Formosa Plastics (TPE:1301) Profitability Rank: 6 (As of Jun. 2026) — 14% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TPE:1301 Formosa Plastics Corp TPE:1301
70 GF Score
Price NT$65.00
GF Value NT$46.49
Valuation Significantly Overvalued
! 9 Warning Signs
View Full Analysis

What is Formosa Plastics Profitability Rank?

Formosa Plastics TPE:1301 +0.62% 70 Profitability Rank is 6 as of Jun. 2026, which is 14% below its 10-year median of 7.00. GuruFocus rates TPE:1301 with a GF Score™ of 70/100 and a GF Value™ of NT$46.49 (Significantly Overvalued). The stock has 9 warning signs investors should review.

Formosa Plastics has the Profitability Rank of 6.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Formosa Plastics's Operating Margin % for the quarter that ended in Jun. 2026 was 6.09%. As of today, Formosa Plastics's Piotroski F-Score is 7.


Formosa Plastics Profitability Rank Related Terms


TPE:1301 vs LIN, SHW, ECL: Profitability Rank Comparison

For the Specialty Chemicals subindustry, Formosa Plastics's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 Plastics Profitability Rank vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Formosa Plastics's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Formosa Plastics's Profitability Rank falls into.


TPE:1301
70GF Score
Formosa Plastics Corp TPE:1301
Profitability Rank is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Formosa Plastics Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Formosa Plastics has the Profitability Rank of 6.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

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 Plastics's Operating Margin % for the quarter that ended in Jun. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2026 ) / Revenue (Q: Jun. 2026 )
=2876.238 / 47253.968
=6.09 %

* 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.

2. Piotroski F-Score

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Formosa Plastics has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

4. Consistency of the profitability

5. Predictability Rank

Frequently Asked Questions Learn more about Profitability Rank →
What does a Profitability Rank of 6 mean?
Formosa Plastics (TPE:1301) has a Profitability Rank of 6 as of Jun. 2026. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Formosa Plastics and its competitors. This is 14% below median its historical median of 7.00. Over the past decade, Formosa Plastics' Profitability Rank has ranged from 5.00 to 7.00.
Is Formosa Plastics' Profitability Rank too high?
Formosa Plastics' current Profitability Rank of 6 is 14% below median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 7.00. Overall, Formosa Plastics has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Formosa Plastics' Profitability Rank compare to LIN and SHW?
Formosa Plastics' Profitability Rank of 6 can be compared against companies in the Chemicals industry. Historically, Formosa Plastics' own Profitability Rank has ranged from 5.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for a Chemicals company?
A good Profitability Rank depends on the Chemicals industry context. However, Profitability Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Formosa Plastics and its competitors. Formosa Plastics's current Profitability Rank is 6, which is 14% below median its own 10-year median of 7.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Plastics stock overvalued right now?
Based on GuruFocus' analysis, Formosa Plastics (TPE:1301) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$46.49, compared to a current price of NT$65.00 — trading 39.8% above its estimated fair value. The current Profitability Rank is 6, which is 14% below median its 10-year median of 7.00. Formosa Plastics' overall GF Score™ is 70/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For Formosa Plastics (TPE:1301), the current Profitability Rank is 6 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 Plastics (TPE:1301) Overvalued in 2026?

Based on GuruFocus' analysis, Formosa Plastics stock appears to be overvalued. The current stock price of NT$65.00 is trading 39.8% above its estimated GF Value™ of NT$46.49. GuruFocus considers Formosa Plastics to be Significantly Overvalued.

Key valuation signals for TPE:1301:

  • Profitability Rank: 6 (14% below median its 10-year median of 7.00)
  • GF Value™: NT$46.49 vs. price of NT$65.00 (39.8% above fair value)
  • GF Score™: 70/100 with 9 warning signs

No single metric tells the full story. See the TPE:1301 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Formosa Plastics Business Description

Address No. 100, Shuiguan Road, Renwu District, Kaohsiung, TWN, 814
Formosa Plastics Corp is a holding company that, through its subsidiaries, manufactures and sells plastic-based products, chemical fibers, and petrochemicals. The company operates in five reportable segments: Plastics Division, Polyolefins Division, Polypropylene Division, Tairylan Division, and Chemical Division. The majority of revenue is derived from the Plastic division. Geographically, the company operates in Taiwan, mainland China, and other countries, with the maximum revenue generated from Taiwan.
70GF Score

Get the complete analysis for TPE:1301

Profitability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$65.00
Price
NT$46.49
GF Value