ASXASE Technology Holding Co., Ltd.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (3.4×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 12% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ASX?
ASE Technology Holding Co., Ltd. earns 8.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.63 points below what the capital costs: growth destroys value
- Operating margin
- 8.0%
Operating margin · Semiconductors median 7.5% · fiscal year to FY2025
- Cash conversion
- 3.44×
Cash conversion · 2.78× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.85%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 7.4% |
| FY2021 | 11% |
| FY2022 | 12% |
| FY2023 | 7.2% |
| FY2024 | 6.8% |
| FY2025 | 8.0% |
Details›
- Gross marginfiscal year to FY2025
- 18%
- Operating marginfiscal year to FY2025
- 8.0%
- Net marginfiscal year to FY2025
- 6.2%
- Free cash flow margin
- −3.5%
- R&D as % of revenue
- 5.1%
- Revenue, trailing twelve months
- $645.4B
- Free cash flow, trailing twelve months
- −$22.4B
- Net income, trailing twelve months
- $40.0B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.