| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 19 | 53.2x | 17.4x | Bottom tier | |
Growth | 82 | 16.6% | 7.1% | Top tier | |
Quality | 39 | 9.1% | 4.5% | Bottom tier | |
Safety | 53 | 1.4x | 2.6x | Around median | |
Capital Return | 18 | 0.69% | 0.18% | Bottom tier | |
Momentum | 100 | 235.7% | 1.3% | Top tier | |
Sentiment | 36 | 2 | 3 | Bottom tier |
The floor: what the company is worth if growth stopped today
10-year US Treasury yield 5.31% as of 2026-10-05. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
ASE Technology Holding operates in semiconductor assembly, packaging, and testing services through its ATM segment, alongside electronics manufacturing services through its EMS segment. The company benefits from the increasing complexity of artificial intelligence hardware, as it provides advanced packaging and testing services within LEAP and works on technologies including CoWoS, optical interconnects, power delivery, and thermal management, while EMS serves electronic products and systems that include artificial intelligence accelerators. In Q2 FY2026, ATM accounted for approximately 66% of consolidated revenue but generated 94% of operating profit, demonstrating that profit economics depend heavily on the packaging and testing business.
In Q2 FY2026, consolidated revenue reached 191.1 billion New Taiwan dollars, up 27% year over year and 10% quarter over quarter, while net income reached 21.1 billion New Taiwan dollars, up 180% year over year and 49% quarter over quarter. Gross profit reached 40.2 billion New Taiwan dollars with a margin of 21.0%, while operating profit more than doubled year over year to 21.1 billion New Taiwan dollars, and the operating margin increased to 11.1%. Diluted earnings per share reached 4.61 New Taiwan dollars, although net income also benefited from non-operating gains that may not recur, including 4.2 billion New Taiwan dollars from the revaluation of equity investments and 1.5 billion from currency hedges.
ATM recorded all-time-high revenue of 126.1 billion New Taiwan dollars in Q2 FY2026, representing 36% year-over-year growth, with a gross margin of 27.3% and an operating margin of 15.7%. By contrast, EMS revenue reached approximately 65.8 billion New Taiwan dollars, up 12% year over year, but its gross margin declined quarter over quarter to 8.9% and its operating margin to 2.4% due to product mix and higher component prices. On an annual basis, FY2025 revenue increased to 645.4 billion dollars from 595.4 billion dollars in FY2024, while net income rose to 41.2 billion dollars from 33.8 billion dollars.
The analyst consensus provided for the stock is “Buy,” while the 52-week range extends from 9.86 to 45.52 dollars, reflecting a significant revaluation that coincided with accelerating LEAP growth and expanding ATM margins. This momentum should be balanced against expected negative free cash flow, capital expenditure of 10.5 billion dollars in FY2026, and profitability's increasing dependence on executing the artificial intelligence expansion without delays.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
The most prominent driver is ATM, which recorded all-time-high revenue of 126.1 billion New Taiwan dollars in Q2 FY2026, up 36% year over year. ATM revenue increased 35% in the first half of FY2026, and management expects it to continue growing 35% for the full year. LEAP, advanced packaging, and testing are driving this acceleration, while final testing, wafer sorting, and wire bonding capacity were close to full utilization.
LEAP includes advanced packaging and testing services that are significantly linked to computing and artificial intelligence applications. On the July 30, 2026 call, management said that LEAP revenue in FY2026 is tracking ahead of the previous guidance of 3.5 billion dollars and may exceed it by hundreds of millions. The company is targeting a doubling of LEAP revenue in FY2027, and its increasing mix is helping push the ATM margin toward a level above 30% in Q4 FY2026.
Management expects consolidated revenue to grow 21% to 22% quarter over quarter in Q3 FY2026. ATM revenue is expected to grow 11% to 13%, with a gross margin between 28% and 29%. For EMS, the company expects revenue to grow approximately 40% quarter over quarter and an operating margin between 3.2% and 3.4%, but it explained that higher memory component prices are inflating the revenue figure.
Automated analysis for informational purposes only — not investment advice.
ASE Technology increased its capital expenditure plan by 2 billion dollars to approximately 10.5 billion dollars to meet demand for LEAP, conventional advanced packaging, and testing. 4 billion dollars was allocated to buildings and facilities and 6.5 billion to equipment, while spending on advanced technologies represents 70% of the equipment budget. The company is carrying out 13 new projects and 8 projects to renovate existing factories, but management expects free cash flow to remain negative for some time due to the intensity of investment.
The consolidated gross margin reached 21.0% in Q2 FY2026, up one percentage point quarter over quarter and four points year over year. ATM's gross margin increased to 27.3% and its operating margin to 15.7% due to utilization and the LEAP mix, while EMS's gross margin declined to 8.9% due to product mix and higher component prices. The consolidated operating margin reached 11.1%, up 4.3 percentage points year over year.
The main risks are ASE Technology's ability to install equipment and complete 21 expansion projects on time, after available capacity became a constraint on near-term growth. Interest-bearing debt reached 306.2 billion New Taiwan dollars and net debt to equity reached 47% at the end of Q2 FY2026, with free cash flow expected to remain negative. Additional risks include low EMS margins, the possibility of changes in the packaging technology mix among CoWoS, EMIB, and panels, and the inclusion of non-operating gains in quarterly earnings that may not recur.
