Formosa Laboratories (TPE:4746) ROCE %: 5.26% (As of Dec. 2025)


TPE:4746 Formosa Laboratories Inc TPE:4746
70 GF Score
Price NT$50.80
GF Value NT$98.73
Valuation Possible Value Trap
! 3 Warning Signs
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What is Formosa Laboratories ROCE %?

Formosa Laboratories TPE:4746 -2.31% 70 ROCE % is 5.26% as of Dec. 2025. GuruFocus rates TPE:4746 with a GF Score™ of 70/100 and a GF Value™ of NT$98.73 (Possible Value Trap). The stock has 3 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Formosa Laboratories's annualized ROCE % for the quarter that ended in Dec. 2025 was 5.26%.

Formosa Laboratories  (TPE:4746) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Formosa Laboratories ROCE % Related Terms

Formosa Laboratories ROCE % Historical Data

* Premium members only.

The historical data trend for Formosa Laboratories's ROCE % 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.

Formosa Laboratories ROCE % Chart

Formosa Laboratories Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.22 3.66 1.77 2.17 4.76

Formosa Laboratories Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
ROCE % 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 -1.21 5.65 -4.14 12.79 5.26
TPE:4746
70GF Score
Formosa Laboratories Inc TPE:4746
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Formosa Laboratories ROCE % Calculation

Formosa Laboratories's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=534.874/( ( (13895.381 - 2355.793) + (13833.317 - 2900.325) )/ 2 )
=534.874/( (11539.588+10932.992)/ 2 )
=534.874/11236.29
=4.76 %

Formosa Laboratories's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Sep. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Sep. 2025 )(Q: Dec. 2025 )
=568.844/( ( (13543.984 - 2837.93) + (13833.317 - 2900.325) )/ 2 )
=568.844/( ( 10706.054 + 10932.992 )/ 2 )
=568.844/10819.523
=5.26 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2025) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 5.26% mean?
Formosa Laboratories (TPE:4746) has a ROCE % of 5.26% as of Dec. 2025.
Is Formosa Laboratories' ROCE % too high?
Formosa Laboratories' current ROCE % is 5.26%. The Drug Manufacturers industry median ROCE % is 7.00. Formosa Laboratories' value of 5.26% is 24.8% below this industry median. 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' ROCE % compare to ZTS?
Formosa Laboratories' ROCE % of 5.26% can be compared against companies in the Drug Manufacturers industry. The industry median ROCE % is 7.00. Formosa Laboratories' value of 5.26% is 24.8% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Drug Manufacturers company?
The median ROCE % among Drug Manufacturers companies is 7.00, based on 958 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formosa Laboratories's current ROCE % of 5.26% is 24.8% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Drug Manufacturers industry, the median ROCE % is 7.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Laboratories's current ROCE % is 5.26%. 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$98.73, compared to a current price of NT$50.80 — trading 48.5% below its estimated fair value. The current ROCE % is 5.26% and 24.8% below the Drug Manufacturers industry median of 7.00. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Formosa Laboratories (TPE:4746), the current ROCE % is 5.26% 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$50.80 is trading 48.5% below its estimated GF Value™ of NT$98.73. GuruFocus considers Formosa Laboratories to be Possible Value Trap.

Key valuation signals for TPE:4746:

  • ROCE %: 5.26%
  • GF Value™: NT$98.73 vs. price of NT$50.80 (48.5% below fair value)
  • GF Score™: 70/100 with 3 warning signs
  • Industry Position: 24.8% below the Drug Manufacturers median

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 Business Description

Address No. 36-1, Heping Street, Luzhu disctrict, Taoyuan, TWN, 338002
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

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$50.80
Price
NT$98.73
GF Value