ASE Technology Holding Co., Ltd.
ASE Technology Holding Co., Ltd. Fundamental Analysis
ASE Technology Holding Co., Ltd. (ASX) shows weak financial fundamentals with a PE ratio of 49.92, profit margin of 7.07%, and ROE of 14.41%. The company generates $666.1B in annual revenue with moderate year-over-year growth of 8.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -99.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ASX's fundamental strength across five key dimensions:
Efficiency Score
WeakASX struggles to generate sufficient returns from assets.
Valuation Score
ModerateASX shows balanced valuation metrics.
Growth Score
ExcellentASX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentASX maintains a strong and stable balance sheet.
Profitability Score
WeakASX struggles to sustain strong margins.
Key Financial Metrics
Is ASX Expensive or Cheap?
P/E Ratio
ASX trades at 49.92 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ASX's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values ASE Technology Holding Co., Ltd. at 6.71 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.76 times EBITDA. This signals the market has high growth expectations.
How Well Does ASX Make Money?
Net Profit Margin
For every $100 in sales, ASE Technology Holding Co., Ltd. keeps $7.07 as profit after all expenses.
Operating Margin
Core operations generate 8.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.41 in profit for every $100 of shareholder equity.
ROA
ASE Technology Holding Co., Ltd. generates $4.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ASE Technology Holding Co., Ltd. generates strong operating cash flow of $316.94B, reflecting robust business health.
Free Cash Flow
ASE Technology Holding Co., Ltd. generates weak or negative free cash flow of $-212.20B, restricting financial flexibility.
FCF Per Share
Each share generates $-97.05 in free cash annually.
FCF Yield
ASX converts -9.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
49.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.73
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How ASX Stacks Against Its Sector Peers
| Metric | ASX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 49.92 | 36.81 | Worse (Expensive) |
| ROE | 14.41% | 974.00% | Weak |
| Net Margin | 7.07% | 5908812370.00% | Weak |
| Debt/Equity | 0.73 | 0.34 | Weak (High Leverage) |
| Current Ratio | 1.15 | 4.93 | Neutral |
| ROA | 4.92% | -294678.00% (disorted) | Weak |
ASX outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ASE Technology Holding Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
32.96%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
48.13%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
86.18%
Industry Style: Growth, Innovation, High Beta
High Growth