ASE Technology Holding (DB:2DQ) - Share price, News & Analysis

2DQ fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	5/6
Financial Health	4/6
Dividends	3/6

2DQ Stock Overview

Rewards

Trading at 66.2% below our estimate of its fair value

Revenue is forecast to grow 8.13% per year

Earnings grew by 131.6% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 1.7% per year for the next 3 years

Has a high level of debt

Dividend of 4.52% is not well covered by earnings

Large one-off items impacting financial results

ASE Technology Holding Competitors

Astra International

IDX:ASII

Rp306.7t

Shinko Electric Industries

TSE:6967

JP¥771.4b

JCET Group

SHSE:600584

CN¥37.1b

Amkor Technology

NasdaqGS:AMKR

US$4.5b

Price History & Performance

Summary of all time highs, changes and price drops for ASE Technology Holding
Historical stock prices
Current Share Price	NT$5.95
52 Week High	NT$8.35
52 Week Low	NT$5.55
Beta	1.19
1 Month Change	-8.46%
3 Month Change	1.71%
1 Year Change	-14.39%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	41.63%

Shareholder Returns

	2DQ	DE Semiconductor	DE Market
7D	-5.6%	-4.0%	-3.4%
1Y	-14.4%	-17.6%	-11.1%

Return vs Industry: 2DQ exceeded the German Semiconductor industry which returned -20.2% over the past year.

Return vs Market: 2DQ underperformed the German Market which returned -13.1% over the past year.

Price Volatility

Is 2DQ's price volatile compared to industry and market?
2DQ volatility
2DQ Average Weekly Movement	5.0%
Semiconductor Industry Average Movement	6.9%
Market Average Movement	6.3%
10% most volatile stocks in DE Market	10.2%
10% least volatile stocks in DE Market	3.2%

Stable Share Price: 2DQ is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 2DQ's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1984	n/a	Richard Chang	https://www.aseglobal.com

ASE 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.

ASE Technology Holding Fundamentals Summary

How do ASE Technology Holding's earnings and revenue compare to its market cap?
2DQ fundamental statistics
Market Cap	NT$393.53b
Earnings (TTM)	NT$63.91b
Revenue (TTM)	NT$570.00b

6.2x

P/E Ratio

0.7x

P/S Ratio

Is 2DQ overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2DQ income statement (TTM)
Revenue	NT$570.00b
Cost of Revenue	NT$459.63b
Gross Profit	NT$110.37b
Other Expenses	NT$46.46b
Earnings	NT$63.91b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Apr 28, 2022

Earnings per share (EPS)	15.10
Gross Margin	19.36%
Net Profit Margin	11.21%
Debt/Equity Ratio	75.8%

How did 2DQ perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

28%

Payout Ratio

Valuation

Is ASE Technology Holding undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 2DQ (€5.95) is trading below our estimate of fair value (€17.6)

Significantly Below Fair Value: 2DQ is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 2DQ is good value based on its PE Ratio (6.2x) compared to the German Semiconductor industry average (23.8x).

PE vs Market: 2DQ is good value based on its PE Ratio (6.2x) compared to the German market (18.7x).

Price to Earnings Growth Ratio

PEG Ratio: 2DQ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: 2DQ is good value based on its PB Ratio (1.5x) compared to the DE Semiconductor industry average (2.9x).

Future Growth

How is ASE Technology Holding forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-1.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2DQ's earnings are forecast to decline over the next 3 years (-1.7% per year).

Earnings vs Market: 2DQ's earnings are forecast to decline over the next 3 years (-1.7% per year).

High Growth Earnings: 2DQ's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 2DQ's revenue (8.1% per year) is forecast to grow faster than the German market (5.4% per year).

High Growth Revenue: 2DQ's revenue (8.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 2DQ's Return on Equity is forecast to be low in 3 years time (19.6%).

Past Performance

How has ASE Technology Holding performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

15.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2DQ has a large one-off gain of NT$17.2B impacting its December 31 2021 financial results.

Growing Profit Margin: 2DQ's current net profit margins (11.2%) are higher than last year (5.8%).

Past Earnings Growth Analysis

Earnings Trend: 2DQ's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: 2DQ's earnings growth over the past year (131.6%) exceeds its 5-year average (15% per year).

Earnings vs Industry: 2DQ earnings growth over the past year (131.6%) exceeded the Semiconductor industry 115.9%.

Return on Equity

High ROE: 2DQ's Return on Equity (24%) is considered high.

Financial Health

How is ASE Technology Holding's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2DQ's short term assets (NT$292.4B) exceed its short term liabilities (NT$210.9B).

Long Term Liabilities: 2DQ's short term assets (NT$292.4B) exceed its long term liabilities (NT$187.4B).

Debt to Equity History and Analysis

Debt Level: 2DQ's net debt to equity ratio (47.1%) is considered high.

Reducing Debt: 2DQ's debt to equity ratio has increased from 66.4% to 75.8% over the past 5 years.

Debt Coverage: 2DQ's debt is well covered by operating cash flow (39.2%).

Interest Coverage: 2DQ's interest payments on its debt are well covered by EBIT (31.6x coverage).

Balance Sheet

Dividend

What is ASE Technology Holding current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.52%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2DQ's dividend (4.52%) is higher than the bottom 25% of dividend payers in the German market (1.32%).

High Dividend: 2DQ's dividend (4.52%) is in the top 25% of dividend payers in the German market (4.02%)

Stability and Growth of Payments

Stable Dividend: 2DQ has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 2DQ's dividend payments have increased, but the company has only paid a dividend for 3 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.3%), 2DQ's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (182.1%), 2DQ's dividend payments are not well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Semiconductors industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure

CEO

Richard Chang (74 yo)

no data

Tenure

Mr. Hung-Pen Chang, also known as Richard, has been Vice Chairman of ASE Technology Holding Co. Ltd. since March 2019 and serves as its President since April 2018 and has been its General Manager. He serve...

Leadership Team

Experienced Management: 2DQ's management team is considered experienced (4 years average tenure).

Board Members

Experienced Board: 2DQ's board of directors are considered experienced (4.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/04/28 00:00
End of Day Share Price	2022/04/28 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31