Formosa Laboratories, Inc. (4746) AI Stock Analysis

Formosa Laboratories, Inc.

(TWSE:4746)

Select Model

Rating:64Neutral

Price Target:TWD 47.00▲(4.10% Upside)

Action:initiatedcoverage

Date:11/10/26

The score is supported by attractive valuation and a relatively strong balance sheet, but materially reduced by weak technical momentum, severe reported revenue contraction, declining free cash flow, and inconsistent earnings quality.

Positive Factors

Manageable LeverageStable and manageable leverage gives Formosa Laboratories financial flexibility to fund operations and pursue pharmaceutical development without a proportionate rise in balance-sheet risk. Growing equity and assets further support resilience across the next several quarters.

Negative Factors

2025 Revenue DeclineThe reversal from several years of revenue expansion to a sharp reported decline creates uncertainty about the durability of demand and the company’s growth trajectory. Prolonged top-line weakness could limit operating leverage, reinvestment capacity, and future earnings expansion.

Formosa Laboratories, Inc. (4746) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.44B
Dividend Yield: 6.64%
Average Volume (3M): 640.74K
Price to Earnings (P/E): 11.4
Beta (1Y): 0.39
Revenue Growth: -2.71%
EPS Growth: ―
Country: TW
Employees: 56
Sector: General
Sector Strength: 55
Industry: Medical - Pharmaceuticals

Formosa Laboratories, Inc. Business Overview & Revenue Model

Company Description

Formosa Laboratories, Inc., together with its subsidiaries, engages in the manufacture and sale of active pharmaceutical ingredients (APIs) and ultraviolet absorbers in India, the Netherlands, Japan, Germany, Taiwan, China, Switzerland, the United St...

Formosa Laboratories, Inc. Financial Statement Overview

Summary

Profitability and operating cash flow improved in 2025, and the balance sheet strengthened with lower debt and a 0.47 debt-to-equity ratio. However, severe reported revenue contraction, declining free cash flow, moderate return on equity, and uneven historical performance limit financial quality.

Income Statement

62Positive

Balance Sheet

78Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.64B	4.85B	4.73B	4.36B	3.77B	3.14B
Gross Profit	1.92B	2.03B	2.05B	1.92B	1.39B	971.44M
EBITDA	1.42B	1.35B	746.86M	1.16B	823.41M	1.59B
Net Income	475.70M	441.11M	157.27M	126.24M	216.81M	1.25B
Balance Sheet
Total Assets	13.91B	13.83B	13.90B	13.64B	12.75B	12.02B
Cash, Cash Equivalents and Short-Term Investments	2.07B	2.49B	2.70B	2.51B	1.63B	1.09B
Total Debt	3.21B	3.61B	3.90B	4.06B	3.80B	3.42B
Total Liabilities	5.61B	5.16B	5.25B	5.43B	4.95B	4.41B
Stockholders Equity	7.43B	7.76B	7.68B	7.57B	7.52B	7.40B
Cash Flow
Free Cash Flow	-362.17M	472.12M	138.46M	286.09M	203.10M	-202.66M
Operating Cash Flow	821.58M	1.32B	726.33M	826.60M	643.09M	311.16M
Investing Cash Flow	-913.75M	-845.30M	-1.03B	-1.26B	-540.72M	-589.49M
Financing Cash Flow	-257.69M	-677.96M	132.09M	117.46M	447.94M	439.02M

Formosa Laboratories, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4746 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4166	70Outperform	TWD 5.47B	22.88	―	―	―	―
TW:4746	64Neutral	TWD 5.43B	11.40	―	6.64%	-2.71%	―
TW:4721	63Neutral	TWD 5.16B	13.89	―	3.34%	7.38%	85.69%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4119	48Neutral	TWD 5.85B	96.18	―	1.53%	-18.83%	-87.54%
TW:6785	41Neutral	TWD 5.11B	-70.18	―	0.13%	-57.57%	-312.45%

* General Sector Average

Performance Comparison

TW:4746 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4746	Formosa Laboratories, Inc.	45.15	-16.14	-26.33%
TW:4119	SCI Pharmtech Corp.	48.95	-0.16	-0.33%
TW:4166	Orient Pharma Co., Ltd.	22.50	-2.10	-8.54%
TW:4721	Mechema Chemicals International Corp.	68.80	1.43	2.12%
TW:6785	Alar Pharmaceuticals Inc	76.50	-178.24	-69.97%
TW:7902	Uwell Biopharma Inc.	25.40	-2.20	-7.97%

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 Laboratories, Inc. AI Stock Analysis