Formosa LaboratoriesTPE:4746 70 Return-on-Tangible-Equity is 8.04% as of Dec. 2025, which is 39% above its 10-year median of 5.80. GuruFocus rates TPE:4746 with a GF Score™ of 70/100 and a GF Value™ of NT$99.09 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 901 Drug Manufacturers companies, Formosa Laboratories ranks worse than 55.72% 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 Laboratories's annualized net income for the quarter that ended in Dec. 2025 was NT$589 Mil. Formosa Laboratories's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$7,332 Mil. Therefore, Formosa Laboratories's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 8.04%.
The historical rank and industry rank for Formosa Laboratories's Return-on-Tangible-Equity or its related term are showing as below:
TPE:4746'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.29 Med: 5.8 Max: 20.67
Current: 6.02
During the past 13 years, Formosa Laboratories's highest Return-on-Tangible-Equity was 20.67%. The lowest was 0.29%. And the median was 5.80%.
TPE:4746's Return-on-Tangible-Equity is ranked worse than 55.72% of 901
companies
in the Drug Manufacturers industry
Industry Median: 7.9
vs TPE:4746: 6.02
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 Laboratories Return-on-Tangible-Equity Related Terms
Formosa Laboratories Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Formosa Laboratories'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:4746 vs ZTS, UTHR: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Formosa Laboratories'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 Laboratories Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Formosa Laboratories's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Formosa Laboratories'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 8.04% mean?
Formosa Laboratories (TPE:4746) has a Return-on-Tangible-Equity of 8.04% 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 Laboratories and its competitors. This is 39% above median its historical median of 5.80. Over the past decade, Formosa Laboratories' Return-on-Tangible-Equity has ranged from 0.29 to 20.67. According to the industry distribution chart, Formosa Laboratories ranks #502 out of 901 companies in the Drug Manufacturers industry, placing it in the top 55.7%.
Is Formosa Laboratories' Return-on-Tangible-Equity too high?
Formosa Laboratories' current Return-on-Tangible-Equity of 8.04% is 39% above median its 10-year median of 5.80. Over the past 10 years, this metric has ranged from a low of 0.29 to a high of 20.67. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.90. Formosa Laboratories' value of 8.04% is 1.8% above this industry median. Based on the distribution chart, Formosa Laboratories ranks #502 out of 901 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Formosa Laboratories has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Formosa Laboratories' Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Formosa Laboratories ranks #502 out of 901 companies for Return-on-Tangible-Equity. This places Formosa Laboratories in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.90. Formosa Laboratories' value of 8.04% is 1.8% above this benchmark. Historically, Formosa Laboratories' own Return-on-Tangible-Equity has ranged from 0.29 to 20.67 over the past decade. While the company's 10-year median is 5.80 vs. the industry median of 7.90, Formosa Laboratories 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 Drug Manufacturers company?
The median Return-on-Tangible-Equity among Drug Manufacturers companies is 7.90, based on 901 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 Laboratories's current Return-on-Tangible-Equity of 8.04% is 1.8% 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 Laboratories and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Laboratories's current Return-on-Tangible-Equity is 8.04%, which is 39% above median its own 10-year median of 5.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Formosa Laboratories (TPE:4746) is currently considered Possible Value Trap. The stock's GF Value™ is NT$99.09, compared to a current price of NT$54.80 — trading 44.7% below its estimated fair value. The current Return-on-Tangible-Equity is 8.04%, which is 39% above median its 10-year median of 5.80 and 1.8% above the Drug Manufacturers industry median of 7.90. Formosa Laboratories' overall GF Score™ is 70/100 with 3 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 Laboratories (TPE:4746), the current Return-on-Tangible-Equity is 8.04% 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 Laboratories (TPE:4746) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Laboratories stock appears to be undervalued.
The current stock price of NT$54.80 is trading 44.7% below its estimated GF Value™ of NT$99.09.
GuruFocus considers Formosa Laboratories to be Possible Value Trap.
Key valuation signals for TPE:4746:
Return-on-Tangible-Equity: 8.04% (39% above median its 10-year median of 5.80)
GF Value™: NT$99.09 vs. price of NT$54.80 (44.7% below fair value)
Industry Position: 1.8% above the Drug Manufacturers median (#502 of 901)
No single metric tells the full story. See the TPE:4746 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa Laboratories Inc is mainly engaged in the wholesale and manufacturing of active pharmaceutical ingredients, as well as ultraviolet absorbers. The company geographically operates in India, Taiwan, Netherlands, Switzerland, Germany, Japan, China, Canada, United States, and Others.
70GF Score
Get the complete analysis for TPE:4746
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