Formosa Plastics Corporation (1301) AI Stock Analysis

Formosa Plastics Corporation

(TWSE:1301)

Select Model

Rating:39Underperform

Price Target:TWD 59.00▼(-13.62% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score is very low, driven primarily by a severe collapse in financial performance. The company is deeply unprofitable and burning cash, which is the most significant risk. This is compounded by a bearish technical trend, with the stock trading below key moving averages and weak momentum. The high P/E ratio adds further downside risk, as it is unsupported by fundamentals. The balance sheet's moderate leverage is the only mitigating factor, but it is not enough to offset the operational distress.

Positive Factors

Diversified petrochemical portfolioThe broad product portfolio and exposure to multiple end markets provide a foundation for business resilience. Serving packaging, construction, consumer goods, and industrial customers can reduce reliance on any single application and preserve avenues for demand recovery across the cycle.

Negative Factors

Profitability deteriorationThe shift from strong earnings and high margins in 2021–2022 to losses in 2024–2025 shows that current pricing and volume conditions are materially impairing earnings power. Unless margins recover, the business may struggle to generate adequate returns on its substantial capital base.

Formosa Plastics Corporation (1301) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 443.06B
Dividend Yield: 0.73%
Average Volume (3M): 47.21M
Price to Earnings (P/E): 41.6
Beta (1Y): 0.72
Revenue Growth: -5.41%
EPS Growth: ―
Country: TW
Employees: 7,437
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Formosa Plastics Corporation Business Overview & Revenue Model

Company Description

Formosa Plastics Corporation operates as a leading manufacturer and global supplier, producing plastic raw materials, chemical fibers, and a diverse range of petrochemical products. The company's reach extends throughout Taiwan, mainland China, and v...

Formosa Plastics Corporation Financial Statement Overview

Summary

Financial performance is critically weak. The income statement shows severe and accelerating losses with a TTM gross margin of only 3.2%, leading to deeply negative operating and net margins. Cash flow is also a major concern, with three consecutive years of negative free cash flow, indicating the business is not self-funding. The balance sheet provides the only support with a moderate debt-to-equity ratio of 0.36, but equity is eroding. Overall, the financial health is under considerable stress.

Income Statement

18Very Negative

Balance Sheet

55Neutral

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	172.06B	175.41B	200.04B	199.14B	251.65B	273.60B
Gross Profit	9.09B	5.60B	10.15B	9.83B	42.56B	76.16B
EBITDA	8.31B	3.06B	9.82B	9.23B	53.29B	95.09B
Net Income	10.45B	-10.05B	-1.23B	7.34B	36.14B	71.36B
Balance Sheet
Total Assets	780.96B	557.50B	496.83B	530.74B	511.25B	543.68B
Cash, Cash Equivalents and Short-Term Investments	274.27B	118.77B	58.82B	98.53B	105.62B	126.83B
Total Debt	160.07B	130.74B	140.59B	132.14B	93.73B	56.43B
Total Liabilities	206.70B	194.28B	207.85B	183.38B	153.57B	140.49B
Stockholders Equity	574.26B	363.22B	288.98B	347.36B	357.68B	403.19B
Cash Flow
Free Cash Flow	-10.71B	-7.94B	-4.74B	-7.48B	42.01B	39.58B
Operating Cash Flow	3.57B	6.62B	11.46B	6.16B	56.80B	57.86B
Investing Cash Flow	-2.44B	-6.10B	-17.81B	-27.49B	-18.32B	-21.82B
Financing Cash Flow	-3.26B	-8.86B	17.58B	12.53B	-30.41B	-35.99B

Formosa Plastics Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1301 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1229	76Outperform	TWD 69.40B	15.26	―	4.78%	-3.23%	11.13%
TW:4749	62Neutral	TWD 66.60B	43.73	―	1.17%	19.16%	38.15%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1717	48Neutral	TWD 74.61B	32.26	―	1.62%	7.31%	24.42%
TW:1326	45Neutral	TWD 429.90B	23.82	―	0.84%	8.51%	―
TW:1802	41Neutral	TWD 223.05B	48.06	―	―	11.76%	―
TW:1301	39Underperform	TWD 446.87B	41.65	―	0.73%	-5.41%	―

* General Sector Average

Performance Comparison

TW:1301 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1301	Formosa Plastics Corporation	68.30	26.15	62.04%
TW:1229	Lien Hwa Industrial Holdings Corporation	37.70	-6.76	-15.21%
TW:1326	Formosa Chemicals & Fibre Corporation	71.20	37.59	111.81%
TW:1717	Eternal Materials Co., Ltd.	61.30	22.93	59.75%
TW:1802	Taiwan Glass Industry Corp.	81.70	46.70	133.43%
TW:4749	Advanced Echem Materials Company Limited	683.00	-82.76	-10.81%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 10, 2026

Formosa Plastics Corporation AI Stock Analysis