Formosan Union ChemicalTPE:1709 +3.05%79 Gross Margin % is 17.58% as of Dec. 2025, which is 8% above its 10-year median of 16.22. GuruFocus rates TPE:1709 with a GF Score™ of 79/100 and a GF Value™ of NT$18.56 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,560 Chemicals companies, Formosan Union Chemical ranks worse than 71.41% on this metric.
TPE:1709's Gross Margin % is ranked worse than 71.41% of 1560
companies
in the Chemicals industry
Industry Median: 23.36
vs TPE:1709: 14.89
Formosan Union Chemical had a gross margin of 17.58% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Formosan Union Chemical was -7.40% per year.
Formosan Union Chemical (TPE:1709) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Formosan Union Chemical had a gross margin of 17.58% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Formosan Union Chemical Gross Margin % Related Terms
Formosan Union Chemical Gross Margin % Historical Data
* 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 Chemicals subindustry, Formosan Union Chemical's Gross Margin %, along with its competitors' market caps and Gross Margin % 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.
Formosan Union Chemical Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Formosan Union Chemical's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Formosan Union Chemical's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Formosan Union Chemical (TPE:1709) has a Gross Margin % of 17.58% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Formosan Union Chemical and its competitors. This is near median its historical median of 16.22. Over the past decade, Formosan Union Chemical's Gross Margin % has ranged from 11.32 to 23.24. According to the industry distribution chart, Formosan Union Chemical ranks #1114 out of 1560 companies in the Chemicals industry, placing it in the top 71.4%.
Is Formosan Union Chemical's Gross Margin % too high?
Formosan Union Chemical's current Gross Margin % of 17.58% is near median its 10-year median of 16.22. Over the past 10 years, this metric has ranged from a low of 11.32 to a high of 23.24. The Chemicals industry median Gross Margin % is 23.36. Formosan Union Chemical's value of 17.58% is 24.7% below this industry median. Based on the distribution chart, Formosan Union Chemical ranks #1114 out of 1560 companies in the Chemicals industry, which is below the industry midpoint. Overall, Formosan Union Chemical has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Formosan Union Chemical's Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Formosan Union Chemical ranks #1114 out of 1560 companies for Gross Margin %. This places Formosan Union Chemical in the lower half of its industry. The industry median Gross Margin % is 23.36. Formosan Union Chemical's value of 17.58% is 24.7% below this benchmark. Historically, Formosan Union Chemical's own Gross Margin % has ranged from 11.32 to 23.24 over the past decade. While the company's 10-year median is 16.22 vs. the industry median of 23.36, Formosan Union Chemical has consistently been below 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 Gross Margin % for a Chemicals company?
The median Gross Margin % among Chemicals companies is 23.36, based on 1,560 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formosan Union Chemical's current Gross Margin % of 17.58% is 24.7% below 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Formosan Union Chemical and its competitors. For the Chemicals industry, the median Gross Margin % is 23.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosan Union Chemical's current Gross Margin % is 17.58%, which is near median its own 10-year median of 16.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosan Union Chemical stock overvalued right now?
Based on GuruFocus' analysis, Formosan Union Chemical (TPE:1709) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$18.56, compared to a current price of NT$21.95 — trading 18.3% above its estimated fair value. The current Gross Margin % is 17.58%, which is near median its 10-year median of 16.22 and 24.7% below the Chemicals industry median of 23.36. Formosan Union Chemical's overall GF Score™ is 79/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Formosan Union Chemical (TPE:1709), the current Gross Margin % is 17.58% as of Dec. 2025. 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 Formosan Union Chemical (TPE:1709) Overvalued in 2026?
Based on GuruFocus' analysis, Formosan Union Chemical stock appears to be overvalued.
The current stock price of NT$21.95 is trading 18.3% above its estimated GF Value™ of NT$18.56.
GuruFocus considers Formosan Union Chemical to be Modestly Overvalued.
Key valuation signals for TPE:1709:
Gross Margin %: 17.58% (near median its 10-year median of 16.22)
GF Value™: NT$18.56 vs. price of NT$21.95 (18.3% above fair value)
Industry Position: 24.7% below the Chemicals median (#1114 of 1560)
No single metric tells the full story. See the TPE:1709 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosan Union Chemical Corp is a Taiwan-based company principally engaged in the production, processing, and trading of chemical products. Its key products are alkyl benzene, nonyl phenol, and hydrogenated hydrocarbon resin and its derivatives. The products are mainly used as raw materials for detergents, surfactants, rubbers, and plastic anti-oxidant agents, among others.
79GF Score
Get the complete analysis for TPE:1709
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TPE:1709 has been successfully added to your 
