Formosa PetrochemicalTPE:6505 +1.27%89 Operating Margin % is 3.69% as of Dec. 2025, which is 6% below its 10-year median of 3.92. GuruFocus rates TPE:6505 with a GF Score™ of 89/100 and a GF Value™ of NT$57.53 (Fairly Valued). The stock has 4 warning signs investors should review. Among 916 Oil & Gas companies, Formosa Petrochemical ranks worse than 67.69% on this metric.
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.
Formosa Petrochemical Operating Margin % Related Terms
Formosa Petrochemical Operating Margin % Historical Data
* Premium members only.
The historical data trend for Formosa Petrochemical'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.
TPE:6505 vs VLO, MPC, PSX: Operating Margin % Comparison
For the Oil & Gas Refining & Marketing subindustry, Formosa Petrochemical'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.
Formosa Petrochemical Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Formosa Petrochemical's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Formosa Petrochemical's Operating Margin % falls into.
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.
Formosa Petrochemical'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.
Formosa Petrochemical (TPE:6505) has a Operating Margin % of 3.69% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Formosa Petrochemical and its competitors. This is near median its historical median of 3.92. According to the industry distribution chart, Formosa Petrochemical ranks #620 out of 916 companies in the Oil & Gas industry, placing it in the top 67.7%.
Is Formosa Petrochemical's Operating Margin % too high?
Formosa Petrochemical's current Operating Margin % of 3.69% is near median its 10-year median of 3.92. The Oil & Gas industry median Operating Margin % is 6.86. Formosa Petrochemical's value of 3.69% is 46.2% below this industry median. Based on the distribution chart, Formosa Petrochemical ranks #620 out of 916 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Formosa Petrochemical has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Formosa Petrochemical's Operating Margin % compare to VLO and MPC?
According to the Oil & Gas industry distribution chart, Formosa Petrochemical ranks #620 out of 916 companies for Operating Margin %. This places Formosa Petrochemical in the lower half of its industry. The industry median Operating Margin % is 6.86. Formosa Petrochemical's value of 3.69% is 46.2% below this benchmark. While the company's 10-year median is 3.92 vs. the industry median of 6.86, Formosa Petrochemical 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 Operating Margin % for an Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 6.86, based on 916 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. Formosa Petrochemical's current Operating Margin % of 3.69% is 46.2% 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 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 Formosa Petrochemical and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Petrochemical's current Operating Margin % is 3.69%, which is near median its own 10-year median of 3.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Petrochemical stock overvalued right now?
Based on GuruFocus' analysis, Formosa Petrochemical (TPE:6505) is currently considered Fairly Valued. The stock's GF Value™ is NT$57.53, compared to a current price of NT$55.90 — trading 2.8% below its estimated fair value. The current Operating Margin % is 3.69%, which is near median its 10-year median of 3.92 and 46.2% below the Oil & Gas industry median of 6.86. Formosa Petrochemical's overall GF Score™ is 89/100 with 4 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 Formosa Petrochemical (TPE:6505), the current Operating Margin % is 3.69% 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 Petrochemical (TPE:6505) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Petrochemical stock appears to be undervalued.
The current stock price of NT$55.90 is trading 2.8% below its estimated GF Value™ of NT$57.53.
GuruFocus considers Formosa Petrochemical to be Fairly Valued.
Key valuation signals for TPE:6505:
Operating Margin %: 3.69% (near median its 10-year median of 3.92)
GF Value™: NT$57.53 vs. price of NT$55.90 (2.8% below fair value)
Industry Position: 46.2% below the Oil & Gas median (#620 of 916)
No single metric tells the full story. See the TPE:6505 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa Petrochemical Corp engages in the Operation of refinery of petroleum and integrated manufacture of hydrocarbon. The firm operates in two segments. The Petrochemical segment that derives majority revenue engages in producing and selling petroleum, and petrochemical products. The Public utility segment engages in producing and selling water, electricity, and steam. Its product offerings comprise gasoline, jet fuel, kerosene, fuel oil, asphalt, sulfur, lubricant, diesel, naphtha, and liquid petroleum gas.
89GF Score
Get the complete analysis for TPE:6505
Operating 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:6505 has been successfully added to your 
