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Formosa PetrochemicalTPE:6505 -9.21%83 Return-on-Tangible-Asset is 18.55% as of Mar. 2026, which is 158% above its 10-year median of 7.19. GuruFocus rates TPE:6505 with a GF Score™ of 83/100 and a GF Value™ of NT$54.58 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,028 Oil & Gas companies, Formosa Petrochemical ranks better than 75.78% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Formosa Petrochemical's annualizedNet Income for the quarter that ended in Mar. 2026 was NT$81,631 Mil. Formosa Petrochemical's average total tangible assets for the quarter that ended in Mar. 2026 was NT$440,087 Mil. Therefore, Formosa Petrochemical's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 18.55%.
The historical rank and industry rank for Formosa Petrochemical's Return-on-Tangible-Asset or its related term are showing as below:
TPE:6505'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.52 Med: 7.19 Max: 18.14
Current: 6.65
During the past 13 years, Formosa Petrochemical's highest Return-on-Tangible-Asset was 18.14%. The lowest was 1.52%. And the median was 7.19%.
TPE:6505's Return-on-Tangible-Asset is ranked better than 75.78% of 1028
companies
in the Oil & Gas industry
Industry Median: 2.055
vs TPE:6505: 6.65
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Formosa Petrochemical Return-on-Tangible-Asset Related Terms
Formosa Petrochemical Return-on-Tangible-Asset Historical Data
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The historical data trend for Formosa Petrochemical's Return-on-Tangible-Asset 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 MPC, VLO, PSX: Return-on-Tangible-Asset Comparison
For the Oil & Gas Refining & Marketing subindustry, Formosa Petrochemical's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Formosa Petrochemical's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Formosa Petrochemical's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 18.55% mean?
Formosa Petrochemical (TPE:6505) has a Return-on-Tangible-Asset of 18.55% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Formosa Petrochemical and its competitors. This is 158% above median its historical median of 7.19. Over the past decade, Formosa Petrochemical's Return-on-Tangible-Asset has ranged from 1.52 to 18.14. According to the industry distribution chart, Formosa Petrochemical ranks #249 out of 1028 companies in the Oil & Gas industry, placing it in the top 24.2%.
Is Formosa Petrochemical's Return-on-Tangible-Asset too high?
Formosa Petrochemical's current Return-on-Tangible-Asset of 18.55% is 158% above median its 10-year median of 7.19. Over the past 10 years, this metric has ranged from a low of 1.52 to a high of 18.14. The Oil & Gas industry median Return-on-Tangible-Asset is 2.06. Formosa Petrochemical's value of 18.55% is 802.7% above this industry median. Based on the distribution chart, Formosa Petrochemical ranks #249 out of 1028 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Formosa Petrochemical has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Formosa Petrochemical's Return-on-Tangible-Asset compare to MPC and VLO?
According to the Oil & Gas industry distribution chart, Formosa Petrochemical ranks #249 out of 1028 companies for Return-on-Tangible-Asset. This places Formosa Petrochemical in the top 24% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.06. Formosa Petrochemical's value of 18.55% is 802.7% above this benchmark. Historically, Formosa Petrochemical's own Return-on-Tangible-Asset has ranged from 1.52 to 18.14 over the past decade. While the company's 10-year median is 7.19 vs. the industry median of 2.06, Formosa Petrochemical 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 Return-on-Tangible-Asset for an Oil & Gas company?
The median Return-on-Tangible-Asset among Oil & Gas companies is 2.06, based on 1,028 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formosa Petrochemical's current Return-on-Tangible-Asset of 18.55% is 802.7% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Formosa Petrochemical and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Asset is 2.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Petrochemical's current Return-on-Tangible-Asset is 18.55%, which is 158% above median its own 10-year median of 7.19. 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 Significantly Overvalued. The stock's GF Value™ is NT$54.58, compared to a current price of NT$77.90 — trading 42.7% above its estimated fair value. The current Return-on-Tangible-Asset is 18.55%, which is 158% above median its 10-year median of 7.19 and 802.7% above the Oil & Gas industry median of 2.06. Formosa Petrochemical's overall GF Score™ is 83/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Formosa Petrochemical (TPE:6505), the current Return-on-Tangible-Asset is 18.55% as of Mar. 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 Petrochemical (TPE:6505) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Petrochemical stock appears to be overvalued.
The current stock price of NT$77.90 is trading 42.7% above its estimated GF Value™ of NT$54.58.
GuruFocus considers Formosa Petrochemical to be Significantly Overvalued.
Key valuation signals for TPE:6505:
Return-on-Tangible-Asset: 18.55% (158% above median its 10-year median of 7.19)
GF Value™: NT$54.58 vs. price of NT$77.90 (42.7% above fair value)
Industry Position: 802.7% above the Oil & Gas median (#249 of 1028)
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.
83GF Score
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