ASE Technology Holding (TWSE:3711) - Share price, News & Analysis

Q: What is the Fair Price of 3711 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

3711 (NT$79.1) is trading below our estimate of [[fair value]] (NT$208.85)

3711 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	5/6
Financial Health	4/6
Dividends	3/6

3711 Stock Overview

Rewards

Trading at 62.1% below our estimate of its fair value

Earnings grew by 112.4% over the past year

Risk Analysis

Has a high level of debt

Dividend of 8.85% is not well covered by earnings

Large one-off items impacting financial results

ASE Technology Holding Competitors

United Microelectronics

TWSE:2303

NT$510.5b

Nanya Technology

TWSE:2408

NT$176.8b

Silergy

TWSE:6415

NT$239.0b

Realtek Semiconductor

TWSE:2379

NT$192.1b

Price History & Performance

Summary of all time highs, changes and price drops for ASE Technology Holding
Historical stock prices
Current Share Price	NT$79.10
52 Week High	NT$133.50
52 Week Low	NT$79.00
Beta	1.2
1 Month Change	-23.20%
3 Month Change	-23.58%
1 Year Change	-29.38%
3 Year Change	22.83%
5 Year Change	n/a
Change since IPO	-1.49%

Shareholder Returns

	3711	TW Semiconductor	TW Market
7D	-17.9%	-2.4%	-0.5%
1Y	-29.4%	-20.0%	-13.8%

Return vs Industry: 3711 underperformed the TW Semiconductor industry which returned -18.4% over the past year.

Return vs Market: 3711 underperformed the TW Market which returned -12% over the past year.

Price Volatility

Is 3711's price volatile compared to industry and market?
3711 volatility
3711 Average Weekly Movement	4.3%
Semiconductor Industry Average Movement	5.8%
Market Average Movement	4.7%
10% most volatile stocks in TW Market	8.2%
10% least volatile stocks in TW Market	2.3%

Stable Share Price: 3711 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 3711's weekly volatility (4%) 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?
3711 fundamental statistics
Market Cap	NT$338.91b
Earnings (TTM)	NT$68.34b
Revenue (TTM)	NT$594.92b

5.0x

P/E Ratio

0.6x

P/S Ratio

Is 3711 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
3711 income statement (TTM)
Revenue	NT$594.92b
Cost of Revenue	NT$477.96b
Gross Profit	NT$116.95b
Other Expenses	NT$48.62b
Earnings	NT$68.34b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	15.95
Gross Margin	19.66%
Net Profit Margin	11.49%
Debt/Equity Ratio	78.1%

How did 3711 perform over the long term?

See historical performance and comparison

Dividends

8.8%

Current Dividend Yield

44%

Payout Ratio

Does 3711 pay a reliable dividends?

See 3711 dividend history and benchmarks

When do you need to buy 3711 by to receive an upcoming dividend?
ASE Technology Holding dividend dates
Ex Dividend Date	Jun 29 2022
Dividend Pay Date	Jul 28 2022
Days until Ex dividend	1 day
Days until Dividend pay date	28 days

Does 3711 pay a reliable dividends?

See 3711 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 3711 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3711?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 3711. This is calculated by dividing 3711's market cap by their current preferred multiple.
What is 3711's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	NT$338.91b

3711 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	4x
PEG Ratio	10x

Price to Earnings Ratio vs Peers

How does 3711's PE Ratio compare to its peers?

3711 PE Ratio vs Peers

The above table shows the PE ratio for 3711 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	15.6x
2303 United Microelectronics	7.8x	-13.6%	NT$510.5b
2408 Nanya Technology	6.6x	3.7%	NT$176.8b
6415 Silergy	37.8x	29.0%	NT$239.0b
2379 Realtek Semiconductor	10.1x	2.3%	NT$192.1b
3711 ASE Technology Holding	5x	0.5%	NT$338.9b

Forward PE

Price-To-Earnings vs Peers: 3711 is good value based on its Price-To-Earnings Ratio (5x) compared to the peer average (15.6x).

Price to Earnings Ratio vs Industry

How does 3711's PE Ratio compare vs other companies in the TW Semiconductor Industry?

Price-To-Earnings vs Industry: 3711 is good value based on its Price-To-Earnings Ratio (5x) compared to the TW Semiconductor industry average (13.3x)

Price to Earnings Ratio vs Fair Ratio

What is 3711's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3711 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5x
Fair PE Ratio	15.5x

Price-To-Earnings vs Fair Ratio: 3711 is good value based on its Price-To-Earnings Ratio (5x) compared to the estimated Fair Price-To-Earnings Ratio (15.5x).

Share Price vs Fair Value

What is the Fair Price of 3711 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3711 (NT$79.1) is trading below our estimate of fair value (NT$208.85)

Significantly Below Fair Value: 3711 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 3711 is poor value based on its PEG Ratio (10x)

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Future Growth

How is ASE Technology Holding forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

0.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3711's forecast earnings growth (0.5% per year) is below the savings rate (0.7%).

Earnings vs Market: 3711's earnings (0.5% per year) are forecast to grow slower than the TW market (7.2% per year).

High Growth Earnings: 3711's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3711's revenue (6.9% per year) is forecast to grow slower than the TW market (7.5% per year).

High Growth Revenue: 3711's revenue (6.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 3711's Return on Equity is forecast to be low in 3 years time (18.7%).

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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

20.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3711 has a large one-off gain of NT$17.2B impacting its March 31 2022 financial results.

Growing Profit Margin: 3711's current net profit margins (11.5%) are higher than last year (6.4%).

Past Earnings Growth Analysis

Earnings Trend: 3711's earnings have grown significantly by 20.4% per year over the past 5 years.

Accelerating Growth: 3711's earnings growth over the past year (112.4%) exceeds its 5-year average (20.4% per year).

Earnings vs Industry: 3711 earnings growth over the past year (112.4%) exceeded the Semiconductor industry 67.8%.

Return on Equity

High ROE: 3711's Return on Equity (26.8%) is considered high.

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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: 3711's short term assets (NT$307.0B) exceed its short term liabilities (NT$250.7B).

Long Term Liabilities: 3711's short term assets (NT$307.0B) exceed its long term liabilities (NT$181.7B).

Debt to Equity History and Analysis

Debt Level: 3711's net debt to equity ratio (44.3%) is considered high.

Reducing Debt: 3711's debt to equity ratio has increased from 55% to 78.1% over the past 5 years.

Debt Coverage: 3711's debt is well covered by operating cash flow (45.2%).

Interest Coverage: 3711's interest payments on its debt are well covered by EBIT (37x coverage).

Balance Sheet

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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

8.85%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 3711's dividend (8.85%) is higher than the bottom 25% of dividend payers in the TW market (2.54%).

High Dividend: 3711's dividend (8.85%) is in the top 25% of dividend payers in the TW market (6.32%)

Stability and Growth of Payments

Stable Dividend: 3711 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 3711'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 (44.1%), 3711's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (161.6%), 3711's dividend payments are not well covered by cash flows.

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Management

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

8.0yrs

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: 3711's management team is seasoned and experienced (8 years average tenure).

Board Members

Experienced Board: 3711's board of directors are considered experienced (4.3 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	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31