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Formosa Optical Technology CoROCO:5312 +1.78%83 Return-on-Tangible-Equity is 7.12% as of Dec. 2025, which is 44% below its 10-year median of 12.69. GuruFocus rates ROCO:5312 with a GF Score™ of 83/100 and a GF Value™ of NT$109.05 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 758 Medical Devices & Instruments companies, Formosa Optical Technology Co ranks better than 69.39% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Formosa Optical Technology Co's annualized net income for the quarter that ended in Dec. 2025 was NT$254 Mil. Formosa Optical Technology Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$3,571 Mil. Therefore, Formosa Optical Technology Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 7.12%.
The historical rank and industry rank for Formosa Optical Technology Co's Return-on-Tangible-Equity or its related term are showing as below:
ROCO:5312'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.54 Med: 12.69 Max: 15.85
Current: 11.2
During the past 13 years, Formosa Optical Technology Co's highest Return-on-Tangible-Equity was 15.85%. The lowest was 6.54%. And the median was 12.69%.
ROCO:5312's Return-on-Tangible-Equity is ranked better than 69.39% of 758
companies
in the Medical Devices & Instruments industry
Industry Median: 4.055
vs ROCO:5312: 11.20
Formosa Optical Technology Co (ROCO:5312) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Formosa Optical Technology Co Return-on-Tangible-Equity Related Terms
Formosa Optical Technology Co Return-on-Tangible-Equity Historical Data
* 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 Optical Technology Co Return-on-Tangible-Equity Chart
ROCO:5312 vs ISRG, BDX, MDLN: Return-on-Tangible-Equity Comparison
For the Medical Instruments & Supplies subindustry, Formosa Optical Technology Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Optical Technology Co Return-on-Tangible-Equity vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Formosa Optical Technology Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Formosa Optical Technology Co's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 7.12% mean?
Formosa Optical Technology Co (ROCO:5312) has a Return-on-Tangible-Equity of 7.12% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Formosa Optical Technology Co and its competitors. This is 44% below median its historical median of 12.69. Over the past decade, Formosa Optical Technology Co's Return-on-Tangible-Equity has ranged from 6.54 to 15.85. According to the industry distribution chart, Formosa Optical Technology Co ranks #232 out of 758 companies in the Medical Devices & Instruments industry, placing it in the top 30.6%.
Is Formosa Optical Technology Co's Return-on-Tangible-Equity too high?
Formosa Optical Technology Co's current Return-on-Tangible-Equity of 7.12% is 44% below median its 10-year median of 12.69. Over the past 10 years, this metric has ranged from a low of 6.54 to a high of 15.85. The Medical Devices & Instruments industry median Return-on-Tangible-Equity is 4.06. Formosa Optical Technology Co's value of 7.12% is 75.6% above this industry median. Based on the distribution chart, Formosa Optical Technology Co ranks #232 out of 758 companies in the Medical Devices & Instruments industry, which is above the industry midpoint. Overall, Formosa Optical Technology Co has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formosa Optical Technology Co's Return-on-Tangible-Equity compare to ISRG and BDX?
According to the Medical Devices & Instruments industry distribution chart, Formosa Optical Technology Co ranks #232 out of 758 companies for Return-on-Tangible-Equity. This puts Formosa Optical Technology Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 4.06. Formosa Optical Technology Co's value of 7.12% is 75.6% above this benchmark. Historically, Formosa Optical Technology Co's own Return-on-Tangible-Equity has ranged from 6.54 to 15.85 over the past decade. While the company's 10-year median is 12.69 vs. the industry median of 4.06, Formosa Optical Technology Co 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-Equity for a Medical Devices & Instruments company?
The median Return-on-Tangible-Equity among Medical Devices & Instruments companies is 4.06, based on 758 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formosa Optical Technology Co's current Return-on-Tangible-Equity of 7.12% is 75.6% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Formosa Optical Technology Co and its competitors. For the Medical Devices & Instruments industry, the median Return-on-Tangible-Equity is 4.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Optical Technology Co's current Return-on-Tangible-Equity is 7.12%, which is 44% below median its own 10-year median of 12.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Optical Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Formosa Optical Technology Co (ROCO:5312) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$109.05, compared to a current price of NT$91.60 — trading 16% below its estimated fair value. The current Return-on-Tangible-Equity is 7.12%, which is 44% below median its 10-year median of 12.69 and 75.6% above the Medical Devices & Instruments industry median of 4.06. Formosa Optical Technology Co's overall GF Score™ is 83/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Formosa Optical Technology Co (ROCO:5312), the current Return-on-Tangible-Equity is 7.12% 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 Optical Technology Co (ROCO:5312) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Optical Technology Co stock appears to be undervalued.
The current stock price of NT$91.60 is trading 16% below its estimated GF Value™ of NT$109.05.
GuruFocus considers Formosa Optical Technology Co to be Modestly Undervalued.
Key valuation signals for ROCO:5312:
Return-on-Tangible-Equity: 7.12% (44% below median its 10-year median of 12.69)
GF Value™: NT$109.05 vs. price of NT$91.60 (16% below fair value)
Industry Position: 75.6% above the Medical Devices & Instruments median (#232 of 758)
No single metric tells the full story. See the ROCO:5312 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa Optical Technology Co Business Description
Formosa Optical Technology Co Ltd is mainly engaged in the eyewear business, including optometry services and the retail business selling contact lenses and eye drops. The Group mainly derives revenue from the business divisions of Formosa Optical Technology and Bo Wei Optical, with Formosa Optical Technology generating maximum revenue. The majority of revenue is derived from the sale of glasses. The Group generates the majority of its revenue from Taiwan.
83GF Score
Get the complete analysis for ROCO:5312
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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