Formosan Union ChemicalTPE:1709 -1.64%79 Operating Margin % is 8.27% as of Dec. 2025, which is 8% above its 10-year median of 7.66. GuruFocus rates TPE:1709 with a GF Score™ of 79/100 and a GF Value™ of NT$18.58 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,585 Chemicals companies, Formosan Union Chemical ranks better than 55.02% on this metric.
Formosan Union Chemical (TPE:1709) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Formosan Union Chemical Operating Margin % Related Terms
Formosan Union Chemical Operating Margin % Historical Data
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The historical data trend for Formosan Union Chemical's Operating 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 Chemicals subindustry, Formosan Union Chemical's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Formosan Union Chemical's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Formosan Union Chemical's Operating Margin % falls into.
Formosan Union Chemical Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Formosan Union Chemical's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Formosan Union Chemical (TPE:1709) has a Operating Margin % of 8.27% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Formosan Union Chemical and its competitors. This is near median its historical median of 7.66. Over the past decade, Formosan Union Chemical's Operating Margin % has ranged from 3.44 to 13.23. According to the industry distribution chart, Formosan Union Chemical ranks #713 out of 1585 companies in the Chemicals industry, placing it in the top 45%.
Is Formosan Union Chemical's Operating Margin % too high?
Formosan Union Chemical's current Operating Margin % of 8.27% is near median its 10-year median of 7.66. Over the past 10 years, this metric has ranged from a low of 3.44 to a high of 13.23. The Chemicals industry median Operating Margin % is 6.02. Formosan Union Chemical's value of 8.27% is 37.4% above this industry median. Based on the distribution chart, Formosan Union Chemical ranks #713 out of 1585 companies in the Chemicals industry, which is above 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 Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Formosan Union Chemical ranks #713 out of 1585 companies for Operating Margin %. This puts Formosan Union Chemical in the upper half of its industry. The industry median Operating Margin % is 6.02. Formosan Union Chemical's value of 8.27% is 37.4% above this benchmark. Historically, Formosan Union Chemical's own Operating Margin % has ranged from 3.44 to 13.23 over the past decade. While the company's 10-year median is 7.66 vs. the industry median of 6.02, Formosan Union Chemical 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 Operating Margin % for a Chemicals company?
The median Operating Margin % among Chemicals companies is 6.02, based on 1,585 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formosan Union Chemical's current Operating Margin % of 8.27% is 37.4% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Formosan Union Chemical and its competitors. For the Chemicals industry, the median Operating Margin % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosan Union Chemical's current Operating Margin % is 8.27%, which is near median its own 10-year median of 7.66. 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$18.58, compared to a current price of NT$21.05 — trading 13.3% above its estimated fair value. The current Operating Margin % is 8.27%, which is near median its 10-year median of 7.66 and 37.4% above the Chemicals industry median of 6.02. Formosan Union Chemical's overall GF Score™ is 79/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Formosan Union Chemical (TPE:1709), the current Operating Margin % is 8.27% 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$21.05 is trading 13.3% above its estimated GF Value™ of NT$18.58.
GuruFocus considers Formosan Union Chemical to be Modestly Overvalued.
Key valuation signals for TPE:1709:
Operating Margin %: 8.27% (near median its 10-year median of 7.66)
GF Value™: NT$18.58 vs. price of NT$21.05 (13.3% above fair value)
Industry Position: 37.4% above the Chemicals median (#713 of 1585)
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
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