edge Advanced Packaging
Leading-edge advanced packaging and testing revenues increased to over USD 600 million in 2024, up from USD 250 million in 2023, and are expected to increase by USD 1 billion in 2025.
Testing Business Acceleration
The testing business grew 9% year-on-year in 2024 and 18% year-on-year in Q4 of 2024. The business is projected to continue its accelerated growth into 2025.
Strong Capital Expenditure
Machinery CapEx was USD 1.9 billion in 2024, up by USD 1 billion from 2023, driven by investments in advanced packaging and testing.
Positive Financial Performance
Consolidated net revenues increased 2% in 2024 compared to 2023, with ATM revenues up 3% year-on-year.
Lowlights
Operating Margin Decline
Operating margin declined by 0.3 percentage points sequentially and 0.5 percentage points year-over-year, driven by higher compensation and ramp-up expenses.
Increased Operating Expenses
Operating expenses increased by TWD 6.4 billion in 2024, primarily due to ramp-up of leading-edge advanced packaging services and higher labor-related costs.
EMS Business Performance
The EMS business experienced a muted electronics demand environment with revenues growing only 2% and operating margin declining due to geographical expansion and acquisitions.
Challenges with Currency Fluctuations
Currency fluctuations impacted gross and operating margins negatively by 0.1 percentage points sequentially.
Company Guidance
In the recent call, ASE Technology Holdings provided detailed guidance for 2025, highlighting several key financial metrics. The company anticipates its leading-edge advanced packaging and testing revenues to increase by USD 1 billion, accounting for about 10% of its growth, driven by strong demand in the ATM business expected to outpace the logic semiconductor market. The company's machinery capital expenditures are projected to be the annualized amount of the fourth quarter of 2024, with 60% allocated to leading-edge projects and over 30% to testing. ASE expects its gross profit margin to reach the midpoint of its structural target range of 24% to 30%, despite challenges from inflation and ramp-up costs. Additionally, the company noted that its operating expense ratio should decline as operating leverage becomes more meaningful in the latter part of 2025. The effective tax rate is projected to be slightly below 20% for the coming year, owing to government incentive programs. Overall, ASE remains optimistic about its positioning within the semiconductor market, aiming to capture the AI-led super cycle and further expanding its comprehensive technology offerings.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.