Formosa Advanced Technologies Co (TPE:8131) ROE %: 13.90% (As of Dec. 2025) — 20% Above Median

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TPE:8131 Formosa Advanced Technologies Co Ltd TPE:8131
69 GF Score
Price NT$81.20
GF Value NT$47.56
Valuation Significantly Overvalued
! 9 Warning Signs
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What is Formosa Advanced Technologies Co ROE %?

Formosa Advanced Technologies Co TPE:8131 +8.41% 69 ROE % is 13.90% as of Dec. 2025, which is 20% above its 10-year median of 11.58. GuruFocus rates TPE:8131 with a GF Score™ of 69/100 and a GF Value™ of NT$47.56 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,002 Semiconductors companies, Formosa Advanced Technologies Co ranks better than 53.79% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Formosa Advanced Technologies Co's annualized net income for the quarter that ended in Dec. 2025 was NT$1,605 Mil. Formosa Advanced Technologies Co's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was NT$11,547 Mil. Therefore, Formosa Advanced Technologies Co's annualized ROE % for the quarter that ended in Dec. 2025 was 13.90%.

The historical rank and industry rank for Formosa Advanced Technologies Co's ROE % or its related term are showing as below:

TPE:8131' s ROE % Range Over the Past 10 Years
Min: 4.33   Med: 11.58   Max: 16.43
Current: 5.51

During the past 13 years, Formosa Advanced Technologies Co's highest ROE % was 16.43%. The lowest was 4.33%. And the median was 11.58%.

TPE:8131's ROE % is ranked better than
53.79% of 1002 companies
in the Semiconductors industry
Industry Median: 4.625 vs TPE:8131: 5.51

Formosa Advanced Technologies Co  (TPE:8131) 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:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=1605.34/11546.8935
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1605.34 / 11816.852)*(11816.852 / 13169.314)*(13169.314 / 11546.8935)
=Net Margin %*Asset Turnover*Equity Multiplier
=13.59 %*0.8973*1.1405
=ROA %*Equity Multiplier
=12.19 %*1.1405
=13.90 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=1605.34/11546.8935
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1605.34 / 2006.676) * (2006.676 / 1700.168) * (1700.168 / 11816.852) * (11816.852 / 13169.314) * (13169.314 / 11546.8935)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8 * 1.1803 * 14.39 % * 0.8973 * 1.1405
=13.90 %

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.


Formosa Advanced Technologies Co ROE % Related Terms


Formosa Advanced Technologies Co ROE % Historical Data

* Premium members only.

The historical data trend for Formosa Advanced Technologies Co's ROE % 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 Advanced Technologies Co ROE % Chart

Formosa Advanced Technologies Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.91 16.43 4.33 7.93 5.21

Formosa Advanced Technologies Co Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
ROE % 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 5.27 5.70 -8.59 10.29 13.90

TPE:8131 vs NVDA, AVGO, MU: ROE % Comparison

For the Semiconductors subindustry, Formosa Advanced Technologies Co'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.


Formosa Advanced Technologies Co ROE % vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Formosa Advanced Technologies Co's ROE % distribution charts can be found below:

* The bar in red indicates where Formosa Advanced Technologies Co's ROE % falls into.


TPE:8131
69GF Score
Formosa Advanced Technologies Co Ltd TPE:8131
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Formosa Advanced Technologies Co ROE % Calculation

Formosa Advanced Technologies Co's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=602.632/( (10906.927+12247.132)/ 2 )
=602.632/11577.0295
=5.21 %

Formosa Advanced Technologies Co's annualized ROE % for the quarter that ended in Dec. 2025 is calculated as

ROE %=Net Income (Q: Dec. 2025 )/( (Total Stockholders Equity (Q: Sep. 2025 )+Total Stockholders Equity (Q: Dec. 2025 ))/ count )
=1605.34/( (10846.655+12247.132)/ 2 )
=1605.34/11546.8935
=13.90 %

* 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 13.90% mean?
Formosa Advanced Technologies Co (TPE:8131) has a ROE % of 13.90% 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 Formosa Advanced Technologies Co and its competitors. This is 20% above median its historical median of 11.58. Over the past decade, Formosa Advanced Technologies Co's ROE % has ranged from 4.33 to 16.43. According to the industry distribution chart, Formosa Advanced Technologies Co ranks #463 out of 1002 companies in the Semiconductors industry, placing it in the top 46.2%.
Is Formosa Advanced Technologies Co's ROE % too high?
Formosa Advanced Technologies Co's current ROE % of 13.90% is 20% above median its 10-year median of 11.58. Over the past 10 years, this metric has ranged from a low of 4.33 to a high of 16.43. The Semiconductors industry median ROE % is 4.63. Formosa Advanced Technologies Co's value of 13.90% is 200.5% above this industry median. Based on the distribution chart, Formosa Advanced Technologies Co ranks #463 out of 1002 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Formosa Advanced Technologies Co has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Formosa Advanced Technologies Co's ROE % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Formosa Advanced Technologies Co ranks #463 out of 1002 companies for ROE %. This puts Formosa Advanced Technologies Co in the upper half of its industry. The industry median ROE % is 4.63. Formosa Advanced Technologies Co's value of 13.90% is 200.5% above this benchmark. Historically, Formosa Advanced Technologies Co's own ROE % has ranged from 4.33 to 16.43 over the past decade. While the company's 10-year median is 11.58 vs. the industry median of 4.63, Formosa Advanced Technologies Co 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 Semiconductors company?
The median ROE % among Semiconductors companies is 4.63, based on 1,002 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. Formosa Advanced Technologies Co's current ROE % of 13.90% is 200.5% 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 Formosa Advanced Technologies Co and its competitors. For the Semiconductors industry, the median ROE % is 4.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Advanced Technologies Co's current ROE % is 13.90%, which is 20% above median its own 10-year median of 11.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Advanced Technologies Co stock overvalued right now?
Based on GuruFocus' analysis, Formosa Advanced Technologies Co (TPE:8131) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$47.56, compared to a current price of NT$81.20 — trading 70.7% above its estimated fair value. The current ROE % is 13.90%, which is 20% above median its 10-year median of 11.58 and 200.5% above the Semiconductors industry median of 4.63. Formosa Advanced Technologies Co's overall GF Score™ is 69/100 with 9 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 Formosa Advanced Technologies Co (TPE:8131), the current ROE % is 13.90% 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 Advanced Technologies Co (TPE:8131) Overvalued in 2026?

Based on GuruFocus' analysis, Formosa Advanced Technologies Co stock appears to be overvalued. The current stock price of NT$81.20 is trading 70.7% above its estimated GF Value™ of NT$47.56. GuruFocus considers Formosa Advanced Technologies Co to be Significantly Overvalued.

Key valuation signals for TPE:8131:

  • ROE %: 13.90% (20% above median its 10-year median of 11.58)
  • GF Value™: NT$47.56 vs. price of NT$81.20 (70.7% above fair value)
  • GF Score™: 69/100 with 9 warning signs
  • Industry Position: 200.5% above the Semiconductors median (#463 of 1002)

No single metric tells the full story. See the TPE:8131 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Formosa Advanced Technologies Co Business Description

Address No.329, Henan Street, Liuzhong Viliage, Yunlin County, Douliu, TWN, 640
Formosa Advanced Technologies Co Ltd is a professional manufacturer of DRAM assembly, testing, and module Turn-Key service in Taiwan. The group's business activity is operated in Taiwan, the USA, China, Korea, Mainland China, and Others. The company's operating segment includes the integrated-chips ("IC" ) department and the module department. The integrated-chips department includes packaging, testing, processing, and research and development of integrated chips. The module department includes the assembly, testing, and research and development of module pieces.
69GF Score

Get the complete analysis for TPE:8131

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

NT$81.20
Price
NT$47.56
GF Value