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Formosa LaboratoriesTPE:4746 +0.61%78 Debt-to-Equity is 0.49 as of Jun. 2026, which is 2% below its 10-year median of 0.50. GuruFocus rates TPE:4746 with a GF Score™ of 78/100 and a GF Value™ of NT$71.28 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 811 Drug Manufacturers companies, Formosa Laboratories ranks worse than 68.93% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Formosa Laboratories's Debt-to-Equity or its related term are showing as below:
TPE:4746'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.26 Med: 0.5 Max: 0.84
Current: 0.49
During the past 13 years, the highest Debt-to-Equity Ratio of Formosa Laboratories was 0.84. The lowest was 0.26. And the median was 0.50.
TPE:4746's Debt-to-Equity is ranked worse than 68.93% of 811
companies
in the Drug Manufacturers industry
Industry Median: 0.27
vs TPE:4746: 0.49
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Formosa Laboratories Debt-to-Equity Related Terms
Formosa Laboratories Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Formosa Laboratories's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Drug Manufacturers - Specialty & Generic subindustry, Formosa Laboratories's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Formosa Laboratories Debt-to-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Formosa Laboratories's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Formosa Laboratories's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Formosa Laboratories (TPE:4746) has a Debt-to-Equity of 0.49 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Formosa Laboratories and its competitors. This is near median its historical median of 0.50. Over the past decade, Formosa Laboratories' Debt-to-Equity has ranged from 0.26 to 0.84. According to the industry distribution chart, Formosa Laboratories ranks #559 out of 811 companies in the Drug Manufacturers industry, placing it in the top 68.9%.
Is Formosa Laboratories' Debt-to-Equity too high?
Formosa Laboratories' current Debt-to-Equity of 0.49 is near median its 10-year median of 0.50. Over the past 10 years, this metric has ranged from a low of 0.26 to a high of 0.84. The Drug Manufacturers industry median Debt-to-Equity is 0.27. Formosa Laboratories' value of 0.49 is 81.5% above this industry median. Based on the distribution chart, Formosa Laboratories ranks #559 out of 811 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Formosa Laboratories has a GF Score™ of 78/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Formosa Laboratories' Debt-to-Equity compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Formosa Laboratories ranks #559 out of 811 companies for Debt-to-Equity. This places Formosa Laboratories in the lower half of its industry. The industry median Debt-to-Equity is 0.27. Formosa Laboratories' value of 0.49 is 81.5% above this benchmark. Historically, Formosa Laboratories' own Debt-to-Equity has ranged from 0.26 to 0.84 over the past decade. While the company's 10-year median is 0.50 vs. the industry median of 0.27, Formosa Laboratories has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Drug Manufacturers company?
The median Debt-to-Equity among Drug Manufacturers companies is 0.27, based on 811 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formosa Laboratories's current Debt-to-Equity of 0.49 is 81.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Formosa Laboratories and its competitors. For the Drug Manufacturers industry, the median Debt-to-Equity is 0.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Laboratories's current Debt-to-Equity is 0.49, which is near median its own 10-year median of 0.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Formosa Laboratories (TPE:4746) is currently considered Possible Value Trap. The stock's GF Value™ is NT$71.28, compared to a current price of NT$49.35 — trading 30.8% below its estimated fair value. The current Debt-to-Equity is 0.49, which is near median its 10-year median of 0.50 and 81.5% above the Drug Manufacturers industry median of 0.27. Formosa Laboratories' overall GF Score™ is 78/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Formosa Laboratories (TPE:4746), the current Debt-to-Equity is 0.49 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Formosa Laboratories (TPE:4746) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Laboratories stock appears to be undervalued.
The current stock price of NT$49.35 is trading 30.8% below its estimated GF Value™ of NT$71.28.
GuruFocus considers Formosa Laboratories to be Possible Value Trap.
Key valuation signals for TPE:4746:
Debt-to-Equity: 0.49 (near median its 10-year median of 0.50)
GF Value™: NT$71.28 vs. price of NT$49.35 (30.8% below fair value)
Industry Position: 81.5% above the Drug Manufacturers median (#559 of 811)
No single metric tells the full story. See the TPE:4746 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa Laboratories Inc is mainly engaged in the wholesale and manufacturing of active pharmaceutical ingredients, as well as ultraviolet absorbers. The company geographically operates in India, Taiwan, Netherlands, Switzerland, Germany, Japan, China, Canada, United States, and Others.
78GF Score
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