NYSE:ASX

Stock Analysis Report

Executive Summary

ASE Technology Holding Co., Ltd. provides a range of semiconductors packaging and testing, and electronic manufacturing services (EMS) in the United States, Taiwan, Asia, Europe, and internationally.

Snowflake

Fundamentals

Good value with reasonable growth potential.


Similar Companies

Share Price & News

How has ASE Technology Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.4%

ASX

-0.01%

US Semiconductor

0.4%

US Market


1 Year Return

25.5%

ASX

21.5%

US Semiconductor

6.9%

US Market

Return vs Industry: ASX exceeded the US Semiconductor industry which returned 21.5% over the past year.

Return vs Market: ASX exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

ASXIndustryMarket
7 Day4.4%-0.01%0.4%
30 Day11.1%-0.4%-1.1%
90 Day12.1%3.3%-0.5%
1 Year28.7%25.5%23.9%21.5%9.3%6.9%
3 Yearn/a80.5%69.8%45.8%36.4%
5 Yearn/a132.4%108.4%62.9%45.1%

Price Volatility Vs. Market

How volatile is ASE Technology Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

20.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ASX ($5.02) is trading below our estimate of fair value ($6.34)

Significantly Undervalued: ASX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ASX is good value based on its PE Ratio (20.2x) compared to the Semiconductor industry average (27.4x).

PE vs Market: ASX is poor value based on its PE Ratio (20.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: ASX is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: ASX is good value based on its PB Ratio (1.7x) compared to the US Semiconductor industry average (2.7x).


Next Steps

Future Growth

How is ASE Technology Holding forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

27.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASX's forecast earnings growth (27.3% per year) is above the savings rate (2.7%).

Earnings vs Market: ASX's earnings (27.3% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ASX's revenue (7.8% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: ASX's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ASX's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

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

2.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ASX's earnings have grown by 2.4% per year over the past 5 years.

Accelerating Growth: ASX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ASX had negative earnings growth (-37.1%) over the past year, making it difficult to compare to the Semiconductor industry average (-6.2%).


Return on Equity

High ROE: ASX's Return on Equity (8%) is considered low.


Return on Assets

ROA vs Industry: ASX's Return on Assets is below or equal to the Semiconductor industry average last year.


Return on Capital Employed

ROCE Improving: ASX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is ASE Technology Holding's financial position?


Financial Position Analysis

Short Term Liabilities: ASX's short term assets (NT$191.7B) exceeds its short term liabilities (NT$160.5B)

Long Term Liabilities: ASX's short term assets (191.7B) exceeds its long term liabilities (156.8B)


Debt to Equity History and Analysis

Debt Level: ASX's debt to equity ratio (89.9%) is considered high

Reducing Debt: ASX's debt to equity ratio has increased from 68.6% to 89.9% over the past 5 years.

Debt Coverage: ASX's debt is well covered by operating cash flow (32.6%).

Interest Coverage: ASX's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet

Inventory Level: ASX has a high level of physical assets or inventory.

Debt Coverage by Assets: ASX's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

3.33%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years3.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate ASX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ASX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if ASX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ASX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ASX is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ASX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of ASE Technology Holding's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Jason Chang (74yo)

1.5yrs

Tenure

0

Mr. C. S. Chang, also known as Jason, has been the Chairman of ASE Technology Holding Co., Ltd. since March 2019 and serves as its Chief Executive Officer since April 2018. Mr. Chang has been the Chairman  ...


Management Age and Tenure

1.5yrs

Average Tenure

60.5yo

Average Age

Experienced Management: ASX's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: ASX's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Jason Chang (74yo)

    Chairman & CEO

    • Tenure: 1.5yrs
  • Richard Chang (72yo)

    Vice Chairman & President

    • Tenure: 0.6yrs
  • Joseph Tung (60yo)

    CFO & Director

    • Tenure: 1.5yrs
  • David Pan (74yo)

    Group Chief of Staff

    • Tenure: 0yrs
  • Tien Yu Wu (61yo)

    COO & Director

    • Tenure: 1.5yrs
  • Kwai Mun Lee (56yo)

    President of Southeast Asia Operations

    • Tenure: 13.6yrs
  • Kenneth Hsiang (48yo)

    Head of Investor Relations

    • Tenure: 0yrs
  • Du-Tsuen Uang (59yo)

    Chief Administration Officer

    • Tenure: 0yrs
  • Shih-Kang Hsu (53yo)

    Chief Executive Officer of Suzhou ASEN Semiconductors Co.

    • Tenure: 9.2yrs
  • Chen-Yen Wei (64yo)

    Chairman of Universal Scientific Industrial & USI Inc and President & COO of USI Shanghai

    • Tenure: 4.5yrs

Board Members

  • Jeffrey Chen (54yo)

    Director

    • Tenure: 1.5yrs
  • Raymond Lo (64yo)

    GM of Test & Kaohsiung Packaging Facility and Director

    • Tenure: 1.5yrs
  • Jason Chang (74yo)

    Chairman & CEO

    • Tenure: 1.5yrs
  • Richard Chang (72yo)

    Vice Chairman & President

    • Tenure: 0.6yrs
  • Joseph Tung (60yo)

    CFO & Director

    • Tenure: 1.5yrs
  • Tien Yu Wu (61yo)

    COO & Director

    • Tenure: 1.5yrs
  • Tien-Szu Chen (57yo)

    Director

    • Tenure: 1.5yrs
  • Rutherford Chang (39yo)

    GM of China Region & Director

    • Tenure: 1.5yrs
  • Shen-Fu Yu (74yo)

    Independent Director

    • Tenure: 1.3yrs
  • Chen-Yen Wei (64yo)

    Chairman of Universal Scientific Industrial & USI Inc and President & COO of USI Shanghai

    • Tenure: 4.5yrs

Company Information

ASE Technology Holding Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ASE Technology Holding Co., Ltd.
  • Ticker: ASX
  • Exchange: NYSE
  • Founded: 1984
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: NT$331.565b
  • Listing Market Cap: NT$10.851b
  • Shares outstanding: 4.25b
  • Website: https://www.aseglobal.com

Number of Employees


Location

  • ASE Technology Holding Co., Ltd.
  • 26 Chin Third Road
  • Nantze Export Processing Zone
  • Kaohsiung
  • 811
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3711TSEC (Taiwan Stock Exchange)YesCommon SharesTWTWDApr 2018
ASXNYSE (New York Stock Exchange)SPONSORED ADSUSUSDMay 2018
ASEH NBMV (Bolsa Mexicana de Valores)SPONSORED ADSMXMXNMay 2018
2DQDB (Deutsche Boerse AG)SPONSORED ADSDEEURMay 2018

Biography

ASE Technology Holding Co., Ltd. provides a range of semiconductors packaging and testing, and electronic manufacturing services (EMS) in the United States, Taiwan, Asia, Europe, and internationally. The c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:51
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.