Formosan Union ChemicalTPE:1709 76 Return-on-Tangible-Equity is 7.97% as of Dec. 2025, which is 5% below its 10-year median of 8.35. GuruFocus rates TPE:1709 with a GF Score™ of 76/100 and a GF Value™ of NT$18.53 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,569 Chemicals companies, Formosan Union Chemical ranks better than 54.56% 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. Formosan Union Chemical's annualized net income for the quarter that ended in Dec. 2025 was NT$701 Mil. Formosan Union Chemical's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$8,794 Mil. Therefore, Formosan Union Chemical's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 7.97%.
The historical rank and industry rank for Formosan Union Chemical's Return-on-Tangible-Equity or its related term are showing as below:
TPE:1709'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.12 Med: 8.35 Max: 13.81
Current: 6.68
During the past 13 years, Formosan Union Chemical's highest Return-on-Tangible-Equity was 13.81%. The lowest was 3.12%. And the median was 8.35%.
TPE:1709's Return-on-Tangible-Equity is ranked better than 54.56% of 1569
companies
in the Chemicals industry
Industry Median: 5.73
vs TPE:1709: 6.68
Formosan Union Chemical (TPE:1709) 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.
Formosan Union Chemical Return-on-Tangible-Equity Related Terms
Formosan Union Chemical Return-on-Tangible-Equity Historical Data
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The historical data trend for Formosan Union Chemical'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.
Formosan Union Chemical Return-on-Tangible-Equity Chart
TPE:1709 vs DOW: Return-on-Tangible-Equity Comparison
For the Chemicals subindustry, Formosan Union Chemical'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.
Formosan Union Chemical Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Formosan Union Chemical's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Formosan Union Chemical'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 7.97% mean?
Formosan Union Chemical (TPE:1709) has a Return-on-Tangible-Equity of 7.97% 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 Formosan Union Chemical and its competitors. This is near median its historical median of 8.35. Over the past decade, Formosan Union Chemical's Return-on-Tangible-Equity has ranged from 3.12 to 13.81. According to the industry distribution chart, Formosan Union Chemical ranks #713 out of 1569 companies in the Chemicals industry, placing it in the top 45.4%.
Is Formosan Union Chemical's Return-on-Tangible-Equity too high?
Formosan Union Chemical's current Return-on-Tangible-Equity of 7.97% is near median its 10-year median of 8.35. Over the past 10 years, this metric has ranged from a low of 3.12 to a high of 13.81. The Chemicals industry median Return-on-Tangible-Equity is 5.73. Formosan Union Chemical's value of 7.97% is 39.1% above this industry median. Based on the distribution chart, Formosan Union Chemical ranks #713 out of 1569 companies in the Chemicals industry, which is above the industry midpoint. Overall, Formosan Union Chemical has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Formosan Union Chemical's Return-on-Tangible-Equity compare to DOW?
According to the Chemicals industry distribution chart, Formosan Union Chemical ranks #713 out of 1569 companies for Return-on-Tangible-Equity. This puts Formosan Union Chemical in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.73. Formosan Union Chemical's value of 7.97% is 39.1% above this benchmark. Historically, Formosan Union Chemical's own Return-on-Tangible-Equity has ranged from 3.12 to 13.81 over the past decade. While the company's 10-year median is 8.35 vs. the industry median of 5.73, Formosan Union Chemical 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 Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.73, based on 1,569 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. Formosan Union Chemical's current Return-on-Tangible-Equity of 7.97% is 39.1% 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 Formosan Union Chemical and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosan Union Chemical's current Return-on-Tangible-Equity is 7.97%, which is near median its own 10-year median of 8.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosan Union Chemical stock overvalued right now?
Based on GuruFocus' analysis, Formosan Union Chemical (TPE:1709) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$18.53, compared to a current price of NT$24.40 — trading 31.7% above its estimated fair value. The current Return-on-Tangible-Equity is 7.97%, which is near median its 10-year median of 8.35 and 39.1% above the Chemicals industry median of 5.73. Formosan Union Chemical's overall GF Score™ is 76/100 with 8 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 Formosan Union Chemical (TPE:1709), the current Return-on-Tangible-Equity is 7.97% 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 Formosan Union Chemical (TPE:1709) Overvalued in 2026?
Based on GuruFocus' analysis, Formosan Union Chemical stock appears to be overvalued.
The current stock price of NT$24.40 is trading 31.7% above its estimated GF Value™ of NT$18.53.
GuruFocus considers Formosan Union Chemical to be Significantly Overvalued.
Key valuation signals for TPE:1709:
Return-on-Tangible-Equity: 7.97% (near median its 10-year median of 8.35)
GF Value™: NT$18.53 vs. price of NT$24.40 (31.7% above fair value)
Industry Position: 39.1% above the Chemicals median (#713 of 1569)
No single metric tells the full story. See the TPE:1709 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosan Union Chemical Corp is a Taiwan-based company principally engaged in the production, processing, and trading of chemical products. Its key products are alkyl benzene, nonyl phenol, and hydrogenated hydrocarbon resin and its derivatives. The products are mainly used as raw materials for detergents, surfactants, rubbers, and plastic anti-oxidant agents, among others.
76GF Score
Get the complete analysis for TPE:1709
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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