About ASE Technology Holding Co.
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.
In addition, it offers IC wire bonding packages; system-in-package products (SiP) and modules; and interconnect materials, as well as assembles automotive electronic products. Further, the company provides a range of semiconductor testing services, including front-end engineering testing, wafer probing, logic/mixed-signal/RF module and SiP/MEMS/discrete final testing, and other test-related services, as well as drop shipment services. Additionally, it develops, constructs, sells, leases, and manages real estate properties; produces substrates; offers information software, equipment leasing, investment advisory, and warehousing management services; processes and sells computer and communication peripherals, electronic components, telecommunications equipment, and motherboards; and imports and exports goods and technology. The company was incorporated in 1984 and is headquartered in Kaohsiung, Taiwan.
ASX operates in the Manufacturing | Electronic Equipment | approximately 97,800 employees | led by CEO Chien S. Chang.
$21.3 billion 21.6x P/E 3.6x P/B 9.2x EV/EBITDA 10.0% ROE -4.5% rev. growth 3.3% yield
ASE Technology Holding Co. earns a Buy rating from our quantitative model with a composite score of 73/100, ranking #42 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is value at 90/100, which places ASX in the top 10 percent of all stocks on this measure. momentum at 85/100 provides secondary support. Investors should note that investment efficiency scores a below-average 37/100, which tempers the overall profile.
Within the Manufacturing sector, ASX ranks 22nd out of 50 peers, placing it in the 56th percentile. At $21.3 billion, the company is a well-established large cap.
Quality Analysis
ASE Technology Holding Co.'s quality score of 75/100 reflects solid profitability that ranks above the majority of stocks. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 10.0% exceeds the sector median of -2.0%. Gross margins of 16.3% suggest a commodity-like business with thin pricing power. Operating margins of 6.8% sit above the 3.0% sector average.
Net margins of 5.7% show the company is profitable, though not with exceptional efficiency.
Valuation Assessment
A value score of 90/100 puts ASX in the top 10 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 21.6x, an EV/EBITDA of 9.2x, a price-to-book of 3.6x, a price-to-sales of 1.2x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
ASE Technology Holding Co.'s momentum score of 85/100 places it among the strongest trending stocks in the market. The stock has been outperforming roughly 85 percent of all other companies over the relevant measurement window. The academic literature, starting with Jegadeesh and Titman's seminal 1993 research, demonstrates that stocks with this kind of relative strength tend to continue outperforming for three to twelve months.
Revenue growth of -4.5% is declining, which makes the momentum signal more precarious. A beta of 1.42 means ASE Technology Holding Co. moves more aggressively than the market, amplifying both gains and losses.
Our entry timing model currently signals Favorable, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support ASE Technology Holding Co.'s rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
ASE Technology Holding Co. earns a Buy rating with a composite score of 73/100 and 4 out of 5 stars, ranking #42 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position ASX above the majority of the market.
Explore the full ASX analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
