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Formosa PlasticsTPE:1301 +3.30%71 Return-on-Tangible-Equity is 3.48% as of Mar. 2026, which is 65% below its 10-year median of 10.07. GuruFocus rates TPE:1301 with a GF Score™ of 71/100 and a GF Value™ of NT$45.04 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,570 Chemicals companies, Formosa Plastics ranks worse than 78.41% 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 Plastics's annualized net income for the quarter that ended in Mar. 2026 was NT$13,075 Mil. Formosa Plastics's average shareholder tangible equity for the quarter that ended in Mar. 2026 was NT$376,139 Mil. Therefore, Formosa Plastics's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 3.48%.
The historical rank and industry rank for Formosa Plastics's Return-on-Tangible-Equity or its related term are showing as below:
TPE:1301'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -3.09 Med: 10.07 Max: 19.43
Current: -2.14
During the past 13 years, Formosa Plastics's highest Return-on-Tangible-Equity was 19.43%. The lowest was -3.09%. And the median was 10.07%.
TPE:1301's Return-on-Tangible-Equity is ranked worse than 78.41% of 1570
companies
in the Chemicals industry
Industry Median: 5.77
vs TPE:1301: -2.14
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 Plastics Return-on-Tangible-Equity Related Terms
Formosa Plastics Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Formosa Plastics's Return-on-Tangible-Equity 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:1301 vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Formosa Plastics'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 Plastics Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Formosa Plastics's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Formosa Plastics'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 (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 3.48% mean?
Formosa Plastics (TPE:1301) has a Return-on-Tangible-Equity of 3.48% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Formosa Plastics and its competitors. This is 65% below median its historical median of 10.07. According to the industry distribution chart, Formosa Plastics ranks #1231 out of 1570 companies in the Chemicals industry, placing it in the top 78.4%.
Is Formosa Plastics' Return-on-Tangible-Equity too high?
Formosa Plastics' current Return-on-Tangible-Equity of 3.48% is 65% below median its 10-year median of 10.07. The Chemicals industry median Return-on-Tangible-Equity is 5.77. Formosa Plastics' value of 3.48% is 39.7% below this industry median. Based on the distribution chart, Formosa Plastics ranks #1231 out of 1570 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Formosa Plastics has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Formosa Plastics' Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Formosa Plastics ranks #1231 out of 1570 companies for Return-on-Tangible-Equity. This places Formosa Plastics in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.77. Formosa Plastics' value of 3.48% is 39.7% below this benchmark. While the company's 10-year median is 10.07 vs. the industry median of 5.77, Formosa Plastics 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 Return-on-Tangible-Equity for a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.77, based on 1,570 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 Plastics's current Return-on-Tangible-Equity of 3.48% is 39.7% 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 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 Plastics and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Plastics's current Return-on-Tangible-Equity is 3.48%, which is 65% below median its own 10-year median of 10.07. 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$45.04, compared to a current price of NT$65.70 — trading 45.9% above its estimated fair value. The current Return-on-Tangible-Equity is 3.48%, which is 65% below median its 10-year median of 10.07 and 39.7% below the Chemicals industry median of 5.77. Formosa Plastics' overall GF Score™ is 71/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Formosa Plastics (TPE:1301), the current Return-on-Tangible-Equity is 3.48% 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 Plastics (TPE:1301) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Plastics stock appears to be overvalued.
The current stock price of NT$65.70 is trading 45.9% above its estimated GF Value™ of NT$45.04.
GuruFocus considers Formosa Plastics to be Significantly Overvalued.
Key valuation signals for TPE:1301:
Return-on-Tangible-Equity: 3.48% (65% below median its 10-year median of 10.07)
GF Value™: NT$45.04 vs. price of NT$65.70 (45.9% above fair value)
Industry Position: 39.7% below the Chemicals median (#1231 of 1570)
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 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.
71GF Score
Get the complete analysis for TPE:1301
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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