Formosa LaboratoriesTPE:4746 -1.14%70 Net Margin % is 11.30% as of Dec. 2025, which is 22% above its 10-year median of 9.25. GuruFocus rates TPE:4746 with a GF Score™ of 70/100 and a GF Value™ of NT$98.73 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 956 Drug Manufacturers companies, Formosa Laboratories ranks better than 60.88% on this metric.
The historical rank and industry rank for Formosa Laboratories's Net Margin % or its related term are showing as below:
TPE:4746'
s Net Margin % Range Over the Past 10 Years
Min: 0.42 Med: 9.25 Max: 39.75
Current: 9.09
TPE:4746's Net Margin % is ranked better than 60.88% of 956
companies
in the Drug Manufacturers industry
Industry Median: 5.56
vs TPE:4746: 9.09
Formosa Laboratories (TPE:4746) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Formosa Laboratories Net Margin % Related Terms
Formosa Laboratories Net Margin % Historical Data
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The historical data trend for Formosa Laboratories's Net Margin % 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 Net Margin %, along with its competitors' market caps and Net 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.
Formosa Laboratories Net Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Formosa Laboratories's Net Margin % distribution charts can be found below:
* The bar in red indicates where Formosa Laboratories's Net 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.
Formosa Laboratories (TPE:4746) has a Net Margin % of 11.30% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Formosa Laboratories and its competitors. This is 22% above median its historical median of 9.25. Over the past decade, Formosa Laboratories' Net Margin % has ranged from 0.42 to 39.75. According to the industry distribution chart, Formosa Laboratories ranks #374 out of 956 companies in the Drug Manufacturers industry, placing it in the top 39.1%.
Is Formosa Laboratories' Net Margin % too high?
Formosa Laboratories' current Net Margin % of 11.30% is 22% above median its 10-year median of 9.25. Over the past 10 years, this metric has ranged from a low of 0.42 to a high of 39.75. The Drug Manufacturers industry median Net Margin % is 5.56. Formosa Laboratories' value of 11.30% is 103.2% above this industry median. Based on the distribution chart, Formosa Laboratories ranks #374 out of 956 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Formosa Laboratories has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Formosa Laboratories' Net Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Formosa Laboratories ranks #374 out of 956 companies for Net Margin %. This puts Formosa Laboratories in the upper half of its industry. The industry median Net Margin % is 5.56. Formosa Laboratories' value of 11.30% is 103.2% above this benchmark. Historically, Formosa Laboratories' own Net Margin % has ranged from 0.42 to 39.75 over the past decade. While the company's 10-year median is 9.25 vs. the industry median of 5.56, 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 Net Margin % for a Drug Manufacturers company?
The median Net Margin % among Drug Manufacturers companies is 5.56, based on 956 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formosa Laboratories's current Net Margin % of 11.30% is 103.2% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Formosa Laboratories and its competitors. For the Drug Manufacturers industry, the median Net Margin % is 5.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Laboratories's current Net Margin % is 11.30%, which is 22% above median its own 10-year median of 9.25. 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$98.73, compared to a current price of NT$52.00 — trading 47.3% below its estimated fair value. The current Net Margin % is 11.30%, which is 22% above median its 10-year median of 9.25 and 103.2% above the Drug Manufacturers industry median of 5.56. Formosa Laboratories' overall GF Score™ is 70/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Formosa Laboratories (TPE:4746), the current Net Margin % is 11.30% 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 Formosa Laboratories (TPE:4746) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Laboratories stock appears to be undervalued.
The current stock price of NT$52.00 is trading 47.3% below its estimated GF Value™ of NT$98.73.
GuruFocus considers Formosa Laboratories to be Possible Value Trap.
Key valuation signals for TPE:4746:
Net Margin %: 11.30% (22% above median its 10-year median of 9.25)
GF Value™: NT$98.73 vs. price of NT$52.00 (47.3% below fair value)
Industry Position: 103.2% above the Drug Manufacturers median (#374 of 956)
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.
70GF Score
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