Formosa PetrochemicalTPE:6505 88 Return-on-Tangible-Equity is 6.17% as of Dec. 2025, which is 31% below its 10-year median of 8.89. GuruFocus rates TPE:6505 with a GF Score™ of 88/100 and a GF Value™ of NT$57.79 (Fairly Valued). The stock has 7 warning signs investors should review. Among 942 Oil & Gas companies, Formosa Petrochemical ranks worse than 59.55% 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 Petrochemical's annualized net income for the quarter that ended in Dec. 2025 was NT$20,444 Mil. Formosa Petrochemical's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$331,335 Mil. Therefore, Formosa Petrochemical's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 6.17%.
The historical rank and industry rank for Formosa Petrochemical's Return-on-Tangible-Equity or its related term are showing as below:
TPE:6505'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.89 Med: 8.89 Max: 26.32
Current: 3.2
During the past 13 years, Formosa Petrochemical's highest Return-on-Tangible-Equity was 26.32%. The lowest was 1.89%. And the median was 8.89%.
TPE:6505's Return-on-Tangible-Equity is ranked worse than 59.55% of 942
companies
in the Oil & Gas industry
Industry Median: 6.77
vs TPE:6505: 3.20
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 Petrochemical Return-on-Tangible-Equity Related Terms
Formosa Petrochemical Return-on-Tangible-Equity Historical Data
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The historical data trend for Formosa Petrochemical'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:6505 vs VLO, MPC, PSX: Return-on-Tangible-Equity Comparison
For the Oil & Gas Refining & Marketing subindustry, Formosa Petrochemical'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 Petrochemical Return-on-Tangible-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Formosa Petrochemical's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Formosa Petrochemical'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 6.17% mean?
Formosa Petrochemical (TPE:6505) has a Return-on-Tangible-Equity of 6.17% 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 Petrochemical and its competitors. This is 31% below median its historical median of 8.89. Over the past decade, Formosa Petrochemical's Return-on-Tangible-Equity has ranged from 1.89 to 26.32. According to the industry distribution chart, Formosa Petrochemical ranks #561 out of 942 companies in the Oil & Gas industry, placing it in the top 59.6%.
Is Formosa Petrochemical's Return-on-Tangible-Equity too high?
Formosa Petrochemical's current Return-on-Tangible-Equity of 6.17% is 31% below median its 10-year median of 8.89. Over the past 10 years, this metric has ranged from a low of 1.89 to a high of 26.32. The Oil & Gas industry median Return-on-Tangible-Equity is 6.77. Formosa Petrochemical's value of 6.17% is 8.9% below this industry median. Based on the distribution chart, Formosa Petrochemical ranks #561 out of 942 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Formosa Petrochemical has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Formosa Petrochemical's Return-on-Tangible-Equity compare to VLO and MPC?
According to the Oil & Gas industry distribution chart, Formosa Petrochemical ranks #561 out of 942 companies for Return-on-Tangible-Equity. This places Formosa Petrochemical in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.77. Formosa Petrochemical's value of 6.17% is 8.9% below this benchmark. Historically, Formosa Petrochemical's own Return-on-Tangible-Equity has ranged from 1.89 to 26.32 over the past decade. While the company's 10-year median is 8.89 vs. the industry median of 6.77, Formosa Petrochemical 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 an Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 6.77, based on 942 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 Petrochemical's current Return-on-Tangible-Equity of 6.17% is 8.9% 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 Formosa Petrochemical and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 6.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Petrochemical's current Return-on-Tangible-Equity is 6.17%, which is 31% below median its own 10-year median of 8.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Petrochemical stock overvalued right now?
Based on GuruFocus' analysis, Formosa Petrochemical (TPE:6505) is currently considered Fairly Valued. The stock's GF Value™ is NT$57.79, compared to a current price of NT$58.80 — trading 1.7% above its estimated fair value. The current Return-on-Tangible-Equity is 6.17%, which is 31% below median its 10-year median of 8.89 and 8.9% below the Oil & Gas industry median of 6.77. Formosa Petrochemical's overall GF Score™ is 88/100 with 7 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 Petrochemical (TPE:6505), the current Return-on-Tangible-Equity is 6.17% 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 Petrochemical (TPE:6505) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Petrochemical stock appears to be overvalued.
The current stock price of NT$58.80 is trading 1.7% above its estimated GF Value™ of NT$57.79.
GuruFocus considers Formosa Petrochemical to be Fairly Valued.
Key valuation signals for TPE:6505:
Return-on-Tangible-Equity: 6.17% (31% below median its 10-year median of 8.89)
GF Value™: NT$57.79 vs. price of NT$58.80 (1.7% above fair value)
Industry Position: 8.9% below the Oil & Gas median (#561 of 942)
No single metric tells the full story. See the TPE:6505 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa Petrochemical Corp engages in the Operation of refinery of petroleum and integrated manufacture of hydrocarbon. The firm operates in two segments. The Petrochemical segment that derives majority revenue engages in producing and selling petroleum, and petrochemical products. The Public utility segment engages in producing and selling water, electricity, and steam. Its product offerings comprise gasoline, jet fuel, kerosene, fuel oil, asphalt, sulfur, lubricant, diesel, naphtha, and liquid petroleum gas.
88GF Score
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