The historical rank and industry rank for Formosan Union Chemical's ROE % or its related term are showing as below:
TPE:1709'
s ROE % Range Over the Past 10 Years
Min: 3.08 Med: 8.25 Max: 13.65
Current: 6.61
During the past 13 years, Formosan Union Chemical's highest ROE % was 13.65%. The lowest was 3.08%. And the median was 8.25%.
TPE:1709's ROE % is ranked better than 57.83% of 1591
companies
in the Chemicals industry
Industry Median: 5.19
vs TPE:1709: 6.61
Formosan Union Chemical (TPE:1709) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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 Chemicals subindustry, Formosan Union Chemical's ROE %, along with its competitors' market caps and ROE % 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.
Formosan Union Chemical ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Formosan Union Chemical's ROE % distribution charts can be found below:
* The bar in red indicates where Formosan Union Chemical's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Formosan Union Chemical (TPE:1709) has a ROE % of 7.89% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Formosan Union Chemical and its competitors. This is near median its historical median of 8.25. Over the past decade, Formosan Union Chemical's ROE % has ranged from 3.08 to 13.65. According to the industry distribution chart, Formosan Union Chemical ranks #671 out of 1591 companies in the Chemicals industry, placing it in the top 42.2%.
Is Formosan Union Chemical's ROE % too high?
Formosan Union Chemical's current ROE % of 7.89% is near median its 10-year median of 8.25. Over the past 10 years, this metric has ranged from a low of 3.08 to a high of 13.65. The Chemicals industry median ROE % is 5.19. Formosan Union Chemical's value of 7.89% is 52% above this industry median. Based on the distribution chart, Formosan Union Chemical ranks #671 out of 1591 companies in the Chemicals industry, which is above the industry midpoint. Overall, Formosan Union Chemical has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Formosan Union Chemical's ROE % compare to DOW?
According to the Chemicals industry distribution chart, Formosan Union Chemical ranks #671 out of 1591 companies for ROE %. This puts Formosan Union Chemical in the upper half of its industry. The industry median ROE % is 5.19. Formosan Union Chemical's value of 7.89% is 52% above this benchmark. Historically, Formosan Union Chemical's own ROE % has ranged from 3.08 to 13.65 over the past decade. While the company's 10-year median is 8.25 vs. the industry median of 5.19, Formosan Union Chemical 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 ROE % for a Chemicals company?
The median ROE % among Chemicals companies is 5.19, based on 1,591 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formosan Union Chemical's current ROE % of 7.89% is 52% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Formosan Union Chemical and its competitors. For the Chemicals industry, the median ROE % is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosan Union Chemical's current ROE % is 7.89%, which is near median its own 10-year median of 8.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosan Union Chemical stock overvalued right now?
Based on GuruFocus' analysis, Formosan Union Chemical (TPE:1709) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$18.58, compared to a current price of NT$21.05 — trading 13.3% above its estimated fair value. The current ROE % is 7.89%, which is near median its 10-year median of 8.25 and 52% above the Chemicals industry median of 5.19. Formosan Union Chemical's overall GF Score™ is 79/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Formosan Union Chemical (TPE:1709), the current ROE % is 7.89% 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 Formosan Union Chemical (TPE:1709) Overvalued in 2026?
Based on GuruFocus' analysis, Formosan Union Chemical stock appears to be overvalued.
The current stock price of NT$21.05 is trading 13.3% above its estimated GF Value™ of NT$18.58.
GuruFocus considers Formosan Union Chemical to be Modestly Overvalued.
Key valuation signals for TPE:1709:
ROE %: 7.89% (near median its 10-year median of 8.25)
GF Value™: NT$18.58 vs. price of NT$21.05 (13.3% above fair value)
Industry Position: 52% above the Chemicals median (#671 of 1591)
No single metric tells the full story. See the TPE:1709 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosan Union Chemical Corp is a Taiwan-based company principally engaged in the production, processing, and trading of chemical products. Its key products are alkyl benzene, nonyl phenol, and hydrogenated hydrocarbon resin and its derivatives. The products are mainly used as raw materials for detergents, surfactants, rubbers, and plastic anti-oxidant agents, among others.
79GF Score
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