Rankings Semiconductors ASE Technology
ASE Technology
64
15070100
A view of the same findings, not a new score. How it works
A good business with a real question mark: the price, a crack, or both.
Biggest deductions
- Multiples vs own history−16
- Margin and ROIC−5
- Capital allocation and capital intensity−4
Strengths
- Raised guidance (LEAP)+2
- Q3 above guidance+2
How the score is built
From 100 to 64, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 39.17 USD
- Median analyst target
- 54.94 USD
- Upside to median
- +40.3%
- Analysts
- 2
- Target range
- 51.88 – 58.00 USD
- 52-week change
- +145%
- P/E (trailing)
- 38.7
- Forward P/E
- 21.7
- PEG
- n/a
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 4 findings−13 of −30
- −5Margin and ROICGross margin 19.5%, operating margin 9.8% and net margin 8.6% (TTM); ROIC is 10.1% vs a WACC of 11.7% and was only 7.2-8.3% in 2023-2025. Margins are currently at 2021-2022 levels, not stronger.
- −4Capital allocation and capital intensityInvestments of 211bn TWD (TTM) exceed operating cash flow of 169bn TWD, so FCF is -42bn TWD; 2026 capex has been raised by $2bn to about $10.5bn, and management says FCF may stay negative for some time. The dividend of 23bn TWD is thus paid with borrowed money.
- −2Quality of growthRevenue only grew from TWD 570bn to 645bn from 2021 to 2025 (about 3% a year), and about 37% of the group is low-margin EMS. Growth in 2026 is concentrated in advanced AI packaging (LEAP).
- −2MoatASE is the world's largest OSAT, but the most advanced AI packaging (CoWoS) sits with the customer TSMC itself, and ASE competes with Amkor and Chinese suppliers for the rest; the ATM gross margin of 27.3% is a record, but low relative to the chipmakers.
Price
Today's multiples against the company's own history and its peers. · 2 findings−20 of −35
- −16Multiples vs own historyP/E 47.6 (TTM) vs 6.5–26.9 in 2021–2025, EV/EBITDA 22.2 vs 4.3–11.4, P/B 6.9 vs 1.3–2.9 and P/S 4.1 vs 0.6–1.7; forward P/E is 27.9. The stock is up 231% in a year and has been re-rated from a cyclical low-margin OSAT to an AI stock.
- −4FCF yieldFCF yield is negative (-1.4%) vs 1.6-10.4% in 2021-2024, and is expected to stay negative because of the raised capex.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings−10 of −35
- −4Geopolitics and tariffsMost of the production is in Taiwan, so ASE is directly exposed to tensions between China and Taiwan and to US Section 232 tariffs on semiconductors; there is no significant production relocation that removes that risk.
- −3Capacity and debt riskNet debt has risen from TWD 108bn (2023) to TWD 190bn (debt/EBITDA 2.1), and capex has nearly tripled since 2024 on expected AI demand. On the Q2 call, analysts questioned the visibility behind the target of doubling LEAP revenue in 2027.
- −2Cycle and sentimentThe price is +231% over 52 weeks, but is now below the 50-day average ($39.5 vs $40.9); beta 1.53, and EPS fell 48% in the latest downturn (2023).
- −1DilutionThe share count rose 1.6% in a year without buybacks, and no treasury shares have been bought since 2022.
Plus
Only documented strengths. · 2 findings+4 of +15
- +2Raised guidance (LEAP)LEAP revenue in 2026 is about $200m above the $3.5bn target, and management aims to double it in 2027; Q2 net income rose 180% to TWD 21.1bn.
- +2Q3 above guidanceQ3 revenue was TWD 244.2bn (+27.8% quarter over quarter, +44.8% year over year) vs guidance of +21–22%, and ATM revenue TWD 151.5bn (+20%) vs guidance of +11–13%.
Caveats
What the score does not capture, or where the data is weak.
ADR on NYSE (ASX); the accounts are in TWD, so the TWD/USD exchange rate affects returns. stockanalysis has no analyst coverage (forecast returns 404), so price targets and revisions are missing. The Q3 2026 report is due 29 Oct 2026; only Q3 revenue (monthly figures) is included. About a third of revenue is EMS (USI) with low margin, so group margins understate the packaging and testing business (ATM). The 'Semiconductors' industry is chosen; chip packaging/testing has no category of its own. cyclical = true, because earnings follow the chip industry's inventory and utilization cycle (EPS -48% in 2023). 13F purchases give no points.
Also in Semiconductors
The highest scores in the same industry.
