Formosa Petrochemical Corp AI Stock Analysis
Formosa Petrochemical Corp (6505) AI Stock Analysis
Formosa Petrochemical Corp
(TWSE:6505)
Formosa Petrochemical scores in the middle of the range. Its exceptionally conservative balance sheet and a strong rebound in free cash flow provide real downside protection, but these strengths are offset by three consecutive years of revenue decline, razor-thin margins (1.6% net) and a low return on equity, leaving profits heavily dependent on refining spreads. Technicals add to the caution: after a strong run above the 100- and 200-day averages, the shares have broken below their 20- and 50-day averages with a negative MACD and weak RSI. Valuation is neutral — a 15.2x P/E on cyclically depressed earnings with a modest 1.4% dividend yield offers limited cushion.
Formosa Petrochemical Corp (6505) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 870.67B
- Dividend Yield
- 1.32%
- Average Volume (3M)
- 31.58M
- Price to Earnings (P/E)
- 11.1
- Beta (1Y)
- -0.01
- Revenue Growth
- 16.05%
- EPS Growth
- 1097.89%
- Country
- TW
- Employees
- 5,218
- Sector
- General
- Sector Strength
- 55
- Industry
- Oil & Gas Refining & Marketing
Formosa Petrochemical Corp Business Overview & Revenue Model
Company Description
Formosa Petrochemical Corporation (FPC), together with its subsidiary companies, operates extensively across the petrochemical and public utility sectors. The company maintains a significant presence throughout Taiwan, Korea, the Philippines, Singapo...
Formosa Petrochemical Corp Financial Statement Overview
Summary
A fortress balance sheet (score 75) is the standout: equity funds roughly 85% of the NT$416.5bn asset base and debt-to-equity fell to just 0.06 from 0.12, giving ample flexibility through refining down-cycles. Cash flow (66) rebounded sharply to NT$44.9bn operating and NT$38.4bn free cash flow against modest capex, though history shows wide swings tied to crude and inventory timing. The drag is the income statement (40): revenue has declined three years running to NT$626bn, and while gross profit doubled and net income rose about 65% to NT$9.9bn, net margin of just 1.6% and ROE under 3% remain far below the 2021 peak, leaving earnings highly exposed to refining spreads.
Income Statement
40NegativeBalance Sheet
75PositiveCash Flow
66Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 652.32B | 626.16B | 663.82B | 712.58B | 848.05B | 620.06B |
| Gross Profit | 71.86B | 22.07B | 10.31B | 25.90B | 16.22B | 65.78B |
| EBITDA | 74.91B | 22.05B | 18.70B | 38.42B | 33.23B | 75.36B |
| Net Income | 54.88B | 9.87B | 5.97B | 21.89B | 14.42B | 49.40B |
Balance Sheet | ||||||
| Total Assets | 590.46B | 416.46B | 371.20B | 416.16B | 421.78B | 458.76B |
| Cash, Cash Equivalents and Short-Term Investments | 219.49B | 124.23B | 51.21B | 96.89B | 87.47B | 132.33B |
| Total Debt | 22.52B | 21.13B | 36.34B | 32.41B | 57.27B | 35.01B |
| Total Liabilities | 98.04B | 55.22B | 68.95B | 74.94B | 104.50B | 96.99B |
| Stockholders Equity | 486.91B | 355.79B | 296.96B | 336.33B | 312.49B | 357.41B |
Cash Flow | ||||||
| Free Cash Flow | 21.02B | 38.38B | -281.31M | 36.99B | -16.83B | 24.98B |
| Operating Cash Flow | 30.78B | 44.85B | 9.20B | 45.38B | -9.18B | 35.53B |
| Investing Cash Flow | -1.18B | 3.49B | -8.20B | -11.79B | -3.86B | -6.71B |
| Financing Cash Flow | -17.01B | -23.68B | -16.20B | -36.12B | -15.20B | -7.17B |
Formosa Petrochemical Corp Peers Comparison
Overall Rating
TW:122976Outperform
TW:474962Neutral- TW:650555Neutral
TW:171748Neutral
TW:132645Neutral
TW:130140Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:1229 | 76Outperform | TWD 69.58B | 15.38 | ― | 4.74% | -3.23% | 11.13% |
| TW:4749 | 62Neutral | TWD 62.81B | 55.74 | ― | 1.14% | 19.16% | 38.15% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:6505 | 55Neutral | TWD 853.53B | 11.13 | ― | 1.32% | 16.05% | 1097.89% |
| TW:1717 | 48Neutral | TWD 74.84B | 33.16 | ― | 1.58% | -1.57% | 36.18% |
| TW:1326 | 45Neutral | TWD 418.20B | 24.59 | ― | 0.82% | 8.51% | ― |
| TW:1301 | 40Underperform | TWD 444.97B | 42.80 | ― | 0.71% | -11.04% | ― |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:6505 | Formosa Petrochemical Corp | 91.20 | 37.42 | 69.59% | |
| TW:1229 | Lien Hwa Industrial Holdings Corporation | 38.00 | -6.46 | -14.53% | |
| TW:1301 | Formosa Plastics Corporation | 70.20 | 27.95 | 66.16% | |
| TW:1326 | Formosa Chemicals & Fibre Corporation | 73.50 | 38.30 | 108.82% | |
| TW:1717 | Eternal Materials Co., Ltd. | 63.00 | 23.49 | 59.47% | |
| TW:4749 | Advanced Echem Materials Company Limited | 703.00 | -96.36 | -12.05% |
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