Faraday Technology (TPE:3035) Return-on-Tangible-Equity: 3.57% (As of Mar. 2026) — 61% Below Median

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TPE:3035 Faraday Technology Corp TPE:3035
95 GF Score
Price NT$207.00
GF Value NT$268.93
Valuation Modestly Undervalued
! 9 Warning Signs
View Full Analysis

What is Faraday Technology Return-on-Tangible-Equity?

Faraday Technology TPE:3035 95 Return-on-Tangible-Equity is 3.57% as of Mar. 2026, which is 61% below its 10-year median of 9.23. GuruFocus rates TPE:3035 with a GF Score™ of 95/100 and a GF Value™ of NT$268.93 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 985 Semiconductors companies, Faraday Technology ranks worse than 52.89% 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. Faraday Technology's annualized net income for the quarter that ended in Mar. 2026 was NT$417 Mil. Faraday Technology's average shareholder tangible equity for the quarter that ended in Mar. 2026 was NT$11,674 Mil. Therefore, Faraday Technology's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 3.57%.

The historical rank and industry rank for Faraday Technology's Return-on-Tangible-Equity or its related term are showing as below:

TPE:3035' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.37   Med: 9.23   Max: 32.05
Current: 4.37

During the past 13 years, Faraday Technology's highest Return-on-Tangible-Equity was 32.05%. The lowest was 4.37%. And the median was 9.23%.

TPE:3035's Return-on-Tangible-Equity is ranked worse than
52.89% of 985 companies
in the Semiconductors industry
Industry Median: 5.24 vs TPE:3035: 4.37

Faraday Technology  (TPE:3035) 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.


Faraday Technology Return-on-Tangible-Equity Related Terms


Faraday Technology Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Faraday Technology'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.

Faraday Technology Return-on-Tangible-Equity Chart

Faraday Technology Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.29 32.05 18.88 10.51 6.57

Faraday Technology Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.47 0.95 5.67 7.45 3.57

TPE:3035 vs AMAT, LRCX, KLAC: Return-on-Tangible-Equity Comparison

For the Semiconductor Equipment & Materials subindustry, Faraday Technology'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.


Faraday Technology Return-on-Tangible-Equity vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Faraday Technology's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Faraday Technology's Return-on-Tangible-Equity falls into.


TPE:3035
95GF Score
Faraday Technology Corp TPE:3035
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Faraday Technology Return-on-Tangible-Equity Calculation

Faraday Technology's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=731.331/( (10959.785+11295.458 )/ 2 )
=731.331/11127.6215
=6.57 %

Faraday Technology's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=417.052/( (11295.458+12052.12)/ 2 )
=417.052/11673.789
=3.57 %

* 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 3.57% mean?
Faraday Technology (TPE:3035) has a Return-on-Tangible-Equity of 3.57% 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 Faraday Technology and its competitors. This is 61% below median its historical median of 9.23. Over the past decade, Faraday Technology's Return-on-Tangible-Equity has ranged from 4.37 to 32.05. According to the industry distribution chart, Faraday Technology ranks #521 out of 985 companies in the Semiconductors industry, placing it in the top 52.9%.
Is Faraday Technology's Return-on-Tangible-Equity too high?
Faraday Technology's current Return-on-Tangible-Equity of 3.57% is 61% below median its 10-year median of 9.23. Over the past 10 years, this metric has ranged from a low of 4.37 to a high of 32.05. The Semiconductors industry median Return-on-Tangible-Equity is 5.24. Faraday Technology's value of 3.57% is 31.9% below this industry median. Based on the distribution chart, Faraday Technology ranks #521 out of 985 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Faraday Technology has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Faraday Technology's Return-on-Tangible-Equity compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Faraday Technology ranks #521 out of 985 companies for Return-on-Tangible-Equity. This places Faraday Technology in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.24. Faraday Technology's value of 3.57% is 31.9% below this benchmark. Historically, Faraday Technology's own Return-on-Tangible-Equity has ranged from 4.37 to 32.05 over the past decade. While the company's 10-year median is 9.23 vs. the industry median of 5.24, Faraday Technology 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 Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 5.24, based on 985 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. Faraday Technology's current Return-on-Tangible-Equity of 3.57% is 31.9% 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 Faraday Technology and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Faraday Technology's current Return-on-Tangible-Equity is 3.57%, which is 61% below median its own 10-year median of 9.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Faraday Technology stock overvalued right now?
Based on GuruFocus' analysis, Faraday Technology (TPE:3035) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$268.93, compared to a current price of NT$207.00 — trading 23% below its estimated fair value. The current Return-on-Tangible-Equity is 3.57%, which is 61% below median its 10-year median of 9.23 and 31.9% below the Semiconductors industry median of 5.24. Faraday Technology's overall GF Score™ is 95/100 with 9 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 Faraday Technology (TPE:3035), the current Return-on-Tangible-Equity is 3.57% 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 Faraday Technology (TPE:3035) Overvalued in 2026?

Based on GuruFocus' analysis, Faraday Technology stock appears to be undervalued. The current stock price of NT$207.00 is trading 23% below its estimated GF Value™ of NT$268.93. GuruFocus considers Faraday Technology to be Modestly Undervalued.

Key valuation signals for TPE:3035:

  • Return-on-Tangible-Equity: 3.57% (61% below median its 10-year median of 9.23)
  • GF Value™: NT$268.93 vs. price of NT$207.00 (23% below fair value)
  • GF Score™: 95/100 with 9 warning signs
  • Industry Position: 31.9% below the Semiconductors median (#521 of 985)

No single metric tells the full story. See the TPE:3035 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Faraday Technology Business Description

Address Li-Hsin Road III, No. 5, Hsinchu Science Park, Hsinchu, TWN, 30078
Faraday Technology Corp is a fabless ASIC vendor and silicon intellectual property and system platform provider. It offers a comprehensive range of ASIC solutions, including total 3DIC packaging, Neoverse CSS design, FPGA-Go-ASIC, and design implementation services. Furthermore, its silicon IP portfolio encompasses a wide array of offerings, such as I/O, Cell Library, Memory Compiler, ARM-compliant CPUs, USB 3.1/2.0, 10/100 Ethernet, Giga Ethernet, SATA3/2, etc. Faraday generates revenue from the sale of goods, the rendering of services, and silicon intellectual property licenses. Geographically, the company generates maximum revenue from Taiwan, and the rest from China, Singapore, the United States, Japan, and other markets.
95GF Score

Get the complete analysis for TPE:3035

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$207.00
Price
NT$268.93
GF Value