ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Formosa Petrochemical's annualizedNet Income for the quarter that ended in Dec. 2025 was NT$20,444 Mil.
Formosa Petrochemical's average Total Assets over the quarter that ended in Dec. 2025 was NT$396,229 Mil. Therefore, Formosa Petrochemical's annualized ROA % for the quarter that ended in Dec. 2025 was 5.16%.
The historical rank and industry rank for Formosa Petrochemical's ROA % or its related term are showing as below:
TPE:6505'
s ROA % Range Over the Past 10 Years
Min: 1.52 Med: 7.19 Max: 18.14
Current: 2.59
During the past 13 years, Formosa Petrochemical's highest ROA % was 18.14%. The lowest was 1.52%. And the median was 7.19%.
TPE:6505's ROA % is ranked better than 53.3% of 1030
companies
in the Oil & Gas industry
Industry Median: 1.895
vs TPE:6505: 2.59
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Oil & Gas Refining & Marketing subindustry, Formosa Petrochemical's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Formosa Petrochemical's ROA % distribution charts can be found below:
* The bar in red indicates where Formosa Petrochemical's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Formosa Petrochemical (TPE:6505) has a ROA % of 5.16% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Formosa Petrochemical and its competitors. This is 28% below median its historical median of 7.19. Over the past decade, Formosa Petrochemical's ROA % has ranged from 1.52 to 18.14. According to the industry distribution chart, Formosa Petrochemical ranks #481 out of 1030 companies in the Oil & Gas industry, placing it in the top 46.7%.
Is Formosa Petrochemical's ROA % too high?
Formosa Petrochemical's current ROA % of 5.16% is 28% below median its 10-year median of 7.19. Over the past 10 years, this metric has ranged from a low of 1.52 to a high of 18.14. The Oil & Gas industry median ROA % is 1.90. Formosa Petrochemical's value of 5.16% is 172.3% above this industry median. Based on the distribution chart, Formosa Petrochemical ranks #481 out of 1030 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Formosa Petrochemical has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Formosa Petrochemical's ROA % compare to VLO and MPC?
According to the Oil & Gas industry distribution chart, Formosa Petrochemical ranks #481 out of 1030 companies for ROA %. This puts Formosa Petrochemical in the upper half of its industry. The industry median ROA % is 1.90. Formosa Petrochemical's value of 5.16% is 172.3% above this benchmark. Historically, Formosa Petrochemical's own ROA % has ranged from 1.52 to 18.14 over the past decade. While the company's 10-year median is 7.19 vs. the industry median of 1.90, Formosa Petrochemical 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 ROA % for an Oil & Gas company?
The median ROA % among Oil & Gas companies is 1.90, based on 1,030 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formosa Petrochemical's current ROA % of 5.16% is 172.3% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Formosa Petrochemical and its competitors. For the Oil & Gas industry, the median ROA % is 1.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Petrochemical's current ROA % is 5.16%, which is 28% below median its own 10-year median of 7.19. 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$57.54, compared to a current price of NT$53.50 — trading 7% below its estimated fair value. The current ROA % is 5.16%, which is 28% below median its 10-year median of 7.19 and 172.3% above the Oil & Gas industry median of 1.90. Formosa Petrochemical's overall GF Score™ is 89/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Formosa Petrochemical (TPE:6505), the current ROA % is 5.16% 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 undervalued.
The current stock price of NT$53.50 is trading 7% below its estimated GF Value™ of NT$57.54.
GuruFocus considers Formosa Petrochemical to be Fairly Valued.
Key valuation signals for TPE:6505:
ROA %: 5.16% (28% below median its 10-year median of 7.19)
GF Value™: NT$57.54 vs. price of NT$53.50 (7% below fair value)
Industry Position: 172.3% above the Oil & Gas median (#481 of 1030)
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.
89GF Score
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