Formosan Rubber Group Inc. (2107) AI Stock Analysis

Formosan Rubber Group Inc.

(TWSE:2107)

Select Model

Rating:68Neutral

Price Target:TWD 29.00▲(6.62% Upside)

Action:initiatedcoverage

Date:11/09/26

Formosan Rubber scores in the upper-middle range on the strength of an exceptionally safe balance sheet — nearly debt-free, equity-funded, and generating free cash flow that covers almost all reported earnings. Supporting the score is an inexpensive 14.2x P/E paired with a 5.2% dividend yield and very low volatility (beta 0.22), making it a defensive income candidate. The score is held back by a deteriorating earnings engine: revenue has more than halved since 2020, net income declined about 11%, return on equity has fallen under 4%, and a meaningful portion of profit stems from investment rather than operating income. Technicals are mixed — the stock holds above its 100- and 200-day averages but has broken below shorter-term averages with weak RSI and stochastic readings, signaling near-term softness. No earnings call or corporate event data was available, so those factors were excluded and their weight redistributed.

Positive Factors

Strong ProfitabilitySustained high gross and net margins indicate strong earnings power within the company’s rubber and industrial materials operations. This profitability can support reinvestment, provide resilience through moderate demand cycles, and help preserve financial flexibility over the next several quarters.

Negative Factors

Revenue CyclicalityThe sharp prior revenue decline and only modest subsequent recovery point to meaningful end-market cyclicality. Uneven demand can make future sales growth less predictable, complicate capacity and investment planning, and limit the consistency of earnings expansion even while margins remain strong.

Formosan Rubber Group Inc. (2107) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 8.24B
Dividend Yield: 5.15%
Average Volume (3M): 304.07K
Price to Earnings (P/E): 14.5
Beta (1Y): 0.22
Revenue Growth: 13.47%
EPS Growth: 37.71%
Country: TW
Employees: 197
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Formosan Rubber Group Inc. Business Overview & Revenue Model

Company Description

Formosan Rubber Group Inc., together with its subsidiaries, manufactures and sells rubber and plastic sheets, plastic foam, resin sheets, and related materials. The company offers manufacturing and selling products including plastic raincoat material...

Formosan Rubber Group Inc. Financial Statement Overview

Summary

A fortress balance sheet (score 83) anchors the profile: equity funds about 87% of assets, debt-to-equity is just 0.10, and book value has grown every year since 2020. Cash flow is healthy (score 71), with free cash flow of NT$649 million covering roughly 94% of net income on minimal capex, though it has drifted lower from prior years. The weak link is the income statement (score 56): revenue has more than halved since 2020 to NT$1.44 billion, net income fell about 11%, return on equity has compressed below 4%, and a large share of profit comes from non-operating investment income rather than core operations. Improving gross (34.2%) and operating margins are a positive offset, but low-quality, shrinking earnings cap the score.

Income Statement

56Neutral

Balance Sheet

83Very Positive

Cash Flow

71Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.49B	1.44B	1.48B	1.36B	1.94B	2.79B
Gross Profit	510.56M	492.98M	472.81M	420.61M	625.21M	883.66M
EBITDA	613.75M	728.64M	763.57M	721.38M	943.45M	935.16M
Net Income	572.44M	507.82M	573.46M	518.88M	711.68M	777.96M
Balance Sheet
Total Assets	17.40B	15.41B	15.13B	14.28B	13.76B	13.12B
Cash, Cash Equivalents and Short-Term Investments	9.04B	7.27B	7.15B	6.36B	6.22B	6.34B
Total Debt	1.33B	1.36B	1.52B	1.44B	1.41B	704.84M
Total Liabilities	2.28B	1.93B	1.99B	1.88B	1.90B	1.18B
Stockholders Equity	15.12B	13.48B	13.14B	12.40B	11.86B	11.94B
Cash Flow
Free Cash Flow	597.14M	648.78M	786.06M	645.47M	-48.63M	1.72B
Operating Cash Flow	617.49M	692.12M	827.00M	682.69M	-21.41M	1.73B
Investing Cash Flow	-3.27M	649.80M	-458.31M	-1.16B	-394.78M	-781.64M
Financing Cash Flow	-543.37M	-583.23M	-306.41M	-702.08M	187.13M	-302.55M

Formosan Rubber Group Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2107 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:9942	73Outperform	TWD 9.15B	12.06	―	6.33%	12.39%	13.05%
TW:2107	68Neutral	TWD 8.01B	14.47	―	5.15%	13.47%	37.71%
TW:2033	66Neutral	TWD 8.94B	261.02	―	0.27%	-1.16%	-4.45%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3708	49Neutral	TWD 8.37B	2.73	―	6.94%	-79.42%	2756.52%
TW:1321	43Neutral	TWD 7.38B	548.33	―	1.14%	-7.33%	―
TW:1308	40Underperform	TWD 7.72B	-12.95	―	1.53%	-2.26%	36.82%

* General Sector Average

Performance Comparison

TW:2107 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2107	Formosan Rubber Group Inc.	27.20	4.57	20.17%
TW:1308	Asia Polymer Corporation	13.05	-0.02	-0.14%
TW:1321	Ocean Plastics Co., Ltd.	32.90	-3.15	-8.74%
TW:2033	Chia Ta World Co., Ltd.	74.60	59.10	381.29%
TW:3708	Swancor Holding Co., Ltd.	93.60	-27.17	-22.50%
TW:9942	Nak Sealing Technologies Corporation	110.50	10.21	10.18%

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 09, 2026

Formosan Rubber Group Inc. AI Stock Analysis