ASE Technology Holding Co. Ltd. American Depositary Shares (each representing Two Common Shares) (ASX)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital, generate cash, and sell at a discount to intrinsic value. ASE Technology has real scale—114,179 employees—and operates in chip packaging, testing, and EMS. In the second quarter of 2026, revenue was $191.1B and net income $21.1B, an 11.03% margin. The data show revenue growth of 26.74% and profit growth of 180.12%, and ROE of 17.01% is respectable. But the quality of those returns is suspect: ROCE is only 4.73%, debt-to-equity is 0.71, and trailing free cash flow is negative $43.8B, a -66.5% FCF yield. An Altman Z-score of 0.33, as FairStock calculates, points to financial fragility. The stock closed at $47.60 on 2026-10-13. FairStock's P/E is 58.05 and P/B is 8.55, while its Graham Number is $40.41, leaving a -17.79% margin of safety—i.e., price above that value benchmark. PEG of 0.32 and EV/EBITDA of 1.71 look optically cheap, but negative cash flow and low ROCE make me cautious about relying on the 180.12% profit growth. The FairStock score is 45/100, and no Lynch category is assigned because only 0 years of filed results are available versus the required 3. I see a cyclical, capital-intensive supplier with some scale advantage, not a wide-moat cash compounder. At this price, the numbers offer more risk than margin of safety.

In plain English: ASE Technology makes packaging and testing services for computer chips and also builds electronic products for other companies. The business is growing quickly and was profitable in its latest reported quarter, but it used more cash than it generated over the past year and carries debt. At the recent close of $47.60, the shares look expensive versus current profits and accounting value, while some growth-based measures look cheaper.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer